Dipo Olowookere
By Dipo Olowookere
The chief executive of the Nigerian Exchange (NGX) Group Plc, Mr Temi Popoola, has been appointed to the board of the Ethiopian Securities Exchange (ESX).
Mr Popoola’s appointment followed the capital injection of the NGX Group into the Ethiopian bourse.
Business Post reports that the ESX raised close to 1.3 billion Ethiopian Birr (ETB) from the private sector, with the Government of Ethiopia retaining 25 per cent of the exchange and the private sector players controlling 75 per cent.
Two other investors that joined the NGX Group for the capital raising were FSD Africa, a UK-backed non-profit financial institution, and the Trade and Development Bank Group (TDB), the financial arm of the Common Market for Eastern and Southern Africa (COMESA) trade block.
The NGX Group disclosed that its investment in ESX reflects its confidence in the potential of Ethiopia’s rapidly growing economy and capital market, as it aims to support the development of a vibrant and resilient financial ecosystem in the country, fostering increased investor participation and capital formation.
It further stated that this move marks its entry into East Africa, underscoring its commitment to driving growth and innovation in the African capital markets, while strategically positioning itself as the largest foreign institutional investor in the ESX.
“We extend our congratulations to the ESX on its successful capital raise and commend the Government of Ethiopia and the private sector for their support in bringing this pioneering initiative in the country to fruition.
“Our partnership with ESX is a resounding affirmation of our unwavering dedication to promoting economic development, transparency, and exemplary corporate governance standards that foster an environment conducive to inclusive growth, even as we aim to maximize value for our esteemed shareholders,” the Chairman of NGX Group, Mr Umaru Kwairanga, stated.
On his part, Mr Popoola, said, “We are excited to announce our investment in the Ethiopian Stock Exchange, which represents a significant milestone in our expansion strategy.
“Ethiopia is one of Africa’s fastest-growing economies, with immense potential for investment and growth.
“We believe that by partnering with the Ethiopian Stock Exchange, we can leverage our expertise and experience to contribute to the development of a robust and dynamic capital market in Ethiopia.”
Also speaking, the chief executive of ESX, Mr Tilahun Esmael Kassahun, said, “We are thrilled to announce that the capital raise for Ethiopia’s first securities exchange has exceeded our expectations, reflecting the unwavering confidence of investors in the potential and prospects of Ethiopia’s economic landscape.
“We are pleased to welcome the NGX Group as a strategic partner, building upon the existing support we have received from the NGX Group.”
