Nigerian Stock Exchange NGX invests in Ethiopia Stock Exchange

Nigerian Stock Exchange NGX confirmed on Sunday that it had bought shares in the Ethiopia Stock Exchange, likely to be made fully operational later this year.

“We are excited to announce our investment in the Ethiopian Stock Exchange, which represents a significant milestone in our expansion strategy,” Temi Popoola, group managing director and chief executive officer (CEO) of NGX Group said.

However the Nigerian Stock Exchange did not disclose how much it had invested in the ESX. Ethiopian Security Exchange ESX, since its formation last year, has been launching roadshows and campaigns to attract local and international investors. ESX plans to sell 75% shares to private investors, retaining remaining 25%.

Last week, the Ethiopian Security Exchange ESX announced that it surpassed capital raise target for the establishment of the bourse. It announced to have raised $26.6 million while targeting $11.07 million.

Ethiopian government will reportedly maintain its 25% shares in ESX through five state owned companies. Ethiopian Investment Holdings (EIH) & four of its state-owned subsidiaries, Ethio Telecom, Ethiopian Shipping and Logistics Service Enterprise (ESLSE), Ethiopian Insurance Corporation (EIC), and Berhanena Selam Printing Enterprise, are the five corporations which pledged to contribute 25% of the over 900 million capital which ESX will have. Ethio Telecom is expected 10% of its share on the bourse.

Other notable foreign investors in Ethiopia stock exchange include Financial Sector Deepening Africa (FSD Africa), a non-profit financial institution backed by the UK government and focusing on sub-Saharan Africa. The Trade and Development Bank Group (TDB), the financial subsidiary of the Common Market for Eastern and Southern Africa (COMESA) trade bloc, is also a participant.

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