The Nigerian Exchange Group (NGX) has invested in Ethiopia’s first-ever stock exchange (ESX); the amount involved in the deal is undisclosed.
ESX was established in 2023, where the Government of Ethiopia owned about 25% of public shareholding through Ethiopian Investment Holdings (EIH) as the main shareholder, and the remaining 75% was private shareholding. Its fundraising campaign has raised ETB1.51 billion ($26.6 million), exceeding the initial target by ETB879 million ($15.53 million).
Ethiopia’s Prime Minister Abiy Ahmed aimed to liberalize and modernize Ethiopia’s economy, and he pushed for ESX to launch to raise $11.07 million last year, which its launching was scheduled to hold in 2024.
According to a post on X, ESX’s CEO, Tilahun Kassahun, stated: “We are thrilled to have exceeded all our expectations in terms of the capital raise and are excited by the overwhelming confidence shown by investors in the long-term prospects of both ESX.”
NGX Group, FSD Africa, and Trade and Development Bank Group are some of the top investors who invested in ESX to get the stock market up and running. NGX is the Nigerian Stock Exchange that deals with financial services, while FSD Africa is a non-profit organization supported by the UK government. Trade and Development Bank Group is linked to a trade organization called Common Market for Eastern and Southern Africa (COMESA).
“Strategic foreign investments by TDB, FSD Africa, and [the] NGX Group are particularly important in allowing the transfer of technical know-how and best practices as well as other areas of long-term strategic value that we will explore,” the CEO said.
ESX concluded the capital raise with contributions from local investors in Ethiopia, including commercial banks, insurance companies, and private businesses.
Along with these developments, ESX has completed the technical evaluation to choose its technology provider, and drafted the Exchange Rulebook for public comment, marking a significant step toward operationalizing the Exchange’s trading, and announced plans to educate investors and issuers in the months ahead of this momentous occasion for the Ethiopian economy.
