The Nigerian Exchange Group Plc has invested in the newly established Ethiopian Securities Exchange, describing the investment as a vote of confidence in the development of Africa’s financial markets.
NGX’s investment in the Ethiopian Securities Exchange demonstrates its dedication to building Africa’s financial ecosystem and overall economic growth.
Temi Popoola, the Group Chief Executive Officer of NGX Group, spoke at the launch of ESX on January 10 in Addis Ababa and emphasised the potential of ESX for the financial ecosystem of Ethiopia and Africa. According to him, the exchange is a crucial tool for market liquidity, capital development, and long-term economic expansion.
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Needs for improved regional collaboration
To fully achieve the continent’s economic potential, Popoola stressed the necessity of improved regional cooperation, government-private sector synergy, and creative market solutions.
The significant investment made by NGX Group in ESX highlights its leadership in developing the capital market infrastructure of Africa.
Popoola elaborated on NGX Group’s investment justification, highlighting Ethiopia’s enormous market potential and the two countries’ common goal of promoting economic progress via innovation.
“Our investment in ESX transcends traditional parameters; “It is about ensuring that ESX evolves into a key player in Africa’s financial ecosystem, enabling cross-border investments and setting benchmarks for market development,” he said.
“The launch of ESX represents a pivotal moment for Ethiopia and the broader African financial landscape,” Popoola added. “ESX will serve as a crucial mechanism for capital formation and market liquidity, driving sustainable economic growth.”
Popoola also made comparisons to successful nations around the world, such as India, which has significantly transformed its economy by utilising its capital markets. He underlined how crucial it is to open markets responsibly in order to draw in both domestic and foreign investment. “By following this path, Ethiopia can become a financial hub in Africa,” he remarked.
Milestone in the country’s economic modernisation process
Prime Minister Abiy Ahmed of Ethiopia called the launch a turning point in the nation’s economic modernisation process.
While announcing the Exchange’s launch on X, the Prime Minister stated, “Today, we have officially rung the bell to launch the Ethiopian Securities Exchange, our nation’s first stock exchange. This is a call to global investors: Ethiopia offers immense potential, a fast-growing economy, and a clear trajectory toward shared prosperity.”
The Ethiopian Securities Exchange’s CEO, Tilahun Esmael Kassahun, expressed confidence in the collaboration with NGX Group.
“We are pleased to welcome NGX Group as a strategic partner, building upon the existing support we continue to receive from them,” he said.
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NGX’s expertise in shaping ESX’s growth
Additionally, Kassahun underlined the importance of NGX Group’s experience in influencing ESX’s expansion and prosperity.
Popoola offered advice on broadening access to investment options and diversifying financial instruments based on the 60 years of experience of NGX Group.
“With the right mix of innovation, policy support, and regional collaboration, Ethiopia’s capital market can play a transformative role in driving economic development and establish itself as a leader in Africa’s financial ecosystem,” Popoola concluded by affirming his confidence in ESX’s contribution to Africa’s economic growth.
NGX Group’s participation underscores the vital role that collaborations and pooled knowledge play in furthering Africa’s economic narrative, as the ESX is set to transform Ethiopia’s financial scene.