Nigeria bourse buys 5% stake in Ethiopia Securities Exchange
“Through strategic partnerships and investments, NGX Group aims to facilitate cross-border investment flows, enhance liquidity and promote economic development across the continent,” the Lagos bourse said. The investment in ESX “reflects NGX Group’s confidence in the potential of Ethiopia’s rapidly growing economy and capital market,”
Nigerian Exchange Group Plc acquired a 5% shareholding in Ethiopian Securities Exchange as it seeks to expand capital-market activities in East Africa and across the continent.
The Lagos-based company known as NGX made the investment alongside institutional investors including FSD Africa and Trade and Development Bank Group during a capital-raising exercise by the Ethiopian exchange or ESX, the Nigerian firm said by email, without mentioning how much it invested.
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“The percentage shareholding could potentially increase to 10%” if approved by the Nigerian bourse’s board, it said.
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NGX converted to an organization held by shareholders in 2021 from a mutual company owned by stockbrokers and subsequently listed its shares on the 151-member NGX All Share Index to boost access to funding and expand its capital-market operations locally and on the continent.
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“Through strategic partnerships and investments, NGX Group aims to facilitate cross-border investment flows, enhance liquidity and promote economic development across the continent,” the Lagos bourse said. The investment in ESX “reflects NGX Group’s confidence in the potential of Ethiopia’s rapidly growing economy and capital market,” it said.
Following the capitalization of the Ethiopian exchange, the government of the East African nation retained 25% of the firm’s shareholding, according to NGX.
Source:norvanreports
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