NGX backs Ethiopian Securities Exchange

The Nigerian Exchange Group Plc has reinforced its commitment to advancing Africa’s capital markets through its investment in the newly launched Ethiopian Securities Exchange.

Speaking at the launch in Addis Ababa recently, Temi Popoola, the Group Chief Executive Officer of NGX Group, highlighted the potential of ESX for Ethiopia and Africa’s financial ecosystem. He described the exchange as a pivotal mechanism for capital formation, market liquidity, and sustainable economic growth.

Popoola emphasised the importance of regional collaboration, government-private sector synergy, and market solutions to unlock Africa’s economic potential.

“Our investment in ESX transcends traditional parameters; it is about enabling cross-border investments and setting benchmarks for market development,” he said.

Prime Minister of Ethiopia, Abiy Ahmed, described the launch as a milestone in the country’s journey toward economic modernisation.

Announcing the Exchange’s debut 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.”

Also, the CEO of the Ethiopian Securities Exchange, Tilahun Kassahun, lauded NGX Group as a strategic partner, noting that its expertise would be instrumental in shaping the Exchange’s growth and success.

“We are pleased to welcome NGX Group as a partner, building upon the existing support they continue to provide,” Kassahun said.

Drawing from NGX Group’s decades of experience, Popoola outlined the potential for diversifying financial instruments and expanding access to investment opportunities in Ethiopia. He urged the East African country to adopt innovation and responsible policies to position itself as a financial hub in Africa, drawing lessons from India’s capital market transformation.

Popoola concluded by expressing confidence in ESX’s role in Africa’s economic development, stating, “With the right mix of innovation, policy support, and regional collaboration, Ethiopia’s capital market can play a transformative role in driving economic development.”

The PUNCH reported that the Securities and Exchange Commission has encouraged government agencies and state-owned enterprises to list on the Nigerian Exchange Ltd.