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The Nigerian Exchange Group (NGX) Plc is leveraging its six decades of experience to support the Ethiopian Securities Exchange (ESX), Ethiopia’s first-ever stock exchange, in a bid to foster stronger integration across African capital markets.
The ESX was officially launched in Addis Ababa over the weekend, marking a historic milestone in Ethiopia’s financial sector. As a strategic partner and investor in the ESX, the NGX Group aims to bring its expertise to shape the growth and success of the newly established exchange.
Ethiopian Prime Minister Abiy Ahmed described the launch as transformative for the nation’s economic modernization.
“Today, we officially rang 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,” Ahmed said.
Driving Integration and Innovation in Africa’s Markets
NGX Group’s Group Chief Executive Officer, Temi Popoola, emphasized the transformative potential of Africa’s capital markets and the need for stronger regional collaboration, public-private sector synergy, and innovative solutions to unlock the continent’s economic potential.
“The launch of ESX represents a pivotal moment for Ethiopia and the broader African financial landscape. ESX will serve as a crucial mechanism for capital formation and market liquidity, driving sustainable economic growth,” Popoola stated.
He highlighted that NGX Group’s involvement goes beyond traditional investment, focusing on ensuring ESX becomes a significant player in Africa’s financial ecosystem.
“Our partnership transcends traditional investment 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.
Popoola also underscored the importance of fostering a responsible market environment to attract both local and continental capital, with a vision for Ethiopia to emerge as a financial hub in Africa.
Leveraging Decades of Expertise
Drawing on six decades of experience, NGX Group is committed to sharing insights on diversifying financial instruments and expanding access to investment opportunities. According to Popoola, Ethiopia’s capital market has the potential to play a transformative role in economic development through a mix of innovation, policy support, and regional collaboration.
Chief Executive Officer of ESX, Tilahun Kassahun, expressed confidence in the partnership with NGX Group, highlighting the value of its expertise in guiding the growth of Ethiopia’s capital market.
“We are pleased to welcome NGX Group as a strategic partner, building upon the existing support we continue to receive from them,” Kassahun said.
Nigeria’s Stock Market Achievements
The Nigerian stock market has demonstrated strong performance in recent years, offering valuable insights for Ethiopia’s market development.
- The All-Share Index (ASI) delivered a year-to-date return of 2.45% as of this weekend, reflecting a net capital gain of ₦1.54 trillion.
- In 2024, the market posted a 37.65% return, ranking among the world’s top-performing markets.
- High-profile listings, such as Geregu Power Plc and BUA Foods, have fueled significant growth, with market capitalization soaring from ₦12.79 trillion in 2019 to ₦62.76 trillion by the end of 2024.
NGX Group’s commitment to innovation and market development has been instrumental in positioning Nigeria’s capital market as a global leader, setting a strong precedent for its collaboration with Ethiopia’s ESX.
As Ethiopia embarks on this transformative journey, NGX Group’s support will play a crucial role in shaping a resilient, inclusive, and innovative financial market that aligns with Africa’s broader economic aspirations.
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