Zemen Insurance Takes Stake in Ethiopian Securities Exchange

Zemen Insurance SC (ZISC) has joined the Ethiopian Securities Exchange (ESX) as an investor, becoming the first private insurance company in the country to buy a stake in the nascent bourse.

The Exchange welcomed ZISC’s equity commitment of 20 million birr on Friday, saying it “marks a significant milestone for the Ethiopian financial sector.”

“We’re excited to have Zemen Insurance on board and look forward to a successful collaboration,” the Exchange stated.

The Government owns 25% of the ESX and offers the other 75% of the bourse with issued share capital of about 900 million birr for domestic and foreign investors.

The Securities Exchange officially started a roadshow to raise capital in May, last year.

ZISC is now the sixth private financial institution to acquire stakes in the Exchange after Zemen, Siinqee, Global Ethiopia, Awash, and Hibret banks, making them

The acquisition makes them a part of the founding stakeholders in the Exchange which aims to raise a total of 625 million Birr funding from the private sector.

It already secured funding of 275 million Birr from the Ethiopian Investment Holdings (EIH), the nation’s sovereign wealth fund, and four of its subsidiaries, ahead of Exchange’s launch later this year.

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