By our staff reporter

Zemen Bank has become the first institution to establish an agreement with the Ethiopian Securities Exchange (ESX) by acquiring ownership shares worth 47.5 million birr. This investment allows the bank to hold approximately 5% of the shares in ESX, meeting the minimum limit of 10 million birr required for investors as of January 11, 2024, according to ESX CEO Tilahun Kassahun.

Zemen Bank’s equity investment amounts to 47.5 million birr, which represents a 5% ownership share in the paid-capital of ESX. Alongside Ethiopian Investment Holdings (EIH), which initially invested in ESX, Zemen Bank will be joined by other investors who are expected to become shareholders in the coming months.

Dereje Zebene, CEO of Zemen Bank, expressed enthusiasm about partnering with ESX as one of their initial financial backers. He believes that ESX and the introduction of equity and debt markets will lead to transformative changes in Ethiopia’s financial sector. Zebene stated that Zemen Bank is honored to join ESX on this exciting journey.

Tilahun Kassahun, CEO of ESX, expressed delight at Zemen Bank’s decision to become a financial investor in ESX. He emphasized that Zemen Bank’s capital infusion is crucial as ESX is in the process of acquiring advanced trading solutions, hiring new staff, and undertaking other preparations for its operational launch.

While there are approximately 30 banks and 18 insurance companies in Ethiopia, it was the banks that purchased these stocks. It is expected that more banks and private investors will follow their example in the coming months.

ESX aims to raise a total of 625 million birr and has recently received an additional 275 million birr from four state-owned enterprises supported by Ethiopian Investment Holdings and FSD Africa.