An Investment Agreement between the Ethiopian Securities Exchange(ESX) and Zemen Bank SC will bring the launch of the ESX closer to realization, provides much need financial resources towards a first launch.
Zemen Bank, one of Ethiopia’s leading private banks, announced today a significant equity investment in the Ethiopian Securities Exchange (ESX), the first modern securities exchange under establishment in Ethiopia.
This investment reflects the Bank’s long-standing commitment to be at the forefront of major innovations and technological advancements taking place within Ethiopia’s financial services industry.
Zemen Bank’s equity investment will be in an amount of 47.5 million birr and is expected to be equivalent to a 5 percent ownership share in the paid-capital of ESX.
Alongside an initial investment provided to ESX by Ethiopian Investment Holdings (EIH), Zemen bank will be joined by other investors that are expected to sign on as shareholders over the coming months.
“We are thrilled to partner with ESX as one of their first set of financial backers” said Ato Dereje Zebene, CEO.
“ESX and the introduction of equity and debt markets will be transformative for the financial sector in Ethiopia, and we are thus pleased and honoured to be joining them on this exciting journey.”
“We are delighted by Zemen Bank’s decision to join ESX as a financial investor.” said Dr Tilahun E. Kassahun, CEO of Ethiopian Securities Exchange.
“The infusion of capital from Zemen Bank is coming at a critical time as we are in the process of purchasing cutting-edge trading solutions, making new staff hires, and undertaking various other preparatory activities to be able to launch our operations”, he added.
ESX will be at the center of a capital markets ecosystem that will soon include a stock market for both large and small companies, a bond market for private and public debt issuance, and a number of financial service providers such as investment banks, brokerage firms, and mutual funds.
ESX is expected to launch its operations in the third quarter of 2024
Zemen Bank SC is one of Ethiopia’s a leading financial services provider and has registered a steady growth over the past five years.
The Bank has increased its subscribed capital to 14.2 billion birr with 6.8 billion birr paid up capital.
The capital adequacy ratio as at June 2023 stood at 27.8 percent, more than three times the regulatory requirement of 8 percent.
During 2022/23 fiscal year, the Bank’s income and profits reached its highest levels of Birr 5.74 billion and 2.76 billion respectively.
During the same period the Bank’s deposit grew by 38 percent to reach 37.08 billion birr and Loans and Advances up by 48.6 percent hitting 31.39 billion birr.
