United Insurance SC has joined the ESX as a founding member.
BusinessNews

United Insurance Invests 30min Birr in Securities Exchange

ADDIS ABABA – United Insurance SC has taken 30 million Birr worth share holding in the Ethiopian Securities Exchange (ESX).

This makes United the second private insurer in the country to join the Securities Exchange as an investor this week, next to Zemen Insurance SC.

The equity acquisition deal between United Insurance and the Exchange was concluded on Saturday.

The ESX, the first and only organized and regulated securities exchange, is raising capital ahead of its scheduled launch at the end of the current fiscal year.

“We are excited to share that the United Insurance company SC has joined us as a founding member, committing to invest 30 million Birr into the Ethiopian Securities Exchange,” disclosed the ESX.

“This investment is a crucial step as we finalize our capital raise process,” the Exchange added.

The ESX has three insurance companies, including the state-owned Ethiopian Insurance Corporation (EIC), onboard as founding members.

The Securities Exchange with issued share capital of about 900 million birr started a roadshow to raise capital last May.

The Exchange aims to raise 75% of the funding from the private sector and has already secured a significant amount of funding from private banks such as Zemen, Siinqee, Global Ethiopia, Awash, and Hibret.

Ethiopian Investment Holdings, the nation’s sovereign wealth fund, owns 25% of the ESX along with four of its four subsidiaries including the EIC.