In a pioneering move for the Ethiopian insurance sector, Zemen Insurance has secured a significant stake in the upcoming Ethiopian Securities Exchange (ESX). The agreement, inked at the Zemen Insurance headquarters, marks a pivotal moment as the insurance industry ventures into the realm of stock exchange investment.
With an investment of 20 million birr, Zemen Insurance now holds a noteworthy two percent stake in the Exchange, provided that promoters adhere to the initial equity cap of one billion birr. This strategic move underscores Zemen’s commitment to diversifying its investment portfolio and capitalizing on emerging opportunities within the financial market.
Zemen’s foray into the ESX follows in the footsteps of Zemen Bank, which blazed the trail as the first financial institution to invest in the Exchange. The momentum has since surged, with other commercial banks such as Awash Bank committing substantial investments, injecting 70 million birr into the market.
Tilahun Kassahun (Ph.D.), CEO of the Exchange, expressed his appreciation for Zemen Insurance’s timely investment, emphasizing its significance as the Exchange nears the culmination of its capital-raising endeavors. With four state-owned enterprises and Ethiopian Investment Holdings (EIH) collectively holding a 25 percent stake in the Exchange, Tilahun and his team anticipate wrapping up equity offerings by the month’s end.
Source: The Reporter
