News & Events

Addis Ababa (Mar 27, 2024) -Nyala Insurance S.C (NISCO), a prominent insurance company in Ethiopia, has signed a subscription agreement with the Ethiopian Securities Exchange (ESX) to purchase 20 million Birr worth of shares.

NISCO's commitment to invest in the Ethiopian Securities Exchange demonstrates its dedication to fostering the growth of capital markets in Ethiopia. This commitment is part of ESX's founding members' investments, as detailed in the Information Memorandum along with Ethiopian Investment Holdings (EIH) and other subscribers.

At the signing ceremony at NISCO's Head Office, CEO of Nyala Insurance, Ato Yared, stated that the establishment of a Securities Exchange will expand investment opportunities for Ethiopians, providing alternatives for individuals and institutions looking to invest.

Ato Yared emphasized that Securities Exchange plays a crucial role in promoting financial stability, economic development, and job creation through efficient capital allocation.

“We have been eagerly anticipating the establishment of the Securities Exchange market due to its significant impact on economic growth and job creation." he expressed.

Ato Yared highlighted that the Securities Exchange market has significantly benefited the insurance industry in many ways, to mention few:

• Insurance companies can become major shareholders by investing in ESX as institutional investors.
• Insurers can be a listed- company in ESX, which can benefit them to easily access the required capital for their growth and expansion.
• There is also an opportunity to act as intermediaries in the exchange market.

Dr. Tilahun E. Kassahun, CEO of the Ethiopian Securities Exchange, welcomed NISCO as a founding member, stating that their investment decision is timely as ESX finalizes its capital raise process. He believes NISCO's participation will greatly benefit ESX and the development of Ethiopia's capital markets.

Dr. Tilahun highlighted that ESX will serve as the hub of Ethiopia's capital markets, offering equities, fixed income, money markets, and alternative markets. The establishment of ESX is set to provide investors with a dependable platform for capital allocation, driving economic growth in Ethiopia.

Established in 1995, Nyala Insurance S.C. has built a strong reputation for offering innovative insurance products tailored to the needs of the underserved segments of society based on their needs and demands. NISCO has seen significant growth, with paid-up capital of Br 1 billion and total assets of Bir 3.8 billion. The company operates through 49 service outlets in Ethiopia and is recognized for its strong financial performance and innovative product offering.

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