Siinqee Bank has taken a significant step towards the realisation of the inaugural securities exchange by making a 50 million Br equity investment in the Ethiopian Securities Exchange (ESX). The agreement was signed last week between Neway Megerssa, president of Siinqee and Tilahun Kassahun, CEO of Exchange, at the Bank's headquarters on Tito St. Siinquee Bank, which transitioned from a microfinance institution to a full-fledged bank, has rapidly expanded its branch network, reaching 530 branches across the country in less than two years. As part of the deal, it becomes a five percent stakeholder in the paid-up capital of ESX, with the minimum equity investment set at 10 million Br. The equity investment in ESX follows a broader trend, with Zemen Bank being the first private commercial bank to invest in the exchange with a 47.5 million Br purchase last month. An initial 275 million Br was raised from four state-owned enterprises under Ethiopia's sovereign wealth fund, Ethiopian Investment Holdings and FSD Africa. Neway Megerssa highlighted the opportunity presented by the launch of capital markets, emphasising its potential to boost savings, increase capital, and enhance overall efficiency. He also noted that the establishment of capital markets would contribute to increased competitiveness among financial institutions.
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