Leading Nigerian integrated market infrastructure group in Africa, the Nigerian Exchange Group (NGX), has announced strategic investment in the Ethiopian Securities Exchange (ESX).

Chairman of the NGX Group,
Alhaji Umaru Kwairanga, who made the announcement in a statement, said the pivotal move would not only mark the group’s entry into the East African market but also “underscores its commitment to driving growth and innovation in the African capital markets, while strategically positioning itself as the largest foreign institutional investor in the ESX.”

He noted that the “investment in the ESX reflects NGX Group’s confidence in the potential of Ethiopia’s rapidly growing economy and capital market.”

“By partnering with ESX, NGX Group aims to support the development of a vibrant and resilient financial ecosystem in Ethiopia, fostering increased investor participation and capital formation.

“Through this investment, NGX Group aims to contribute to robust regulatory frameworks and foster best practices within the ESX ecosystem.

”We extend our congratulations to the ESX on its successful capital raise and commend the Government of Ethiopia and the private sector for their support in bringing this pioneering initiative in the country to fruition.

“Our partnership with ESX is a resounding affirmation of our unwavering dedication to promoting economic development, transparency, and exemplary corporate governance standards that foster an environment conducive to inclusive growth, even as we aim to maximize value for our esteemed shareholders.

“The Group remains dedicated to providing ongoing technical assistance and capability enhancements to support the successful operations and growth of the ESX,” the NGX Chairman said.

Also speaking on the partnership, Temi Popoola, Group Managing Director/CEO of NGX Group, said:

“We are excited to announce our investment in the Ethiopian Stock Exchange, which represents a significant milestone in our expansion strategy. Ethiopia is one of Africa’s fastest-growing economies, with immense potential for investment and growth.

“We believe that by partnering with the Ethiopian Stock Exchange, we can leverage our expertise and experience to contribute to the development of a robust and dynamic capital market in Ethiopia.”

Tanzania’s auto-tech startup, Spana, has developed a mobile application for a bouquet of automobile services, enabling individual car owners and businesses to request auto diagnostic checks, vehicle servicing, and repairs, or subscribe their vehicles to annual routine maintenance, according to co-founder and CEO, Julius Mbungo.

Mbungo who made the boast in an interview on Wednesday, said the startup which was founded in late 2023 by himself, Ebenezery Kimaro, and John Mwapinga, allows “users to access reliable mechanics, their car’s maintenance history, track expenses, and receive service reminders, among other things.”

In the interview, Mbungo said before coming up with the startup, he had, in 2022, conducted a survey of car owners, mechanics and garage owners to learn about how car owners access services for their cars and the challenges they face when it comes to dealing with mechanics.

“We talked to more than 800 people, and the results were astonishing. Eighty per cent weren’t very happy with existing solutions, and those who were at least satisfied complained about the rip-off from some of the service providers,” he stated.

“Tanzania, like most Sub-Saharan African countries, is a used-car dominated market, by a ratio of 90:10, where cars as old as 20-years still find their way onto the roads.

“The used cars are powered by after-market spare parts where most are fake, leading to frequent breakdowns and car owners spending four times more on maintenance. There’s also a lack of expertise and modern tools,” Mbungo said.

He emphasized that “Spana is on a mission to provide efficient, affordable, and transparent auto repair and maintenance, combating counterfeit spare parts.”

“We want to foster a vehicle maintenance culture in Tanzania, helping customers with repairs and spare part procurement along the way.

“We want to prolong the longevity of Tanzanians’ vehicles and keep our roads and people safe.

“Since our inception, we have 30 workshops registered on our platform, and 180 mechanics, with over 1,000 cars registered.”

He stressed that the platform currently operates in two Tanzanian cities – Dar es Salaam and Arusha – with plans to expand to Dodoma and Zanzibar later this year.

“But we are looking forward to adding more services on the platform, such as vehicle insurance and vehicle repair loan,” Mbungo added.