United Insurance Company (UNIC) has become the second private insurer to buy into the developing Ethiopian Securities Exchange (ESX). In a statement released on the ESX LinkedIn page, the exchange celebrated United's 30 million birr commitment, calling it a "crucial step" that helps finalize the capital raising process.
United follows in the footsteps of Zemen Insurance, which forged new ground last week as the first private insurance provider to purchase shares on the budding ESX. Zemen acquired a two percent stake worth 20 million birr.
While the state-owned Ethiopian Insurance Corporation was an earlier founding shareholder, Zemen paved the way for private insurers to participate in Ethiopia's nascent financial markets.
United's investment comes on the heels of other major private players establishing themselves on the ESX. Just last week, private bank Hibret Bank announced a 50 million birr stake.
Last month, Awash Bank reinforced its position as the top private investor with a 70 million birr transaction for a 7.7 percent stake, surpassing previous leaders Zemen Bank, Siinqee Bank and Global Bank.
