January 25, 2021 / 5:38 AM / EFG Hermes / Header Image Credit: EFG Hermes Securities
EFG Hermes, a leading financial services corporation in frontier emerging markets (FEM), announced recently that it is now ranked first on the Nairobi Securities Exchange and second by value traded on the Nigerian Stock Exchange, highlighting the significant strides made in both Sub-Saharan Africa's western and eastern financial hubs.
The Firm also ramped up execution capabilities across Sub-Saharan Africa, with shares worth USD 717.4 million changing hands in Kenya, USD 483.9 million in Nigeria, USD 33.6 million in Ghana, and USD 20.3 million in Tanzania, among others.
"We are exceptionally proud of the work we've put entering Sub-Saharan Africa, which has seen us essentially create two key financial hubs in the region in less than three years of operations. Our success today despite challenging circumstances is a testament to the long term view our firm has taken on the development of financial markets in Sub-Saharan Africa and the continued investment into our people, products and infrastructure on the ground," said Ali Khalpey, CEO of EFG Hermes Frontier. "With FEM stocks expected to come out stronger in the year to come, we're confident that we're in a position to capitalize on the allocation shift back into FEM, as well as the continued growth in domestic capital allocation to capital markets. We intend to further solidify our presence in Sub-Saharan Africa and gain further market share with new product launches".
The Firm deployed a calculated expansion strategy in Kenya that homed in on both the foreign and domestic institutional investor base, with market share doubling to 52%, significantly ahead of other players. The Firm is also gearing up to launch the first-of-its-kind online trading platform in the market, an extension of its EFG Hermes One trading application, through which we will target the high net worth and rapidly growing domestic retail market.
"We have worked hard to increase domestic penetration with local accounts and delivering outstanding services primarily due to the local knowledge, strength and perseverance of the team," said Muathi Kilonzo, Frontier Equity Sales & Head of Equities Kenya at EFG Hermes. "The launch of a Kenyan online trading platform in 2021, the first of its kind on the market, would firmly establish our positioning in the country and allow retail growth nationwide".
In Nigeria, EFG Hermes leveraged the significant strides taken in 2019 to reinforce its standing and traction with domestic and foreign institutional investors alike, ending the year with a market share close to 19.2%.
"Through what was undoubtedly a challenging year, including nationwide lockdowns that impacted economic activity and dwindling investor sentiment in FEM markets, the achievements made have been nothing short of laudable," said Lilian Olubi, CEO of EFG Hermes Nigeria. "We feel very proud not only of the accolades and rankings but of the confidence that our esteemed local and international clients have bestowed on us, entering the year ahead well positioned to capture new investments into Nigeria".
The success of the EFG Hermes Frontier team this year has allowed the division to garner several accolades, including being named the top Frontier Research House on the Institutional Investor 2020 poll for the third consecutive year, with key analysts ranking 2nd and 3rd individually. It was also awarded the titles of Best Brokerage Services Award by Africa Global Funds as well as Best Broker in Kenya and Best Broker in Nigeria by EMEA Finance African Banking Awards and broker of the year in Nigeria by the Business Day Awards. EFG Hermes ranked number one frontier market brokerage firm in the Extel Survey 2019 as well as the leading Africa (Ex-South Africa) Equities House by the Financial Mail in the same year, attesting to the success of its expansion into African markets.