ADVERTISEMENT

An integrated African stock markets could become a reality sooner than later; here's what you need to know

The African Securities Exchanges Association (ASEA) recently signed an agreement with UAE-based tech firm DirectFN, for the design and implementation of a software system that can facilitate cross-border stock trading.

An integrated African stock markets could become a reality sooner than later

Business Insider Africa understands that the contract is part of an implementation phase for the African Exchanges Linkage Project (AELP).

The ambitious project was conceived by ASEA in collaboration with the African Development Bank (AfDB). The main aim is to integrate seven African stock markets, whilst promoting cross-border stock trading and ensuring liquidity in African bourses.

Among the seven bourses the project aims to integrate are some of the continent's largest and best-performing stock exchanges. Checks by Business Insider Africa show that they have a combined market capitalisation of $1.25 trillion; about 90% of Africa's stock market capitalisation. See the bourses below:

ADVERTISEMENT
  1. The Nigerian Exchange
  2. Nairobi Securities Exchange
  3. The Johannesburg Stock Exchange
  4. The Egyptian Exchange
  5. Stock Exchange of Mauritius
  6. Casablanca Stock Exchange and
  7. Bourse Régionale des Valeurs Mobilières (which serves Togo, Mali, Niger, Senegal, Benin, Ivory Coast, Guinea Bissau and Burkina Faso)

While giving further insight into the scope of the AELP project, ASEA's President, Dr Edoh Kossi Amenounve, said:

“The facilitation of cross-border trading will open up the markets to a diverse portfolio and investment opportunities. Brokers and investors will be able to access a variety of asset classes in their markets of interest.”

Do note that in the meantime, four African stock markets are already successfully connected to the link trading terminal. These are the Nigerian Exchange, Cassablanca Stock Exchange, the Egyptian Exchange and Bourse Régionale des Valeurs Mobilières.

ADVERTISEMENT

Also note that the project is being funded with a $980,000 grant which was given by Korea-Africa Economic Cooperation Fund in 2018.

30 brokerage firms drawn from across the continent have been selected to by the managers of the afore-mentioned African stock exchanges to oversee the cross-border trades.

JOIN OUR PULSE COMMUNITY!

ADVERTISEMENT

Eyewitness? Submit your stories now via social or:

Email: eyewitness@pulse.com.gh

ADVERTISEMENT