Nairobi — Investors at the Nairobi Securities Exchange(NSE) will now be able to trade in seven stock exchanges across 14 African countries having access to over 2,000 companies with roughly USD1.5 trillion market capitalization.
This is after the African Exchanges Linkage Project (AELP) unveiled an e-platform (The AELP Link), enabling seamless cross-border securities trading among the seven African stock exchanges.
The first phase of the AELP will connect stock exchanges in Morocco, Egypt, Nigeria, Kenya, Mauritius, South Africa, and the West Africa Economic and Monetary Union, which comprises Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo.
The AELP Link Trading Platform incorporates stock market integration, an order routing system, and market and order-book data sharing.
AELP is a joint initiative of the African Securities Exchanges Association (ASEA) and the African Development Bank.
Through a grant from Korea-Africa Economic Cooperation Trust Fund (KOAFEC), the Bank is funding ASEA’s phased rollout of the project.
“With AELP, we are entering a new era of African capital markets where all our members will gradually transact cross-border trades from one African securities exchange to another. This project represents a great opportunity for investors and issuers across the continent,” said Edoh Kossi Amenounve, ASEA’s President.
The AELP Trading Link went live on 18 November following a beta testing period. The system is being deployed in partnership with DirectFN Ltd.
AELP also provides training programs targeting financial market practitioners on cross-border investment practices, and investment rules across the participating markets.
“It is our pleasure to partner with ASEA through this process culminating in the operationalization of the African Exchanges Linkage Project Link Trading Platform. The AELP is a transformational project that aligns with the African Development Bank’s High 5 priorities, especially “Industrialize Africa” and “Integrate Africa,” said The African Development Bank’s Manager for Capital Markets Development, Ahmed Attout.
The move is in tandem with the African Continental Free Trade Agreement’s objective of establishing a liberalized market to aid the movement of capital, facilitate investments and deepen the continent’s economic integration.