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Continental Trade: Nigeria, Six Others to Link Stock Exchanges

Continental Trade: Nigeria, Six Others to Link Stock Exchanges

Seven African countries under the aegis of African Securities Exchanges Association (ASEA) are working toward integrating their stock exchanges by the first quarter of 2021 to boost securities trading in the continent. According to Global Financial Digest, the move will enable stockbrokers from Nigeria, South Africa, Morroco, Egypt, Kenya, Mauritius, and Ivory Coast stock exchanges to place orders on the other trading platforms directly from their base on the linked local bourses.

Already, the African Development Bank (AfDB) is providing funding to the tune of $1 million to help the take-off of this initiative. According to (ASEA) President, Karim Hajji the initiative was designed to improve the growth of the continent economy by positioning the African exchanges as the gateway for the development of the continent.

“We want to improve the contribution of capital markets to the growth of the continent and also position African exchanges as the gateway for the development of the continent,” Hajji said in an interview with Bloomberg. The International Finance Corporation (IFC) is funding a study of the potential for privatizing state-owned enterprises through partial listings on African stock exchanges, Hajji said.

Such listings, according to Hajji would boost capital-market development, raise funds for governments and the companies to carry out investment programs and broaden investor participation. “This initiative is supported by the African Development Bank (AfDB), which has contributed funding of up to $1 million, notably for the system that will help us connect the seven exchanges and also the project management officer who is already on board,” Hajji, who is also chief executive officer of the Moroccan stock exchange, said.

Source: https://nipc.gov.ng/2020/01/03/continental-trade-nigeria-six-others-to-link-stock-exchanges/?mc_cid=f0d2f39a3e&mc_eid=6f352ca795