African Exchange Linkage Project to link 7 African capital markets with $1.5trn market capitalisation

By Cynthia Ezekwe

 

The African Exchange Linkage project(AELP), a joint initiative of the African Development Bank (AfDB) and the African Securities Exchanges Association (ASEA) has launched an e-platform called the AELP Trading link, to enable seamless securities trading among seven African stock exchanges, that represents 2,000 companies, worth $1.5 trillion market capitalisation.

The project, launched during the recently conducted annual general meeting of African Securities Exchanges Association, in Abidjan,Côte d’Ivoire, was graced by executives from African stock exchanges, the African Development Bank (AfDB), institutional investors, stockbrokers, and the investor community.

AELP, since inception, provides training programmes targeting financial market practitioners on cross-border investment practices, and investment rules across the participating markets. Capacity-building programs have benefitted financial market regulators, stockbrokers / security dealers, custodians, central bankers, and other stakeholders

Speaking on the relevance of the newly launched product,Edoh Kossi Amenounve,  ASEA’s president said,’’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.’’

Also speaking, Ahmed Attout, AfDB’s manager for capital markets development said,’’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, he explained, is a transformational project that aligns with the African Development Bank’s high five priorities, especially in terms of industrialising and integrating Africa.  He added that the project is also in line  with the African Continental Free Trade Agreement’s objective of establishing a liberalised market to aid the movement of capital, facilitate investments and deepen the continent’s economic integration.

The Trading Link  which went live on 18 November following a beta testing period, is being deployed in partnership with  DirectFN Ltd.

AELP Platform also incorporates stock market integration, an order routing system, and market and order-book data sharing, which  will connect seven stock exchanges across 14 African countries including; Morocco, Egypt, Nigeria, Kenya, Mauritius, South Africa.   It also includes  the West Africa Economic and Monetary Union, which comprises Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo.