Move to create single African securities market on course: GSE, others to be linked soon
The project to create a single African Securities Exchange market is on course after the first phase of the project saw the linkage of seven exchanges on the continent.
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The first phase, which was a pilot, saw the onboarding of the Johannesburg Stock Exchange; Stock Exchange of Mauritius; Egyptian Stock Exchange; Nigerian Stock Exchange; BRVM; Nairobi Stock Exchange; and the Casablanca Stock Exchange unto the single market platform.
The first seven exchanges which were on boarded had a total of 1500 listed companies with a market capitalisation of US$1.5 trillion.
When fully completed, the platform would see the linkage of over 30 stock exchanges in Africa, with a combined listed companies of over 2000 and a market capitalisation of US$2 trillion.
Known as the African Exchanges Linkage Project (AELP), this is an initiative by the African Securities Exchanges Association (ASEA) and supported by the African Development Bank.
The project seeks to foster the integration of African capital markets, promote liquidity, and enhance access to capital for businesses and investors across the continent
The second phase of the project would see the Ghana Stock Exchange, the Botswana Stock Exchange and six other exchanges joining the platform by end of 2023.
Funding from Afreximbank
At a workshop to sensitise Ghanaian securities stakeholders in Accra, the President of ASEA, Thapelo Tsheole, said the association has received funding from the Afreximbank to commence the second phase of the project.
“We are looking at bringing in eight more exchanges by end of the year or early next year, Ghana and Botswana have already joined and we are in the process of facilitating the connection,” he stated.
He said it was therefore very crucial that Ghanaian stakeholders understood the concept and the opportunities it came with.
“It is no longer a dream so you need to take the opportunity early and not be left behind. The African trade story is moving very fast and you must not be left out.”
“There are more than 30 brokers that have subscribed to the project and when the project takes shape in Ghana, we hope that the Ghanaian brokers will be quick in onboarding,” he stated.
MoU with PAPSS
He said the association has recently signed a memorandum of understanding with the Pan African Payment and Settlement System (PAPSS) to facilitate the payment of trades on the AELP platform.
“This week, I had the opportunity to meet with the AfCFTA Secretary General and the plan is that we will design a framework in which we can work together.
He said the association would continue to advocate the development of African capital markets, capacity building and market development initiatives across the continent.
Huge opportunities
The Managing Director of the Ghana Stock Exchange, Abena Amoah, for her part, said the onboarding of the GSE onto the single market platform would provide huge opportunities for both Ghanaian investors and businesses.
With a total of 2000 listed companies, she said Ghanaian investors would have the opportunity of buying shares in some of the biggest companies on the continent.
She said Ghanaian companies could also tap into the US$2 billion market capitalisation to raise the needed funds for their businesses.
“The AELP seeks to integrate the exchanges in Africa and this will enable a broker in Ghana to buy securities in other African countries.”
“We are seeking to bring our markets together on one platform so that the over 2000 companies that are listed on more than 30 security exchanges create one market for investors,” she stated.
She said it was for this reason that the GSE has set off to sensitise the brokers, exchange commission, depository and all relevant stakeholders on what it would take to successfully implement the project.
“The market we want to see is one where an investor has a view of securities listed all over Africa and through their broker can plug in and buy securities anywhere,” she said.
