AfDB, African securities exchange collaborate to promote trans-border trading


The African Securities Exchanges Association (ASEA) and the African Development Bank (AfDB) Group have joined forces to increase the number of interconnected African exchanges from seven to 15.

In a statement, the AfDB announced that this expansion is part of the second phase of the African Exchanges Linkage Project (AELP).

The statement further revealed that both parties signed an agreement on June 28 to secure a $600,000 grant for the project.

The funds for the project will be sourced from the Korea African Economic Cooperation Fund (KOAFEC) Trust Fund, which is managed by the African Development Bank (AfDB).

The African Exchanges Linkage Project (AELP) is a collaborative effort between ASEA and the AfDB to connect African capital markets, promoting cross-border securities trading, enhancing liquidity, and providing diverse investment opportunities for investors.

During the second phase of the AELP, investors will gain access to over 2,000 securities listed on up to 15 capital markets. This will be facilitated through a cross-border securities trading platform designed to meet the requirements of regulators, central depositories, policymakers, and stockbrokers.

The participating stock exchanges include the Botswana Stock Exchange, where the grant signing ceremony took place, as well as the Ghana Stock Exchange and six other stock exchanges.

The grant will also support capacity building initiatives for institutional investors and capital market operators.

Thapelo Tsheole, President of ASEA and CEO of the Botswana Stock Exchange, expressed gratitude to the AfDB for their support and commitment to the development of African capital markets. He emphasized the importance of technical connectivity and linkage among African stock exchanges, aiming to establish a comprehensive pan-African network. The goal is to achieve full integration across Africa, benefiting investors, businesses, and governments throughout the continent.

Solomon Quaynor, the Vice President for Private Sector, Infrastructure, and Industrialization at the AfDB, signed the agreement on behalf of the bank group. He expressed the bank’s satisfaction in extending its partnership with ASEA for the second phase of the AELP.

Quaynor highlighted that the AELP has been instrumental in promoting regional integration through the linkage of African stock exchanges, resulting in a combined market capitalization of up to $1.3 trillion. He emphasized that the collaboration between the bank and ASEA aligns with the bank’s objective of leveraging institutional investor groups and capital market financing for infrastructure development and the real sector in regional member countries.

He further explained that the AELP’s objectives are in line with the African Union’s Agenda 2063 and the goals of the African Continental Free Trade Agreement. The aim is to establish a liberalized market that facilitates the movement of capital and investments and deepens economic integration across the continent. The project also supports the bank group’s strategic priority of integrating Africa as part of its High 5 agenda.

During the first phase of the AELP, which was supported by the AfDB and funded through a KOAFEC grant, an infrastructure interconnectivity platform was established involving seven stock exchanges and 31 stockbrokers. Additionally, over 1,000 capital market operators received training as part of the initiative.

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