East Meets West: Ghana and Kenya Link Stock Markets to Boost Continental Trade
NAIROBI, Kenya- In a bid to leverage Africa’s continental growth, Kenya and Ghana have linked their stock/securities exchange allowing for cross-trading of stocks and bonds from the pair of jurisdictions.
This new link between the Nairobi Securities Exchange (NSE) and the Ghana Stock Exchange (GSE) has been facilitated by SecondSTAX, a fintech that seeks to interconnect African capital markets.
Through this new portal, investors from both countries will be able to trade from either side with long-term plans aimed at including retail investors.
Geoffrey Odundo – The Managing Director of NSE has called the new move key to propelling market liquidity and trading growth, as well as options for investors in Kenya and Ghana.
“These links are good because they will create a bigger market in Africa and enable cross-border trade. Investors in Ghana who wish to trade in Kenya will have a straightforward process,” Odundo said.
Krestel Capital – a stock brokerage firm has been chosen to support trade orders on the Kenyan side.
The new link comes ahead of the implementation of the Africa Exchange Links Project (AELP) which is expected to go live on December 7.
The linkage program is expected to bring together notable stock exchanges on the continent including the NSE, Johannesburg Stock Exchange (JSE), Nigeria Stock Exchange, Mauritius Stock Exchange, Egyptian Stock Exchange and Casablanca Stock Exchange.
The program also includes the Bourse Régionale des Valeurs Mobilières which brings together the stock exchanges of Benin, Burkina Faso, Côte d’Ivoire, Guinea Bissau, Mali, Niger, Senegal and Togo.
The project is a joint initiative of the African Securities Exchanges Association (ASEA) and the African Development Bank (AfDB).
Meanwhile, neighboring Rwanda, Uganda and Tanzania are set to link their stock exchanges under a World Bank-funded project that will see the three tap into a single market.
GAROWE ONLINE
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