Africa Development Bank (AfDB), through its Fund for African Private Sector Assistance (FAPA) Initiative, has partnered with Africlear Global in a $400,000 seed equity investment to enhance the efficiency of capital markets, by supporting the modernisation of central securities depository infrastructure in African securities markets.
Africlear Global, a company initiated by two African central securities depositories, which include the Central Depository and Settlement Corporation (CDSC) Kenya, and the Central Securities Clearing System Limited (CSCS) Nigeria, is sponsored by Altree Financial Group.
The investment in Africlear Global supports the improvement of the securities market infrastructure across Africa through the promotion of industry-leading technologies designed to enhance the efficiency of capital markets and to achieve better regulation across Africa.
The goal is also to ultimately lower the cost of investing in the debt and equity securities of African companies
Established to facilitate the diversification of revenue streams and cross-border investment flows, the partnership has the potential to drive new products, expand trading activity, offer value-added services and boost the ability to attract new foreign capital.
Africlear Limited will facilitate the development and adoption of new revenue generating asset-servicing programmes/applications by members based on their market needs, regulatory environment and timelines.
The company, which held its first board meeting in Nairobi recently, said the immediate benefits included improved access to a wider menu of comprehensive securities services, greater collaboration between countries, and more cost-effective pricing of securities market infrastructure.
While accepting the Board’s nomination as Africlear’s first chairperson, the CEO of CDSC, Kenya, Rose Mamba said “Africlear members will be able to realise significant cost savings via collective bargaining with industry participants and technology vendors.”
In the same vein, Kyari Bukar, CEO of CSCS who also is a board member of Africlear, believes that the company will accelerate process standardization and promote system integration across borders. According to Kyari, “by employing industry best practices, Africlear will facilitate improved levels of transparency and corporate governance within the African capital markets.” He said further that “this will enable local market practitioners to more effectively compete for domestic and international capital.”
“By delivering shared economies of scale, Africlear will enable its members to offer a greater menu of services ranging from corporate actions processing to collateral management to clearing and settlement,” a statement by Africlear said.
“Africlear supports an open market place where scale and connectivity serve as the company’s competitive strengths,” said Anthony Fischli, chairman of Altree Financial Group. Fischli added, “The AfDB investment in Africlear Global supports the improvement of securities market infrastructure through promotion of industry-leading technologies designed to enhance the underlying efficiency and overall functioning of the African capital markets.”
