Just a month after joining the African Exchanges Linkage Project (AELP), the Egyptian Exchange (EGX) received a mission from the African Development Bank (AfDB) to foster greater integration of securities trading in Africa.
The ALEP project, a co-initiative of African Securities Exchanges Association (ASEA) and AfDB, was designed to facilitate cross-border trading and settlement of securities across all stock exchanges in Africa.
EGX along with Nairobi Securities Exchange, Nigerian Stock Exchange, Johannesburg Stock Exchange, Stock Exchange of Mauritius, Casablanca Stock Exchange and Bourse Regionale des Valeurs Mobilieres (for the West African Union) are the participating bourses that will be linked in the first phase of the project.
The seven bourses represent 90 percent of Africa’s stock market capitalization.
Speaking with delegates from AfDB, EGX Executive Chairman, Mohammed Saleh, noted that requirements for the launch of an electronic platform to link all brokerage firms in securities across the continent has been completed.
Saleh disclosed that the bourse has informed brokerage firms about the initiative and enlightened them on how to participate to maximize benefits and create a value chain for the securities industry.
“Meeting with the Bank mission in Cairo was crucial to speed up the process of preparing a comprehensive study on key determinants of activating the initiative and starting the discussion between stock exchanges and brokerage firms.” said the EGX’s chief, Saleh.
He averred that the project will elevate the number of securities offered for investment and provide a variety of investment options for all investment in African stock exchanges.
Emmanuel Diarra, Manager of Capital Market Development Division at AfDB, said the integration of African financial system is germane to the Bank’s Regional Integration Strategy.
Diarra stated that the Bank supports African bourses by providing a platform for broader collaborative engagements among stakeholders in the financial sector.
During the two-day mission, the Bank delegation also met other key stakeholders including the Central Bank of Egypt, the Egyptian Capital Market Association, Egyptian Investment Managers Association and Egyptian Society of Technical Analysts.
ALEP is the continent’s most optimistic capital market integration initiative at the moment.
The project focuses on ways to boost Pan-African investment flows, promote an innovation that supports the diversification needs of investors in the continent, and help resolve the low level of depth and liquidity in the continent’s financial markets.
The ALEP is supported by a grant from the Korea-African Cooperation (KOAFEC) Trust Fund.
Other African stock exchanges will be included in later phases of the project.
ISRAEL ODUBOLA
