By Peter Egwuatu
DESPITE the low depth and liquidity in Africa’s financial markets, Nigerian Stock Exchange, NSE, and five other stock exchanges now account for 80 percent of the Africa’s stock market capitalsation.
The Chief Executive Officer, NSE, Mr Oscar Onyema, disclosed this at the African Exchanges Linkage Project, AELP, roundtable meeting on the sidelines of the 22nd Annual ASEA conference hosted by the NSE in Lagos last week.
AELP is a co-initiative of ASEA and the African Development Bank, AfDB, to enable and facilitate cross-border trading in and settlement of securities across participating exchanges in Africa.
Onyema stated: “The AELP will, in its initial phase, create linkages between six African capital markets that represent 85 percent of Africa’s market capitalization. The participating Exchanges are: Nigerian Stock Exchange, NSE; Nairobi Securities Exchange, NSE; Johannesburg Stock Exchange, JSE; Casablanca Stock Exchange, CSE; Bourse Régionale des Valeurs Mobilières SA, BRVM; and Stock Exchange of Mauritius, SEM.”
According to Onyema, “The project in November 2018, received a grant of USD 980,000 from the Korea-Africa Economic Cooperation, KOAFEC, fund via the Africa Development Bank, AfDB.”
Commenting, Emmanuel Diarra, Manager, Capital Markets Division, African Development Bank, AfDB, said: “Pan African integration of financial markets is of priority for the AfDB. As a co-initiator of the AELP along with ASEA, we are committed to supporting ASEA through the implementation of the AELP and we look forward to working with ASEA to comply with the requirements of the Bank and KOAFEC in order to execute quickly.”