By Adedapo Adesanya
The African Exchanges Linkage Project (AELP), a brainchild of the African Development Bank (AfDB) and the African Securities Exchanges Association (ASEA), has officially launched an e-platform (The AELP Trading Link) that will enable seamless cross-border securities trading among seven African stock exchanges representing 2,000 companies with roughly $1.5 trillion market capitalization.
The AELP Link Trading Platform incorporates stock market integration, an order routing system, and market and order-book data sharing. It is achieved through a grant from Korea-Africa Economic Cooperation Trust Fund (KOAFEC), with the AfDB funding ASEA’s phased rollout of the project.
In a statement, it was revealed that the launch took place on Wednesday on the sidelines of the ongoing ASEA 2022 Annual General Meeting and Annual Conference in Abidjan, Cote d’Ivoire.
Executives from African stock exchanges, the African Development Bank, institutional investors, stockbrokers, and the investor community attended the launch.
The first phase of the AELP will connect seven stock exchanges across 14 African countries: Morocco, Egypt, Nigeria, Kenya, Mauritius, South Africa, and the West Africa Economic and Monetary Union, which comprises Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo. The AELP Trading Link went live on November 18, following a beta testing period. The system is being deployed in partnership with DirectFN Ltd.
Speaking on the development, Mr Edoh Kossi Amenounve, ASEA’s President, said, “With AELP, we are entering a new era of African capital markets where all our members will gradually transact cross-border trades from one African securities exchange to another. This project represents a great opportunity for investors and issuers across the continent.”
AELP also provides training programs targeting financial market practitioners on cross-border investment practices and investment rules across the participating markets. Capacity-building programs have benefitted financial market regulators, stockbrokers/security dealers, custodians, central bankers, and other stakeholders.
AfDB and ASEA have also jointly supported the establishment of the African Stockbrokers and Securities Dealers Association as a pioneering pan-African platform for collaboration between security dealers on capital markets integration and financial products innovation.
Adding his input, AfDB’s Manager for Capital Markets Development, Mr Ahmed Attout, said: ‘It is our pleasure to partner with ASEA through this process culminating in the operationalization of the African Exchanges Linkage Project Link Trading Platform.
“The AELP is a transformational project that aligns with the African Development Bank’s High 5 priorities, especially Industrialize Africa and Integrate Africa. It is also in tandem with the African Continental Free Trade Agreement’s objective of establishing a liberalized market to aid the movement of capital, facilitate investments and deepen the continent’s economic integration.”
Modupe Gbadeyanka