The African Exchanges Linkage Project (AELP) is a flagship project of the African Securities Exchanges Association (ASEA) and the African Development Bank (AfDB) to facilitate cross-border trading of securities in Africa.
In its initial phase, the Project aims to create linkages between 7 African capital markets that represent >90% of Africa’s market capitalization. Additional Exchanges have been onboard for Phase II of the project and ASEA will continue to onboard more Exchanges as it seeks to facilitate cross-order trading between all its Member Exchanges.
|1||Bourse Régionale des Valeurs Mobilières (http://www.brvm.org/)||Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo (WAEMU Region)|
|2||Casablanca Stock Exchange (http://www.casablanca-bourse.com/bourseWeb/en/index.aspx)||Morocco|
|3||The Egyptian Exchange (https://www.egx.com.eg/en/homepage.aspx)||Egypt|
|4||Johannesburg Stock Exchange (https://www.jse.co.za/)||South Africa|
|5||Nairobi Securities Exchange (https://ngxgroup.com/)||Kenya|
|6||Nigerian Exchange (https://ngxgroup.com/)||Nigeria|
|7||Stock Exchange of Mauritius (https://www.stockexchangeofmauritius.com/)||Mauritius|
|8||Botswana Stock Exchange (https://www.bse.co.bw/)||Botswana|
|9||Ghana Stock Exchange (https://gse.com.gh/)||Ghana|
Aims of AELP
AELP will improve the depth and liquidity of Africa’s capital markets and foster investment flows among the participating Exchanges by enabling:
- Cross-border securities trading using an order-routing system (AELP Link technology platform) to channel orders between Stockbrokers on participating Exchanges
- A Stockbroker sponsors the trade on the host Exchange
- Custody and settlement will be on the host Exchange according to its market rules and practice. Sponsoring broker and local custodian will be involved
- Live trading information among linked Exchanges and market participants
- Promote the African Listed Securities asset class and creating new products and securities on the linked Exchanges so that asset managers, stockbrokers, institutional investors and individual investors can identify investment opportunities across African markets
- Cross-border capital raising and Initial Public Offers (IPOs)
- Develop capacity between the Exchanges and boost collaboration between capital market Regulators, Central Banks and central depositories.
The African Securities Exchanges Association (ASEA)
ASEA is the premier association of 27 securities Exchanges in Africa that have come together with the aim of developing member Exchanges and providing a platform for networking. The Association was established in 1993, and works closely with member Exchanges to unlock the potential of the African capital market and African economies. ASEA seeks to position African capital markets as key enablers of economic recovery in Africa by the year 2025. See [[http://african-exchanges.org/en/about-asea]].
The African The African Development Bank (AfDB)
The AfDB [[https://www.afdb.org/en]] is a multilateral development bank and the premier financial development institution in the continent. There are 54 Regional Member Countries (RMCs) in Africa) and 28 non-regional member countries. The overarching objective of the AfDB Group is to spur sustainable economic development and social progress in its RMCs, contributing to poverty reduction. It achieves this by: mobilizing and allocating resources for investment in RMCs; and providing policy advice and technical assistance to support development efforts. It works in support of the Sustainable Development Goals. The Bank’s two main objectives are inclusive growth and transition to green growth and it focuses on five main channels: infrastructure development; regional economic integration; private sector development; governance and accountability; and skills and technology. The Group has proven expertise in human and economic development in Africa, with extensive experience in the development of the financial sector.