Seven African Exchanges Work together to Address Depth and Liquidity in Markets

The African Securities Exchanges Association (ASEA) signed a contract to procure an order-routing system. The contract is for the design and rollout of the AELP Link technology platform for routing orders and trade confirmations between stockbrokers on the seven Exchanges participating in the pilot phase of the African Exchanges Linkage Project (AELP). The Supplier is DirectFN, a global IT firm experienced in capital markets solutions across the Middle East and many emerging and frontier markets.

The AELP is a joint initiative by ASEA and the African Development Bank (AfDB) aimed at unlocking Pan-African investment flows, promoting innovations that support diversification for investors, and addressing depth and liquidity in the markets.

With the AELP Link, investor orders in one market will be channelled by a domestic stockbroker to a stockbroker on the foreign market where the security is listed, to enter into that market for execution in the foreign market. African Listed Securities to be accessed through the AELP Link include all securities that are available for cross-border investors.

Equity investments available include Africa's most promising and profitable businesses as well as some global leaders among more than 1,050 companies listed. Investors will also buy or sell corporate and government bonds, Exchange Traded Funds (ETFs) and derivatives where these are listed on the participating exchanges and the sponsoring stockbroker provides access.

​Dr Felix Edoh Kossi Amenounve, President of ASEA and CEO of the BRVM, said: "We are excited with this big step towards free movement of investments across Africa and free flow of capital. Our aim is to open new opportunities for individual and institutional investors to invest productively into Africa's growth story. The Exchanges continue to support African enterprises and governments to raise long-term capital for African jobs, business growth, infrastructure and development".

The AELP exchanges are: Nigerian Exchange (NGX), Casablanca Stock Exchange, The Egyptian Exchange, Johannesburg Stock Exchange, Nairobi Securities Exchange, Stock Exchange of Mauritius and Bourse Regionale des Valeurs Mobilieres (stock exchange for the West African Economic and Monetary Union's eight West African countries).