East Meets West: Ghana and Kenya Link Stock Markets, Facilitate Intercontinental Trade
Kenya, Nairobi – To take advantage of growth on the African continent, both Kenya and Ghana have linked stock/stock exchanges to allow cross-trading of stocks and bonds from pairs of jurisdictions.
This new link between the Nairobi Stock Exchange (NSE) and the Ghana Stock Exchange (GSE) was facilitated by SecondSTAX, a fintech that aims to link Africa’s capital markets together.
Through this new portal, investors from both countries will be able to trade from either party in a long-term plan set to include retail investors.
Geoffrey Odundo – NSE CEO says the new move is key to driving market liquidity and trading growth, as well as options for investors in Kenya and Ghana .
“These links are good because they create a bigger market in Africa and enable cross-border trading. Ghanaian investors who want to trade in Kenya will have a straight-through process.” said Odand.
Krestel Capital – Brokerage firm selected to support trading orders from the Kenyan side.
The new partnership comes ahead of the implementation of the African Exchanges Partnership Project (AELP), which is scheduled to start on December 7th.
The Linkage Program will bring together prominent exchanges on the continent, including the NSE, Johannesburg Stock Exchange (JSE), Nigeria Stock Exchange, Mauritius Stock Exchange, Egypt Stock Exchange and Casablanca Stock Exchange.
The program also includes the Bourse Regionale des Valeurs Mobilieres, which brings together exchanges in Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal and Togo.
The project is a joint initiative of the Association of African Stock Exchanges (ASEA) and the African Development Bank (AfDB).
Meanwhile, neighboring Rwanda, Uganda and Tanzania will link their stock exchanges in a World Bank-funded project, making the three operate a single market.
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