Abena Amoah, the Managing Director of the Ghana Stock Exchange (GSE) has renewed commitment to create a single African Securities Market after the first phase of the project saw the linkage of seven exchanges on the continent.
The Initiative which is known as the African Exchanges Linkage Project (AELP), is being championed by the African Securities Exchanges Association (ASEA) and supported by the African Development Bank.
The project seeks to foster the integration of African capital markets, promote liquidity, and enhance access to capital for businesses and investors across the continent.
The first phase, which was a pilot, saw the onboarding of the Johannesburg Stock Exchange; Stock Exchange of Mauritius; Egyptian Stock Exchange; Nigerian Stock Exchange; BRVM; Nairobi Stock Exchange; and the Casablanca Stock Exchange unto the single market platform.
The first seven exchanges which were on boarded had a total of 1500 listed companies with a market capitalisation of US$1.5 trillion.
When fully completed, the platform would see the linkage of over 30 stock exchanges in Africa, with a combined listed companies of over 2000 and a market capitalisation of US$2 trillion.
Meanwhile, the second phase of the project would see the Ghana Stock Exchange, the Botswana Stock Exchange and six other exchanges joining the platform by end of 2023.
Funding to Commence the Second Phase of the Project
The President of ASEA, Thapelo Tsheole, speaking at a workshop to sensitise Ghanaian securities stakeholders in Accra, said the association has received funding from the Afreximbank to commence the second phase of the project.
“We are looking at bringing in eight more exchanges by end of the year or early next year, Ghana and Botswana have already joined and we are in the process of facilitating the connection.”
Thapelo Tsheole
Thapelo Tsheole said it is very crucial that Ghanaian stakeholders understood the concept and the opportunities it came with.
“It is no longer a dream so you need to take the opportunity early and not be left behind. The African trade story is moving very fast and you must not be left out.
“There are more than 30 brokers that have subscribed to the project and when the project takes shape in Ghana, we hope that the Ghanaian brokers will be quick in onboarding.”
Thapelo Tsheole
Thapelo Tsheole disclosed that the association has recently signed a memorandum of understanding with the Pan African Payment and Settlement System (PAPSS) to facilitate the payment of trades on the AELP platform.
“This week, I had the opportunity to meet with the AfCFTA Secretary General and the plan is that we will design a framework in which we can work together.”
Thapelo Tsheole
Thapelo Tsheole noted the association would continue to advocate the development of African capital markets, capacity building and market development initiatives across the continent.
Onboarding of the GSE onto the Single Market Platform
The Managing Director of the Ghana Stock Exchange, Abena Amoah, on her part, said the onboarding of the GSE onto the single market platform would provide huge opportunities for both Ghanaian investors and businesses.
With a total of 2000 listed companies, Abena Amoah said Ghanaian investors would have the opportunity of buying shares in some of the biggest companies on the continent.
Abena Amoah indicated that Ghanaian companies could also tap into the US$2 billion market capitalisation to raise the needed funds for their businesses.
“The AELP seeks to integrate the exchanges in Africa and this will enable a broker in Ghana to buy securities in other African countries.
“We are seeking to bring our markets together on one platform so that the over 2000 companies that are listed on more than 30 security exchanges create one market for investors.”
Abena Amoah
Abena Amoah said it was for this reason that the GSE has set off to sensitise the brokers, exchange commission, depository and all relevant stakeholders on what it would take to successfully implement the project.
“The market we want to see is one where an investor has a view of securities listed all over Africa and through their broker can plug in and buy securities anywhere.”
Abena Amoah
This is the latest unification idea of the African continent which will help the continent’s stock markets to match the strength of other European markets.
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