AELP admits BSE
Staff Writer | Tuesday June 7, 2022 06:00
The AELP is a co-initiative of ASEA and the African Development Bank (AfDB) who are the sponsors of the project. The Project is designed to facilitate cross-border investment flows and investor participation through increased liquidity and securities trading activity on the African stock exchanges. In addition, the AELP is also expected to improve its capacity for regulatory and policy formulation and standards harmonisation for cross-border securities trading and settlement.
Lastly, the project is expected to lead to innovation in services and investment products, improve knowledge-sharing and make it possible to establish real business partnerships among stakeholders leading to greater financial market integration across Africa.
The BSE admission follows the second phase of the project after the initial phase created linkages among seven African capital markets that represent about 90% of Africa’s market capitalisation being: Nairobi Securities Exchange (NSE), Johannesburg Stock Exchange (JSE), Casablanca Stock Exchange (CSE), The Nigerian Stock Exchange (NiSE), Stock Exchange of Mauritius (SEM), The Egyptian Exchange (EGX) and Bourse Régionale des Valeurs Mobilières (BRVM). To be admitted into the Project, the BSE followed a rigorous application process for admission where the Exchange had to demonstrate, and successfully so, its legal authority and ability subject to its local laws and regulations to meet the required provisions.
Commenting on this milestone, the BSE CEO, Thapelo Tsheole said the AELP is a transformational initiative that is set to revolutionise and harmonise the trading of securities amongst participating exchanges in the Sub-Saharan Region hence why BSE decided to join the original seven participating exchanges to stimulate easier cross-border trading in the local market and similarly, also provide a gateway to other regional markets for local investors. “As a key strategic initiative by ASEA, I am confident that will have a positive effect on liquidity levels across African markets and lastly, this will serve as a value proposition to attract investment inflows into Africa,” he said.