NAIROBI, Kenya April 27 – African countries are expected to begin cross-border trade in listed securities later this year, an official said on Tuesday.
Geoffrey Odundo, CEO of the Nairobi Stock Exchange (NSE), said eight African exchanges have been digitally connected to facilitate the buying and selling of listed shares and debt instruments.
“African countries have made good progress in harmonizing their securities trading rules and we expect to start cross-border trading this year,” Odundo said at the launch of the quarterly NSE Barometer.
The countries participating in the project are Kenya, Nigeria, Morocco, Egypt, Ivory Coast, Botswana, South Africa and Mauritius.
Odundo noted that cross-border trading allows an investor in one country to purchase securities listed in another country through their local stockbroker.
“Stock exchanges will be linked to ensure investors have visibility into capital market products across the eight African countries,” he added.
He added that cross-border trading is expected to increase the liquidity of African stock exchanges by expanding the pool of potential investors.