Abidjan, July 30, 2021 : The possibilities of cross-border transactions from one African stock exchange to another have taken another step forward, after the African Association of Stock Exchanges (ASEA) signed a contract today to set up a listing platform. seven places African scholarship holders are working together in the implementation of the interconnection project African stock exchanges (AELP) to stimulate investment flows and provide more liquidity to African markets.
The contract covers the design and deployment of the technological platform AELP Link for routing stock exchange orders and confirming transactions between brokers on the seven stock exchanges participating in the pilot phase of the AELP.
The successful vendor is DirectFN, a world-renowned IT company experienced in providing financial market solutions across the Middle East and many emerging and frontier markets, which was successful following an appeal process. competitive offerings that attracted applications from leading international suppliers from 18 countries.
The AELP is a joint initiative of ASEA and the African Development Bank (AfDB) aimed at stimulating pan-African investment flows, promoting innovations that support diversification for investors and addressing the issue of depth and market liquidity. It is financed through a grant from the Korea-Africa Economic Cooperation Trust Fund (KOAFEC) managed by the African Development Bank.
Orders from investors in a market will be routed by a national broker via the AELP platform to a broker in the foreign market where the security is listed for execution on that market. Listed securities accessible via the AELP link include all securities available to cross-border investors.
Available equity investments include Africa’s most promising and profitable companies as well as some of the world leaders from over 1,050 listed companies. Investors will also buy or sell corporate and government bonds, index funds (ETFs) and derivatives when these are listed on participating stock exchanges and the sponsoring broker provides access.
The stock exchanges that are members of the AELP project are: the Casablanca Stock Exchange, the Egypt Stock Exchange, the Johannesburg Stock Exchange, the Nairobi Stock Exchange, the Nigerian Stock Exchange, the Mauritius Stock Exchange and the Regional Stock Exchange (BRVM) .
Dr Félix Edoh Kossi AMENOUNVE, President of ASEA and Director General of BRVM, said: ” We are delighted with this big step towards the free flow of investment across Africa and the free flow of capital. Our goal is to open up new opportunities for individual and institutional investors to invest productively in Africa’s growth. The scholarships continue to help African companies and governments to raise long-term capital for the job creation, business growth, infrastructure and development“.
Dr Walid Al BALLAA, Managing Director of DirectFN, said: “With innovative technology and a focus on bringing digital maturity in digital relationship building through the creation of the AELP-Link technology platform, DirectFN feels equally enthusiastic about helping to concretely achieve the objectives of the participating African scholarships and to enable the African ecosystem of capital markets to digitally create a positive impact on the global economy“.
About the African Association of Securities Exchanges (ASEA):
The African Association of Stock Exchanges (www.african-exchanges.org) is the premier association of stock exchanges in Africa that have come together for the purpose of developing member stock exchanges and providing a platform for networking . ASEA was established in 1993 and works closely with its members to unlock the potential of the African capital market.
DirectFN (www.directfn.com), is an innovative fintech provider company, founded on breakthrough innovation and passionate about creating new value for the capital markets ecosystem. For over 20 years, she has specialized in bringing digital maturity with FinTech and FinCON solutions to brokerage firms, banks, clearing houses and asset management companies from Morocco to Morocco. Indonesia. It has five offices in UAE, Saudi Arabia, Kuwait, Sri Lanka and Pakistan and is expanding into emerging and frontier markets.
Posted on 7/30/21 3:22 PM
Did you like this article ? Share it with your friends by clicking on the buttons below: