The AELP Trading Link, a new e-platform created by the African Exchanges Linkage Project (AELP), enables smooth cross-border securities trading between seven African stock exchanges, which together represent 2,000 businesses with a market capitalization of around $1.5 trillion.
The AELP Link Trading Platform includes order routing, market and order-book data sharing, and stock market integration. The African Development Bank and the African Securities Exchanges Association jointly launched the AELP program (ASEA). The Bank is financing the project’s progressive implementation on behalf of ASEA through a grant from the Korea-Africa Economic Cooperation Trust Fund (KOAFEC).
In conjunction with the ASEA 2022 Annual General Meeting and Annual Conference, which took place from December 7 to December 9, 2022 in Abidjan, Cote d’Ivoire, the launch took place on December 7, 2022.
The African Development Bank, institutional investors, stockbrokers, and members of the investing community attended the event, together with executives from African stock exchanges.
“With AELP, we are entering a new era of African capital markets where all our members will gradually transact cross-border trades from one African securities exchange to another. This project represents a great opportunity for investors and issuers across the continent,” said Edoh Kossi Amenounve, ASEA’s President.
Seven stock exchanges in 14 different African nations will be linked by the AELP’s first phase, including those in Morocco, Egypt, Nigeria, Kenya, Mauritius, South Africa, and the West African Economic and Monetary Union, which is made up of Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo. After undergoing beta testing, the AELP Trading Link went online on November 18. In collaboration with DirectFN Ltd., the system is being implemented.
In order to educate financial market professionals about international investing practices and market-specific investment regulations, AELP also offers training programs. Programs to enhance capacity have benefited central bankers, stockbrokers, security dealers, custodians, and other stakeholders.
As a ground-breaking pan-African platform for security dealers to collaborate on the integration of capital markets and the development of new financial products, the African Development Bank and ASEA also backed the founding of the African Stockbrokers and Securities Dealers Association.
The African Development Bank’s Manager for Capital Markets Development, Mr. Ahmed Attout, said: ‘It is our pleasure to partner with ASEA through this process culminating in the operationalization of the African Exchanges Linkage Project Link Trading Platform. The AELP is a transformational project that aligns with the African Development Bank’s High 5 priorities, especially Industrialize Africa and Integrate Africa. It is also in tandem with the African Continental Free Trade Agreement’s objective of establishing a liberalized market to aid the movement of capital, facilitate investments and deepen the continent’s economic integration.”
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