African Development Bank, African Securities Exchange Association launch AELP E-Platform connecting seven African capital markets with market cap of $1.5 trillion. | African Development Bank

The African Exchanges Linkage Project (AELP) has launched an e-platform (The AELP Trading Link), enabling seamless cross-border securities trading between seven African exchanges representing 2,000 companies with a market capitalization of approximately $1.5 trillion.

The AELP Link Trading Platform includes exchange integration, an order routing system and sharing of market and order book data. AELP is a joint initiative of the African Development Bank and the African Securities Exchanges Association (ASEA). With a grant from the Korea-Africa Economic Cooperation Trust Fund (KOAFEC), the bank is financing ASEA’s phased rollout of the project.

The launch took place on December 7, 2022 on the sidelines of the ASEA 2022 Annual General Meeting and Annual Conference, which will take place in Abidjan, Ivory Coast, from December 7 to 9, 2022.

Executives from African stock exchanges, the African Development Bank, institutional investors, stockbrokers and the investor community attended the launch.

Edoh Kossi Amenounve, President of ASEA, said: “With AELP, we are entering a new era of African capital markets where all our members will gradually conduct cross-border transactions from one African stock exchange to another. This project offers a great opportunity for investors and issuers across the whole continent.

The first phase of the AELP will connect seven exchanges in 14 African countries: Morocco, Egypt, Nigeria, Kenya, Mauritius, South Africa and the West African Economic and Monetary Union, covering Benin, Burkina Faso, Cte d’Ivoire , Guinea includes -Bissau, Mali, Niger, Senegal and Togo. The AELP Trading Link went live on November 18 after a beta testing period. The system is being implemented in partnership with DirectFN Ltd.

AELP also offers training programs aimed at financial market practitioners on cross-border investment practices and investment rules in the participating markets. Capacity building programs have provided benefits to financial market regulators, stock brokers/dealers, custodians, central bankers and other stakeholders. A dedicated website for the AELP is live on www.africanexchangeslink.com.

The African Development Bank and ASEA have also jointly supported the establishment of the African Stockbrokers and Securities Dealers Association as a pioneering pan-African platform for security dealer collaboration on capital markets integration and financial product innovation.

The African Development Banks Manager for Capital Markets Development, Mr. Ahmed Attout, said: We are delighted to be working 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 in particular with the High 5 priorities of African Development Banks Industrialize Africa and Integrate Africa. It also aligns with the objective of the African Continental Free Trade Agreements to establish a liberalized market to promote capital movement, facilitate investment and deepen the continent’s economic integration.

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