You are currently viewing Cross-Border Trading Begins with the Launch of AELP

Cross-Border Trading Begins with the Launch of AELP

On November 18th, 2022, the much-anticipated African Exchanges Linkage Project (AELP) officially went live, ushering in seamless cross-border trading among seven participating African Stock Exchanges. This initiative promises to boost interregional investment and unlock new horizons for Africa’s financial landscape.

The AELP, a joint project spearheaded by the African Securities Exchanges Association (ASEA) and supported by the African Development Bank (AfDB), connects stock exchanges based in seven countries:

  • Bourse Régionale des Valeurs Mobilières (BRVM) – Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, Togo
  • Casablanca Stock Exchange (CSE) – Morocco
  • The Egyptian Exchange (EGX) – Egypt
  • Johannesburg Stock Exchange (JSE) – South Africa
  • Nairobi Securities Exchange (NSE) – Kenya
  • Nigerian Stock Exchange (NSE) – Nigeria
  • Stock Exchange of Mauritius (SEM) – Mauritius

Through the AELP Link platform, domestic investors can now buy and sell securities listed on any of the participating exchanges. This eliminates the need for intermediaries and streamlines the process, lowering costs and boosting efficiency.

The AELP is expected to yield significant benefits:

Increased Investment Flow

By removing barriers to cross-border investment, the AELP will attract new capital to African markets.

Diversification Opportunities

Investors gain access to a wider range of securities, mitigating risks and enhancing portfolio diversification.

Market Deepening

Increased trading volumes will boost liquidity in participating exchanges, making them more attractive to both investors and issuers.

Regional Integration

The AELP strengthens financial cooperation and fosters closer economic ties between African nations.

The AELP’s launch marks a significant step towards realizing the aspirations of the African Continental Free Trade Area (AfCFTA). By facilitating financial integration, the project sets the stage for increased intra-African trade and a more vibrant continental economy.

The road ahead for the AELP involves onboarding additional exchanges and expanding the range of products offered on the platform. Nevertheless, the initial success of this initiative should pave the way for a brighter future for African capital markets.