ASEA targets AELP Phase II roll-out by Q3 2023

…this will boost increased participation in investments – SEC, NGX

…local currency payment to reduce pressure on country’s reserves – PAPSS

By Chioma Obinagwam

The African Stock Exchange Association (ASEA) has revealed that having successfully launched phase one of the African Exchanges Linkage Project (AELP), it is looking at rolling at the second phase of the project to ensure investors take advantage of the wide array of investment prospects across African capital markets.

President, ASEA and Chief Executive Officer of Botswana Stock Exchange, Mr Thapelo Tsheole, disclosed this to market stakeholders during the AELP webinar themed; Exchange Linkage Project- Facilitating trades across borders on Wednesday. The webinar which was hosted by Nigerian Exchange Limited (NGX) and supported by Chapel Hill Denham Securities Limited, Central Securities and Clearing System (CSCS), Cordros Securities Limited and Stanbic IBTC Limited,  provided insights into the benefits and objectives of the AELP, Pan African Payment and Settlement (PAPSS) and other cross-border transaction requirements.

Applauding NGX f or promoting the AELP initiative, Tsheole noted that although African economies have encountered numerous challenges, the continent’s resilience in the face of adversities underscores its potential for sustained economic resilience and initiatives such as the AELP are very vital for Africa to rely on itself as it presents a momentum of opportunities for investors across Africa and the world by fostering deeper integration and connectivity among Africa’s capital markets.

“Having successfully launched phase one of the project in December 2022, connecting 7 exchanges across Africa, we urge Nigerian brokers in the process now to reach out to their counterparts in other countries and strive for an expanded cross-border trading across the continent. We are looking at the rolling out Phase 2 of the AELP in Q3 2023 as funding has already been approved by the African Development Bank (AfDB)

We will expand the number of participating exchanges to about 15 exchanges and we think this will enable investors in the continent to maximize and take advantage of the wide array of investment prospects across Africa”, he said.

Corroborating Tsheole, the Project Manager, AELP, Lina Tonui, in her presentation, said through the support of the AfDB, it received $980,000 from KOAFEC for the AELP implementation, phase one of the project while k regulatory support that will further deepen and enhance the transparency of the market and added that the commission is also equally supportive of all initiatives that will impact positively on the development of the capital market.

For his part, the Managing Director, Chapel Hill Denham Securities Limited, Mr. Akeem Shadare said the AELP has the potential to bring significant benefits to participating African countries and their capital markets, helping to promote economic growth and development.