The African Securities Exchanges Association (ASEA) and technology firm SecondSTAX have joined forces to accelerate the integration of Africa’s capital markets. Through a newly signed memorandum of understanding (MoU), SecondSTAX will provide technical and operational support to the African Exchanges Linkage Project (AELP), an initiative spearheaded by ASEA and the African Development Bank (AfDB). The primary objective of the AELP is to integrate exchanges across the continent and facilitate seamless cross-border trading of securities. This collaboration aims to enhance liquidity and efficiency within African capital markets while promoting increased investments.
Africa’s exchanges have witnessed significant growth over the past decade, with impressive performance in both stocks and bonds. During this period, IPOs raised over $17 billion, while FOs generated $70 billion in capital. Debt capital markets raised a staggering $246 billion, and equity indices achieved more than 50 percent growth across major regional exchanges. However, the limited accessibility of these markets, along with a lack of comprehensive risk profile data, has hindered access to capital and high-growth assets for investors.
ASEA, consisting of 25 securities exchanges across 37 African countries, plays a crucial role in unlocking the potential of African capital markets. It works closely with member exchanges to provide training, capacity building, and a centralized information portal for African public markets. To further support its members, ASEA has partnered with SecondSTAX, leveraging their technical capabilities to enhance liquidity and efficiency within the continent’s securities exchanges.
SecondSTAX brings a suite of solutions to the table, providing vital support to the AELP and ASEA members. Their Research Portal offers ASEA members, investors, and investment firms across all jurisdictions access to reliable and centralized information. This resource empowers investment decisions with comprehensive and up-to-date data. Additionally, SecondSTAX’s Order and Execution Management System (OEMS) streamlines trade booking across multiple African exchanges, automating straight-through processing to reduce operational overheads.
The collaboration between ASEA and SecondSTAX will drive efficiency and liquidity within Africa’s capital markets. SecondSTAX’s KYC portal simplifies the investor onboarding process, facilitating trade bookings in markets outside their domiciled region. Furthermore, the SecondSTAX Liquidity Providers Portal aggregates licensed foreign exchange providers, including the Pan-African Payment and Settlement System (PAPSS). This portal equips investors with real-time transaction speed measurement and comparison, along with liquidity provider rates.
Thapelo Tsheole, President of ASEA, expressed the organization’s commitment to enhancing the efficiency and liquidity of Africa’s securities exchanges through this partnership with SecondSTAX. The collaboration aligns with ASEA’s mission of driving economic growth across the continent by attracting increased capital inflows. Eugene Tawiah, CEO and co-founder of SecondSTAX, shared his confidence in the company’s solutions and expressed excitement about playing a pivotal role in driving growth and efficiency within Africa’s capital markets.