Nigerian Exchange Group (NGX Group) and the Nairobi Securities Exchange (NSE) have taken steps to deepen cross-border collaboration. A meeting in Nairobi brought together stakeholders from Nigeria and Kenya to explore opportunities for stronger connections between the two markets and across Africa. This engagement builds on a strategic meeting convened by NGX Group in Lagos in April. The meeting discussed cross-border market connectivity and opportunities to strengthen collaboration among African capital markets.
Aliko Dangote, President and Chief Executive of Dangote Industries Limited, lauded Umaru Kwairanga, Group Chairman of NGX Group, and Temi Popoola, Group Managing Director/Chief Executive Officer, for their role in advancing collaboration among African capital-market institutions. Dangote said stronger collaboration among African exchanges could create opportunities for companies to access capital across multiple African markets. He cited the planned Dangote refinery in Mokowe – Lamu as an example of the opportunities that could emerge from stronger integration.
The Nairobi engagement provides a practical context for the collaboration, with the Dangote Petroleum Refinery offer. However, the broader objective is to strengthen relationships between African markets and facilitate greater cross-border access to capital-market opportunities. The initiative also aligns with wider continental efforts, including the African Exchanges Linkage Project (AELP), to strengthen connectivity and facilitate cross-border trading and investment among African exchanges.
For Temi Popoola, the significance of the engagement extends beyond any single transaction. Popoola said the objective was continental: to bring African exchanges together and explore how to create stronger connections between African capital markets. Kenya represents an important first step in translating that ambition into practical collaboration. The engagement with the Nairobi Securities Exchange can be strengthened and potentially replicated across other markets on the continent.
The broader significance of the Nigeria–Kenya engagement comes into sharper focus with the planned groundbreaking of Dangote’s proposed 700,000-barrel-per-day refinery in Lamu. The project, intended to serve the East African market, reflects the scale of cross-border business and investment opportunities emerging across the continent. This project and others like it can benefit from stronger collaboration among African exchanges.
Popoola said the ambition was to build on the Kenya engagement and develop a model for broader cooperation across the continent. The work with Kenya can serve as a prototype for how African markets can support greater connectivity among themselves. This is an important step towards facilitating cross-border access to capital-market opportunities, with the potential to scale across Africa.
The collaboration between NGX Group and NSE has the potential to create new opportunities for companies to access capital across multiple African markets. This can lead to increased economic growth and development across the continent. As African markets become more interconnected, companies can consider listings in more than one African market, increasing their access to capital and investment opportunities.
Key points
- NGX Group and Nairobi Securities Exchange explore deeper cross-border ties to strengthen connections between African capital markets.
- Collaboration aims to facilitate greater cross-border access to capital-market opportunities across Africa.
- Initiative aligns with wider continental efforts, including the African Exchanges Linkage Project (AELP).
