The Nigerian Exchange Group (NGX Group) and the Nairobi Securities Exchange (NSE) are enhancing their collaboration to deepen cross-border capital-market integration. This effort aims to allow companies and investors to access opportunities beyond their domestic markets. A high-level investor engagement in Nairobi, hosted by the NSE, brought together Nigerian and Kenyan market stakeholders to discuss ways to strengthen connections between the two markets and promote wider collaboration across Africa.
The engagement, which took place on Tuesday, was part of the Dangote Petroleum Refinery IPO. Aliko Dangote, President and Chief Executive Officer of Dangote Industries Limited, commended Umaru Kwairanga, Group Chairman of NGX Group, and Temi Popoola, Group Managing Director/Chief Executive Officer of NGX Group, for advancing collaboration among African capital-market institutions. Dangote emphasized that deeper cooperation among African exchanges could enable companies operating across the continent to raise capital in multiple markets.
Dangote cited the planned Dangote refinery project in Mokowe, Lamu, as an example of the cross-border opportunities that could emerge from stronger integration between African capital markets. He suggested that companies with significant operations in different African markets should have the opportunity to consider listings in more than one market. This would allow them to access a broader range of investors and capital.
The Nairobi engagement builds on a strategic meeting convened by NGX Group in Lagos in April. That meeting brought together leaders of major African exchanges to examine cross-border market connectivity and ways of strengthening cooperation among capital-market institutions across the continent. Popoola stated that the objective of the initiative goes beyond the Dangote refinery transaction and aims to develop a broader continental framework for capital-market cooperation.
Popoola described the Nigeria-Kenya engagement as an initial step towards achieving this goal. He emphasized that the collaboration with the Nairobi Securities Exchange serves as a model that can be strengthened and potentially replicated across other markets on the continent. The goal is to create stronger connections between African capital markets and facilitate greater cross-border access to capital-market opportunities.
The initiative also aligns with existing continental efforts, such as the African Exchanges Linkage Project (AELP). The AELP seeks to improve connectivity and facilitate cross-border trading and investment among participating African exchanges. The planned groundbreaking of Dangote’s proposed 700,000-barrel-per-day refinery in Lamu further highlights the potential scale of Nigeria-Kenya economic and investment links.
Frank Mwiti, Chief Executive Officer of the Nairobi Securities Exchange, commended NGX Group for facilitating the engagement. Mwiti noted that stronger collaboration among African exchanges could deepen relationships between markets, encourage the exchange of expertise, and create additional opportunities for investors and issuers across the continent. The discussions aim to strengthen the Nigeria-Kenya market relationship within a broader effort to improve the ability of African companies to raise capital and investors to access investment opportunities across national borders.
Key points
- NGX Group and Nairobi Securities Exchange are strengthening ties to deepen cross-border capital-market integration.
- The collaboration aims to enable companies and investors to access opportunities beyond domestic markets.
- The initiative aligns with existing continental efforts, such as the African Exchanges Linkage Project.
