The Nigerian Exchange Group and the Nairobi Securities Exchange are stepping up efforts to enhance cross-border capital-market cooperation. Stakeholders from both markets are exploring ways to improve connections between African exchanges. This engagement follows a high-level investor meeting in Nairobi, hosted by the Nairobi Securities Exchange, on the planned initial public offering of the Dangote Petroleum Refinery.
The Nigerian and Kenyan capital-market stakeholders are exploring stronger links between the Nigerian Exchange and Nairobi Securities Exchange. The NGX Group says the Nigeria-Kenya engagement could provide a model for connecting African exchanges and widening cross-border access to capital. The Dangote Petroleum Refinery offer provides a practical context for the collaboration, while broader discussions focus on investors and issuers across Africa.
Aliko Dangote, President and Chief Executive of Dangote Industries Limited, commended NGX Group Chairman Umaru Kwairanga and Group Managing Director/Chief Executive Officer Temi Popoola for advancing collaboration among African capital-market institutions. Dangote said stronger links between African exchanges could enable companies to access capital across multiple markets rather than limiting their capital-market activities to their countries of origin.
The planned Lamu refinery further highlights the potential for stronger capital-market links between West and East Africa. The project is intended to serve the East African market and represents the type of cross-border investment that could benefit from deeper financial-market integration. This project is an example of the increasingly cross-border nature of African businesses.
The engagement in Nairobi follows a strategic meeting convened by NGX Group in Lagos in April, which brought together leaders of major African exchanges to discuss cross-border market connectivity and opportunities for greater cooperation. Popoola said the objective went beyond facilitating an individual transaction and was focused on creating stronger connections between African capital markets.
Frank Mwiti, Chief Executive Officer of the Nairobi Securities Exchange, commended NGX Group for facilitating the engagement. He said stronger collaboration among African exchanges could deepen relationships between markets, encourage the sharing of expertise and create greater opportunities for investors and issuers across the continent.
The initiative also aligns with broader efforts such as the African Exchanges Linkage Project, which seeks to improve connectivity and facilitate cross-border trading and investment among participating African exchanges. NGX Group intended to build on the Kenya engagement and develop a framework for broader cooperation, seeing the work with Kenya as a prototype for how African markets can support greater connectivity among themselves.
Key points
- The Nigerian Exchange Group and Nairobi Securities Exchange are exploring stronger links to deepen cross-border capital-market cooperation.
- The collaboration could provide a model for connecting African exchanges and widening cross-border access to capital.
- The initiative aligns with broader efforts such as the African Exchanges Linkage Project.
