African leaders have approved that trading should start on 1 January next year as scheduled on the African Continental Free Trade Area (AfCFTA) agreement and requested African financial institutions to provide technical and financial support for its implementation.
Governance, good regulation and the availability of market data and trading information play fundamental roles in the investment decision making of African fund managers when investing into African capital markets. This is according to a recent survey of 50 African asset-managers on the continent. The survey was conducted by the African Exchanges Linkage Project (AELP) commercial working group. The AELP is a joint initiative by the African Securities Exchanges Association (ASEA) and the African Development Bank to unlock Pan-African investment flows, promote innovations that support diversification for investors, and address depth and liquidity in Africa’s capital markets.
Four East African countries – Rwanda (RSE), Uganda (USE), Tanzania (DSE), and Burundi – have finally merged their stock markets through a decade-long automation project to attract investment.