The Nairobi Securities Exchange on Tuesday formalized the proposed partnership with the Shenzhen Stock Exchange (SZSE) by signing a Memorandum of Understanding.
NSE has embraced strategic partnerships as a key pillar to the success and growth of the capital markets in Kenya.
The two stock exchanges launched for the first time, a joint investor forum dubbed the China-Kenya Capital Market Service Initiative which aims to link the Micro, Small and Medium Enterprises (MSMEs) sector in Kenya to investors in Shenzhen so asto allow a capital formation platform on a larger scale.
NSE and SZSE agree that China and Kenya have a great potential for economic cooperation, which is witnessing rapid growth in both countries.
Capital is an important factor for boosting the development of real economy. Further, both stock exchanges agree that capital market services should facilitate capital formation for companies at different stages of development.
Speaking in Nairobi, NSE CEO, Geoffrey Odundo said that the collaboration with the Shenzhen Stock Exchange is deliberate and strategic.
“It is geared at achieving a number of goals including, encouraging seamless cross-border access between our capital markets to ultimately drive deeper capital markets, create larger liquidity pools and greater competitiveness for our investors; enhance capacity and promote diversity of investment products to meet the needs of a wide range of investors and issuers,” he said.
“There will be great potential for future cooperation. My visit to Kenya this time also shows our aspiration to deepen cooperation,” said Wenhai XIE, Deputy Director-General, Technology Management Committee of Shenzhen Stock Exchange.
The two Exchanges also launched the Ibuka and V-Next Connect – a joint initiative which aims at promoting cross-border growth of Micro, Small and Medium-sized Enterprises (MSMEs) in Kenya and Shenzhen.
