Business - Featured - Regional - March 5, 2021

AfDB, ASEA project to support African corporates in raising capital

The African Exchanges Linkage  Project(AELP) will support African corporates in raising capital through issuances across multiple jurisdictions, leading to increased domestic and foreign institutional investors’ participation in African capital markets BusinessMail can report.

The AELP is a joint initiative of the African Development Bank(AfDB) and the African Securities Exchange Association (ASEA) involving seven leading African securities exchanges. It is funded by the Korea-Africa Economic Cooperation (KOAFEC) Trust Fund, one of the Bank’s bilateral funds.

Speaking at the webinar dubbed ‘The Making Finance Work for Africa’, hosted by the AfDB and ASEA, President Stanley Nalletamby from ASEA said AELP will support African corporates in raising capital through issuances across multiple jurisdictions, leading to increased domestic and foreign institutional investors’ participation in African capital markets.

“The African Development Bank supports the emergence of well-regulated, deep, and liquid capital markets with diverse product offerings.

Among the AELP milestones discussed during the event were the establishment of six criteria to use in assessing the candidacy of exchanges wishing to join, establishment of a project management office and rollout of a communications program about the initiative

AELP Project Manager Tom Minne provided an update on the ongoing procurement of an order-routing technology platform, the AELP Link, which will make it easier for an investor in any participating market to buy and sell securities listed on other participating exchanges

The webinar was held as the historic Africa Continental Free Trade Area agreement (AfCFTA), entered nearly three months of operation since 1 January

Wamkele Mene, Secretary General of the AfcFTA also acknowledged the importance of capital markets in general and the AESA in particular

“I look forward to a partnership where both will confront this challenge of mobilizing investment for productive sector capacity on the African continent,” he said.

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