Kenya, Nigeria, Egypt, Morocco, and Mauritius have signed an agreement to form the African Stockbrokers, and Securities Dealers Association (ASSDA). The association will enable cross-border trading in Africa.
The members of the governing council of the African Stockbrokers and Securities Dealers Association (ASSDA) signed the MoU on 26th November, to enable settlement of securities across participating exchanges.
Under the MoU, ASSDA will engage regulators and governments to set solutions that address the lack of depth and liquidity in Africa’s financial markets.
The association of stockbrokers will promote Pan-African investment, and actualize the goals of the African Exchange Linkage Project (AELP) to connect African Stock Markets.
Additionally, the organization seeks to deepen local financial markets through cross border trading, supporting the unique needs of African investors.
“ASSDA also supports the overarching goal of boosting Pan-African investment flows, promoting innovations that support diversification needs of investors in Africa, and helping address the lack of depth and liquidity in Africa’s financial markets,” read a press release.
ASSD shall be an association of other associations whose members deal in securities in different forms. The African Development Bank (AfDB) will serve as an observer member in the association.
The African Exchange Linkage Project is working on another project to link stock exchanges. This project is in partnership with AfDB, and expects to link participating exchanges through a central trading platform.