The Nairobi Stock Exchange(NSE) will use an estimated $ 12.98 million cash reserve to make acquisitions in various bourses in Africa.
On its sights are plans to buy stakes in Botswana Stock Exchange and the Nigerian Exchange, among other bourses.
The NSE planned acquisitions is part of its expansion bid to become a Pan-African bourse. The NSE already owns a 4.9% stake in the Dar es Salaam Stock Exchange(DSE).
In 2017, the Nairobi bourse invested in the DSE as part of its regional expansion strategy during the IPO.lated businesses, so we invested in the DSE during the IPO,” said Odundo.
While the NSE initially planned to profit from this investment, this position later changed and thus went back and acquired a bigger stake.,” said Odundo.
“We can become a Pan-African exchange in the long term, so we are looking at how we can use this opportunity,” said Odundo.
Available figures indicate that the NSE is the fifth biggest in Africa by asset and one of the top ten best performers.
The CEO further disclosed that the NSE is considering acquiring other related businesses such as depository services and stock trading firms. Already, the Nairobi bourse has increased its stakes in Nairobi-based Central Depository and Settlement Corporation(CDSC) Limited.
Africa has 29 stock exchanges with the list of best performers, including the Lusaka Securities Exchange, Ghana Stock Exchange, Malawi Stock Exchange, Johannesburg Stock Exchange, The Egyptian Exchange and Nigerian Exchange Group.