Stock Exchanges In Africa

The African Stock Exchanges is one of the leading stock exchanges in the world. It is associated with a association which is called ASEA.The African Stock Exchanges Association (ASEA) has promoted not only the development of stock exchanges, but also cooperation among them within four main regions: in East Africa among the exchanges in Kenya, Tanzania and Uganda; among the Johannesburg Stock Exchange and smaller Southern African Development Community exchanges; in North Africa, led by the Cairo and Alexandria exchanges; and in West Africa among the Nigerian and Ghanaian exchanges and the Bourse Régionale des Valeurs Mobilières, the francophone regional exchange.

During 1998, authorities in the Central African part of the franc zone consulted the Mauritian stock exchange on the potential for a regional stock market. At the same time, plans for a bourse in Gabon were reported to be proceeding under the aegis of the Finance Ministry. The Central African exchange would serve Cameroon, Central African Republic, Chad, Congo Republic, Equatorial Guinea and Gabon, which share a common currency, the CFA franc, and a common central bank.

A unified stock market for the east African region of Kenya, Tanzania and Uganda is planned and may be in place by the year 2000. The exchange could have trading floors in all three capitals in the region, with trading being functional between the three centres (while Nairobi already boasts a well established bourse, the other two countries in the region have only recently set up exchanges). A regional exchange would help companies tap into a wider capital base, encourage more to list on the exchange and improve liquidity for investors. The three exchanges have already agreed on the principles of cross border listing and are now focusing on developing regional products.