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Arab, African Exchanges Sign MoU to Develop Capital Markets

Arab, African Exchanges Sign MoU to Develop Capital Markets

Tuesday, 26 November, 2019 - 11:15

The Arab Federation of Exchanges (AFE) and the African Securities Exchanges Association (ASEA) signed a Memorandum of Understanding (MoU) aimed at enhancing the competitiveness of member exchanges and supporting the development of more transparent, efficient and sustainable capital markets within both regions.

The signing ceremony took place on the sidelines of the 23rd ASEA Annual General Meeting and Conference hosted by the Botswana Stock Exchange in Kasane, Botswana on November 24 – 26.

The Annual Conference is the main event of ASEA, which brings together international exchanges, policymakers, regulators and top government officials to discuss topical issues facing African capital markets.

Speaking at the signing ceremony, AFE Chairman and Executive Chairman of The Egyptian Exchange, Mohamed Farid, described the MoU as “part of shared vision of transformation of the two regional markets.”

Farid explained that this collaboration will support AFE’s efforts to boost human capital in the African and Arab financial markets by combining the expertise and reach of the AFE and ASEA to deliver joint programs and projects which ultimately will benefit markets of both associations.

President of ASEA and Chief Executive Officer of the Casablanca Stock Exchange Karim Hajji asserted that ASEA and the AFE are natural partners given their mutual objectives to advance the regions’ capital markets, through developing member exchanges, advocating for enabling policies and driving the adoption of global standards.

Establishing this functional relationship, strengthens the ability to tackle complex issues facing both markets and push for better outcomes on capital market matters in the two regions, added Hajji.

“I look forward to connecting ASEA members to a new community of global exchanges, and hope that together we will translate the opportunities presented by this partnership into tangible actions and initiatives which will impact both regional markets.”

Established in 1978, Arab Federation of Exchanges (AFE) joins 16 exchanges and 4 clearing houses, in addition to several brokerage firms. In total, collectively there are over 1,590 listed corporates with a total equity market capitalization of $1.2 trillion.

The Federation’s mission is to enhance transparency in the Arab capital markets, support member development and reduce barriers to cross-border trading in the region.

ASEA was formed with over 25 African exchanges, which collectively are home to over 1,100 listed companies with a total equity market capitalization of approximately $1.5 trillion.

ASEA seeks to position African securities exchanges to be significant drivers of the economic and societal transformation of Africa, by providing a forum for mutual communication, information exchange, cooperation and technical assistance among its members.

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