Intra-African trade has seen growth, yet it remains only 15% of total trade—far below Europe’s 68%. The African Exchanges Linkage Project (AELP), launched in December 2022, connects over 2,000 companies with a combined market capitalisation of $1.5 trillion, aiming to facilitate cross-border securities trading and boost market transparency across seven African exchanges. Through increased liquidity and investment attraction, AELP has the potential to drive economic growth. However, challenges such as regulatory fragmentation, settlement and clearing complexities, and infrastructure gaps must be addressed to unlock its full potential. How can the AELP advance its goals while fostering essential regulatory and settlement reforms to build long-term competitiveness?
Key points:
- How can the AELP enhance the global competitiveness of African capital markets?
- What regulatory and monetary reforms are needed to maximize the platform’s impact on intra-African trade?
- How can we ensure that SMEs and other small businesses fully benefit from the integration of African stock exchanges?