NGX Group and Nairobi Exchange Push for Closer Cross-Border Capital Market Ties
The Nigerian Exchange Group (NGX Group) and the Nairobi Securities Exchange (NSE) have taken further steps towards deepening cross-border cooperation, with market participants from Nigeria and Kenya gathering in Nairobi on Tuesday to examine ways of strengthening ties between the two markets and across the continent.
Aliko Dangote, President and Chief Executive of Dangote Industries Limited, used the platform of the Dangote Petroleum Refinery IPO High-Level Investor Engagement, hosted by the NSE, to commend Umaru Kwairanga, Group Chairman of NGX Group, and Temi Popoola, the group's Managing Director and Chief Executive Officer, for the work they have done in bringing African capital-market institutions closer together.
According to Dangote, closer cooperation among African bourses would open the door for companies to raise capital in several African markets at once, instead of confining their capital-market activity to their home country.
He pointed to the planned Dangote refinery in Mokowe, Lamu, as an illustration of what deeper integration could make possible, arguing that firms operating in more than one African country ought to be able to weigh listings in multiple markets on the continent.
The Nairobi meeting follows a strategic gathering that NGX Group convened in Lagos in April, where heads of leading African exchanges discussed cross-border market connectivity and ways of boosting collaboration among the continent's capital markets.
For Popoola, the value of the Nairobi engagement goes well beyond any single transaction.
"When we began this engagement, our objective was continental: to bring African exchanges together and explore how we can create stronger connections between African capital markets," Popoola said.
"Kenya represents an important first step in translating that ambition into practical collaboration. We see this engagement with the Nairobi Securities Exchange as a model that can be strengthened and potentially replicated across other markets on the continent."
Although the Dangote Petroleum Refinery offer supplies a practical setting for the cooperation, the wider aim is to deepen relationships between African markets and to make cross-border access to capital-market opportunities easier.
The effort also fits into broader continental initiatives, among them the African Exchanges Linkage Project (AELP), which is intended to improve connectivity and smooth the way for cross-border trading and investment among African exchanges.
The weight of the Nigeria–Kenya engagement becomes clearer in light of the scheduled groundbreaking of Dangote's proposed 700,000-barrel-per-day refinery in Lamu. Designed to serve the East African market, the project illustrates the size of the cross-border business and investment opportunities taking shape on the continent.
Popoola said the goal is to build on the Kenya engagement and work out a template for wider cooperation across Africa.
"We see the work with Kenya as a prototype for how African markets can support greater connectivity among themselves. This is an important step towards facilitating cross-border access to capital-market opportunities, with the potential to scale across West Africa and the wider continent," he said.
Frank Mwiti, Chief Executive Officer of the Nairobi Securities Exchange, also praised NGX Group for helping to facilitate the engagement. He observed that closer collaboration among African exchanges could strengthen ties between markets, encourage the sharing of expertise and open up more opportunities for investors and issuers throughout the continent.
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