NGX, Nairobi Exchange Strengthen Push for African Capital Market Integration
The Nigerian Exchange Group (NGX Group) and the Nairobi Securities Exchange (NSE) are intensifying efforts to improve connections between Nigeria’s and Kenya’s capital markets as part of a wider drive to promote cross-border investment across Africa.
The latest discussions took place in Nairobi during a high-level investor engagement organised by the Nairobi Securities Exchange in connection with the planned Dangote Petroleum Refinery initial public offering (IPO).
The engagement brought together stakeholders from both markets to examine ways companies and investors can gain easier access to opportunities beyond their domestic exchanges.
Speaking at the event, President and Chief Executive Officer of Dangote Industries Limited, Aliko Dangote, commended NGX Group Chairman Umaru Kwairanga and Group Managing Director/Chief Executive Officer Temi Popoola for promoting greater cooperation among African capital-market institutions.
Dangote said stronger links between African exchanges could enable companies with operations in several countries to raise funds in more than one market instead of relying exclusively on their home exchange.
He cited the proposed Dangote refinery in Lamu, Kenya, as an example of how increasing economic ties between African countries could create opportunities for cross-border capital raising and investment.
NGX Seeks Broader Continental Cooperation
According to NGX Group CEO Temi Popoola, the initiative is not limited to the Dangote refinery IPO but is part of a broader effort to establish stronger relationships between African exchanges.
Popoola said Kenya represents an important starting point for developing practical mechanisms that could eventually be adopted across other African markets.
The latest engagement follows a strategic meeting held by NGX Group in Lagos in April, where representatives of several African exchanges discussed ways to improve market connectivity and facilitate cross-border listings.
The earlier meeting involved exchanges including the Johannesburg Stock Exchange, Ghana Stock Exchange, Ethiopian Securities Exchange, BRVM and Nairobi Securities Exchange.
Focus on Cross-Border Investment
The collaboration comes as African capital markets seek ways to overcome market fragmentation and make it easier for investors to participate in opportunities across national borders.
Existing initiatives such as the African Exchanges Linkage Project (AELP) are also aimed at improving connectivity and facilitating cross-border trading among participating exchanges.
The Dangote Petroleum Refinery IPO provides a practical opportunity to explore how such cooperation can work in real transactions, while the broader objective is to create a framework that can support other companies and investors across the continent.
Nairobi Securities Exchange Chief Executive Officer Frank Mwiti welcomed the engagement, saying closer relationships between African exchanges could encourage knowledge sharing and create additional opportunities for issuers and investors.
The planned Dangote refinery project in Lamu further highlights the growing commercial relationship between Nigeria and Kenya. The proposed facility is designed to have a processing capacity of 700,000 barrels of crude oil per day and is expected to serve markets in East Africa.
NGX Group said it intends to build on the Nigeria-Kenya engagement and explore opportunities to extend the model to other African markets.
The initiative could contribute to efforts to improve capital mobility, broaden investor access and strengthen cooperation among African exchanges as the continent seeks to deepen its financial markets.
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