Chiemeka: Settlement next phase of African Exchange Linkage project

The African Exchange Linkage Project is taking a significant stride towards boosting liquidity and settlement phases, as noted by Jude Chiemeka, the Acting CEO of the Nigerian Exchange. In a recent interview with CNBC Africa, Chiemeka highlighted the pivotal role of the project in integrating various African markets, including Kenya, South Africa, Ghana, Egypt, Botswana, Mauritius, and BRVM. The project aims to create a seamless trading experience for investors across these markets, leveraging technology to facilitate cross-border transactions. Last year, the Nigerian Exchange witnessed remarkable performance, with top firms paying 362 billion Naira in taxes and almost a trillion Naira in dividends. This success paves the way for enhanced market activities and opportunities for both retail and institutional investors. The next phase of the project focuses on enabling trades to be settled in local currencies, offering a broader scope for capital raising activities across Africa. Chiemeka emphasized the importance of market integration and liquidity, highlighting the need for comprehensive research and coverage to drive more trades and investor participation. Despite current challenges like inflation and volatility, he remains optimistic about the market's growth potential and government reforms to sustain economic progress. Looking ahead to 2024, Chiemeka anticipates a shift towards utilizing the capital markets more effectively, emphasizing the importance of equity investments and asset sales to drive capital inflow and support economic development. He underlined the significant contributions of listed companies to the Nigerian economy, citing a study by McKinsey that showcased their tax compliance and job creation impact. Encouraging more companies to list on the exchange could further enhance tax revenues, job opportunities, and progress towards the $1 trillion economic target. The African Exchange Linkage Project stands as a cornerstone for promoting market integration, liquidity enhancement, and economic growth across the continent.