The Nigerian Exchange Group (NGX Group) and the Nairobi Securities Exchange (NSE) have intensified efforts to deepen cross-border collaboration, as stakeholders from Nigeria and Kenya convened in Nairobi to explore opportunities for stronger market connections across Africa. The meeting, held on Tuesday, focused on enhancing integration between the two exchanges and aligning with broader continental initiatives to expand capital-market access.
Aliko Dangote, president and CEO of Dangote Industries Limited, praised NGX Group Chairman Umaru Kwairanga and Group Managing Director/Temidayo Popoola for their leadership in advancing African capital-market cooperation. Dangote emphasized that stronger collaboration among exchanges could enable companies to access capital across multiple African markets, citing the planned Dangote Petroleum Refinery in Mokowe, Lamu, as a potential model for cross-border listings. 'Companies with pan-African operations should consider listings in more than one African market,' he stated.
The Nairobi engagement follows a strategic meeting organized by NGX Group in Lagos in April, where leaders of major African exchanges discussed market connectivity and collaboration. Popoola highlighted the initiative's continental vision, calling Kenya an 'important first step' in translating ambition into practical partnerships. 'This engagement with the NSE is a model that can be strengthened and replicated across other African markets,' he said.
The collaboration extends beyond the Dangote refinery, aiming to strengthen relationships between African markets and facilitate cross-border capital access. The initiative aligns with the African Exchanges Linkage Project (AELP), which seeks to enhance connectivity and trading opportunities among exchanges. The planned $15 billion Dangote refinery in Lamu, designed to serve East Africa, underscores the scale of cross-border investment opportunities emerging on the continent.
Popoola emphasized the need to build on the Kenya engagement to create a scalable cooperation framework. 'Our work with Kenya is a prototype for how African markets can support greater connectivity,' he said. 'This step is critical for expanding cross-border capital-market access across West Africa and the continent.'
Frank Mwiti, CEO of the NSE, commended NGX Group for facilitating the dialogue, noting that stronger exchange collaboration could deepen market relationships, foster expertise sharing, and create opportunities for investors and issuers. 'This partnership reflects a shared commitment to advancing Africa’s financial integration,' he added.
The initiative highlights the growing role of African exchanges in driving regional economic integration. As the Dangote refinery project progresses, its potential to catalyze cross-border investment and market connectivity underscores the strategic importance of such collaborations in shaping Africa’s financial future.
The Nigerian capital market’s evolving landscape, marked by NGX Group’s leadership, signals a shift toward greater regional cooperation. Industry leaders like UBA’s CEO have urged African nations to transform opportunities into bankable projects, reinforcing the need for sustained cross-border partnerships.
The Dangote Petroleum Refinery IPO, which could see Kenyan investors access shares via Global Depositary Receipts (GDRs), exemplifies the practical benefits of such collaborations. This development aligns with broader efforts to diversify investment avenues and strengthen market resilience across Africa.
As African exchanges continue to explore pathways for deeper integration, the NGX-NSE partnership serves as a blueprint for fostering a more interconnected and dynamic capital market ecosystem. The initiative’s success could set a precedent for future collaborations, driving economic growth and financial inclusion across the continent.