This archive report was first published on 3 January 2020.
Published on January 3, 2020, the Nairobi Securities Exchange (NSE) has been ranked as the best performing stock exchange market in Sub-Saharan Africa over the last decade.
The NSE's benchmark index saw a significant increase of 74 per cent in the last ten years, outperforming its rivals, the Johannesburg Stock Exchange and the Nigerian Stock Exchange. In contrast, the Nigerian Stock Market benchmark index declined by about 50 per cent in the same period.
The MSCI Frontier Markets index, which measures the general performance of frontier markets such as Kenya, Tanzania, Zambia, Namibia, Egypt, Morocco, Senegal, and Tunisia, improved by 12 per cent from January 1, 2010, to December 31, 2019.
The Nairobi-based exchange is set to link up with six African exchanges to increase activity on the stock market. As a member of the African Securities Exchanges Association, the NSE will enable stockbrokers to place orders on the Casablanca Exchange, Johannesburg Stock Exchange, Nigerian Stock Exchange, Egyptian Bourse, Exchange of Mauritius, and the Abidjan Exchange, and vice versa, starting from 2021.
According to Karim Hajji, President of the African Securities Exchanges Association, the initiative is supported by the African Development Bank, which has contributed funding of up to $1 million for the system that will help connect the seven exchanges.
Additionally, the International Finance Corporation is financing a study on the potential of listing state corporations on African Stock Markets, which is expected to boost capital markets in Africa and drive economic growth in the continent.
