The African Securities Exchanges Association (ASEA) is pleased to announce that the Uganda Securities Exchange (USE) has officially joined Phase 2 of the African Exchanges Linkage Project (AELP). With this inclusion, the AELP now comprises ten participating exchanges representing 17 countries, enhancing the potential for cross-border trading, collaboration, and capacity building across the continent.

The AELP, which went live in November 2022, is an initiative of ASEA and the African Development Bank (AfDB) aimed at connecting Africa’s leading securities exchanges to facilitate seamless cross-border trading and investment. This integration allows for greater market liquidity, improved access to capital, and enhanced investor opportunities across Africa’s financial markets.

The Uganda Securities Exchange, established in June 1997, has a proven track record of growth and innovation in Uganda’s financial market. As the principal stock exchange in Uganda, licensed by the Capital Markets Authority of Uganda, the USE has successfully navigated key milestones, including the automation of its Securities Central Depository (SCD) in 2010 and its demutualization in 2018. These advancements have significantly improved its governance and operational efficiency, making it a leader in Uganda’s financial sector.

By joining Phase 2 of the African Exchanges Linkage Project (AELP), the Uganda Securities Exchange (USE) strengthens its commitment to regional market integration, building on its participation in the East African Community’s Capital Markets Integration (CMI) project. The president of ASEA and CEO of Rwanda Stock Exchange, Mr. Pierre Celestin Rwabukumba said: “It’s great to see countries and coming together to strengthen economic ties and promote growth in the region.  Uganda coming on board with other ASEA member exchanges will enhance collaboration and economic growth within participating exchanges thus enhancing further the wider Africa Continental Free Trade Area (ACFTA) efforts.” This inclusion allows Ugandan investors access to a wider range of investment opportunities across the continent while attracting international investors to Uganda’s growing market. The USE will play a crucial role in enhancing liquidity, boosting trade volumes, and fostering closer ties between African exchanges, contributing to the creation of a more integrated, resilient, and competitive African capital market.

The AELP’s expansion into ten exchanges and potentially over 40 stockbrokers, including USE’s notable brokers such as Crested Stocks and Securities Limited and SBG Securities Uganda Limited, is a testament to ASEA’s dedication to fostering collaboration and growth within Africa’s capital markets. This expansion has been made possible through the support of the African Development Bank (AfDB), which recently awarded ASEA a second grant to facilitate the inclusion of additional participants in the project.

Source: AELP