Martin Luther Oketch
25 September 2008
To speed up the integration of stock exchanges in East Africa, the East African Securities Exchange Association (EASEA) have resolved that the implementation of the project ushering in a single clearing and settlement infrastructures is to be implemented within three to six months after January 2009.
The resolution was reached at during the 11th consultative meeting under the auspices of East African Securities Exchange held recently at the Serena Hotel, Nairobi. The EASEA members showed strong support for speedy integration of East African Stock Exchanges to create a wide market as well as increasing the liquidity levels within the region.
"The request for proposals will be ready in November this year and the project is expected to be implemented within three to six months thereafter," EASEA members said in a press communiqué they issued after the consultative meeting.
EASEA members said that the meeting will be hosted in Dar-es-Salaam in January 2009 and there after the implementation of the project will be endorsed.
One of the initiatives of the EASEA is to integrate trading, clearing and settlement infrastructures within the East African Community (EAC) to facilitate a faster trading system within the bloc.
Members of the East African Securities Exchange Association, which consists of the Chief Executive Officers of the four stock exchanges of EAC partner states, said that the integration model would allow market participants in EAC's Exchanges trade in the four markets.
They argued that the integration of the Exchanges will also bring the following benefits to the region; consolidation of market liquidity across the region, increase visibility of the EAC's capital markets to foreign investors hence attracting capital benefits to the region.
Other benefits expected from the integration are single access point to capital and liquidity across the markets and this would subsequently make cross border trading more efficient.
On the current status of the EASEA, members noted with concern that high inflationary rate being experienced in all the partner states leading to high cost of living pose threats to investors in East Africa.
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