This month, African markets were marked by four East African countries: Rwanda (CSR), Uganda (USE), Tanzania (EHR), and Burundi, which eventually merged their stock markets through a decade-long automation project to attract investment. This is a project that has been in the making since 2011 when the countries of the region embarked on the integration of their stock exchanges. The technology platform dubbed EAC Capital Markets Infrastructure (CMI), developed by a private company based in Pakistan, will essentially interconnect all trading systems in the region: through the platform, investors from the four countries will be able to buy and sell company shares. listed in any of the countries without going through different stakeholders.
It is important to note that Kenya (NSE), which currently has the largest and most active capital market in the region, reportedly withdrew from the project in 2015 due to alleged supply irregularities,
In Tanzania, JATU Plc, a Tanzania-based agricultural company, began trading on the Dar es Salaam Stock Exchange (DSE) on Monday, November 23. The start-up listed 2,164,349 shares on the alternative market of DSE at a price of TZS 420. The company, which had not had an IPO, becomes investors’ darling stock after listing as it saw its stock soar to 460 on the first day of trading and appreciate 24 % in the first week of trading.
In Zimbabwe, the series of delistings from the Zimbabwe Stock Exchange continues. Powerspeed, one of the largest retailers of electrical products in the country, has begun the process of delisting from the local stock exchange after 22 years. This year, six companies have already exited or are in the process of exiting, making it one of the toughest years in Harare’s main capital market. Minor golden falcon exited the ZSE citing weak trading. ZimRe Real Estate Investments and SeedCo International also struck off; SeedCo International has since been listed on the new Victoria Falls Stock Exchange (VFEX), which offers US dollar trading. Dawn properties is also set to delist from the exchange after African Sun Limited made an offer to acquire 100% of the shares.
In North Africa, the Moroccan regulator has given the green light to Aradei Capital’s listing on the Casablanca Stock Exchange. The operation will be carried out through a capital increase and a sale of shares. The company will have ARD as its symbol and its introduction is scheduled for December 14.
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