Mohamed Farid, head of the Egyptian Exchange (EGX), said the EGX management is considering a proposal by the African Development Bank (AfDB) to list a mutual fund that invests in government debt instruments in eight African countries, in cooperation with the African Financial Markets Initiative (AFMI).
The EGX welcomes all new financial products that can attract new segments of investors as long as they are consistent with the EGX rules and procedures. Coordination with the AfDB continues and aims at developing cooperation and exchange of experiences to strengthen and enhance the competitiveness of African stock markets, Farid added.
A delegation of AfDB has met with several parties in Egypt, including the Financial Regulatory Authority (FRA), the Central Bank of Egypt (CBE), and the Egyptian Investment Management Association (EIMA), to discuss the possibility of boosting cooperation in this regard in the presence of the EGX representatives.
The EGX and AfDB agreed to complete negotiations over increasing continental cooperation, especially the electronic linkage between the EGX and its African counterparts, connecting Egyptian brokerage companies with their African counterparts, and simplifying procedures to promote African inter-trade in securities.
It came during a meeting between the EGX and the AfDB delegation, chaired by Director of AfDB’s Country Office Malin Bloomberg, and representatives of the CBE and the FRA.
On the sidelines of the meeting, the EGX organised a roundtable with representatives of the African Domestic Bond Fund (ADBF) to discuss improving the liquidity situation and transparency in the domestic African bond markets in the presence of EIMA members.
Bloomberg highlighted the important role of the ADBF as it enhances liquidity and transparency in the government debt market.
Egyptian-African initiatives to link stock exchanges electronically aim at increasing African inter-trade in securities. They also help in linking brokerage firms in the continent through simple trading procedures.