14 more African capital markets to integrate as SecondStax expands reach beyond 3-stock exchanges

By Joshua Worlasi AMLANU  [email protected]

Fostering deeper integration of capital markets on the African continent, SecondStax is embarking on an ambitious expansion plan to integrate an additional 14 African stock exchanges onto its platform.

The co-founder of SecondStax, Mr. Duke Lartey, disclosed that the company’s focus for the year includes bringing on board the Bourse Régionale des Valeurs Mobilières (BRVM), which represents the stock exchanges of nine French-speaking West African countries.

Alongside this, discussions with other exchanges are underway, with the ultimate goal of reaching 14 total integrated exchanges by the end of 2024—a substantial increase from the three – Ghana, Kenya, and Nigeria – on the platform.

In an exclusive interview with the B&FT, Mr. Lartey shed light on the vision driving SecondStax and the pivotal role expansion plays in their mission. He emphasized the collaboration with the African Exchanges Linkages Project (AELP), which is expected to facilitate the integration process by leveraging partnerships established through AELP.

“SecondStax emerged from a vision to transform African capital markets by addressing fragmentation and enhancing accessibility,” Mr. Lartey explained. “Since our inception in 2017, we’ve remained committed to driving positive change through innovation and collaboration.”

The dedication of SecondStax to addressing fragmentation and enhancing accessibility across African exchanges is evident in their plans to integrate additional stock exchanges into their platform. This expansion not only broadens SecondStax’s reach but also fosters greater connectivity and transparency across African capital markets.

Mr. Lartey highlighted the platform’s advantage in facilitating price discovery across integrated markets, providing real-time data on bid/ask spreads, trading volumes, and price movements, thus enhancing transparency.

While paving the way for greater market accessibility, SecondStax remains committed to investor education and regulatory compliance. Mr. Lartey emphasized the importance of engaging with regulatory entities early in the market entry process to ensure alignment with local requirements and foster investor confidence.

Looking ahead, Mr. Lartey envisions technology playing an increasingly pivotal role in shaping the future of African capital markets. “We see AI integration and data analytics capabilities as key drivers of innovation,” he said. “By leveraging technology, we aim to remove fragmentation and inefficiencies, unlocking the full potential of Africa’s capital markets.”

SecondStax’s ambitious expansion plans signify a significant milestone in transforming African capital markets. With a steadfast commitment to integration, transparency, and innovation, the company is poised to redefine the investment landscape across the continent.

As part of its strategy, SecondStax has also announced plans to conduct a series of webinars and engage consistently with various stock exchanges, particularly in Ghana, where they are focused on sales and onboarding new investment firms. This initiative underscores their dedication to fostering participation and awareness among investors.

Navigating regulatory frameworks across different markets presents its own set of challenges, but SecondStax prioritizes compliance and transparent communication with regulatory authorities. Mr. Lartey stated, “Regulatory compliance is essential for fostering investor confidence and market integrity. We engage with regulatory entities early in our market entry process, ensuring alignment with local requirements.”

The integration of 14 additional African stock exchanges onto SecondStax’s platform is expected to not only enhance market accessibility but also contribute to the overall growth and development of African capital markets. This move comes at a crucial time when efforts are being made to deepen regional integration and attract more investment to the continent.

SecondStax’s expansion plans mark a significant step forward in the journey to transform African capital markets. With a comprehensive approach that emphasizes integration, transparency, and innovation, SecondStax is poised to play a leading role in reshaping the investment landscape across Africa.

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