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Investors will gain exposure to shares listed on the Johannesburg, Kenyan and Nigerian stock exchanges once the three major markets cross list equities, commodities and bonds through exchange traded funds. The move will lead to improved liquidity on the Africa's exchanges.
A strong year is expected for equity capital markets in Africa following the highest level of activity in 2014 in five years. In total, $11-billion was raised in initial public offerings and further offers in the year, and 24 African IPO companies were listed.
Africa's stock markets must collaborate to make the most of historic levels of investor interest in the continent, says Johannesburg Stock Exchange chief executive Nicky Newton-King.
As investors look increasingly for opportunities in fast-growing Africa, one challenge is to identify the best avenue for entering the market. Africa Renewal's Masimba Tafirenyika reflects on what is needed to boost the growth of Africa's stock markets.
The stock exchanges of the BRICS emerging market bloc - Brazil, Russia, India, China and South Africa - have announced an initiative to cross-list benchmark equity index derivatives on each other's boards, in an effort to expose investors to opportunities in the world's leading developing markets.
The number of companies seeking to list on South Africa's stock exchanges increased from two to 17 in the third quarter of 2007 compared to the same period a year ago, in what professional services firm Ernst & Young describes as a "listings boom".