Bridging the Divide: Integrating SADC’s capital markets

People from a school group look at an electronic screen with stock index figures at the Johannesburg Stock Exchange (JSE) in Johannesburg, South Africa. Image: Getty, Gianluigi Guercia/AFP
People from a school group look at an electronic screen with stock index figures at the Johannesburg Stock Exchange (JSE) in Johannesburg, South Africa. Image: Getty, Gianluigi Guercia/AFP

In line with SADC’s objective to establish a real-time integrated network of capital markets, the Committee of SADC Stock Exchanges (CoSSE) established an interconnectivity model that will allow investors in each country to trade on all SADC exchanges through their local brokers.

Summary:

  • In line with SADC’s objective to establish a real-time integrated network of capital markets, CoSSE established an interconnectivity model that will allow investors in each country to trade on all SADC exchanges through their local brokers.
  • An integrated regional capital market was expected to allow better investment choices, thereby bringing more customers to regional bourses and exposing companies listed on SADC exchanges to local and foreign investors.
  • Interconnectivity is hampered by low levels of cross-border flows, and the lack of readily accessible information and market data about products listed on other SADC exchanges.
  • One requirement for cross-border trading is access to information about prices, trading and opportunities in each SADC country – there is thus a need to improve the offerings of the SADC Brokers Network platform.
  • Regional cooperation allows exchanges to overcome common impediments that constrain the growth of fledgling and fragmented national capital markets.
  • CoSSE could encourage national exchanges to work towards interconnectivity and integration by leveraging the support of the private sector and donor community, and lobbying for political support in SADC structures.
6 May 2019

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Research by
Series
SAIIA Occasional Paper No 295, April 2019
Region
Sub-Saharan Africa
SAIIA Programme
Economic Diplomacy
Tags
Investment, Southern African Development Community (SADC)

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