SecondSTAX partners Nigerian Exchange on cross-border trading

STARTUP VENTURE CAPITALOctober 19, 2023 at 1:04 AM UTC

Nigeria's SecondSTAX has partnered with the Nigerian Exchange Limited (NGX) to enable institutional investors from across Africa to directly invest in Nigeria's capital markets. This new partnership is developed in close coordination with Afrinvest.

SecondSTAX, established in 2020 by Eugene Tawiah and Duke Lartey, aims to facilitate investment flows within African capital markets by simplifying the connection between investors and high-growth, high-impact opportunities. The startup offers access to debt and equity securities on various African bond and stock exchanges.

The goal is to streamline the investment process for licensed broker-dealers, asset managers, major commercial banks, and other institutional investors from across the continent. It also offers a transparent, user-friendly, cloud-based portal, allowing investments in native currencies, thereby expanding the range of assets and opportunities available to more Africans and promoting wealth creation on the continent.

Key Takeaways

African capital markets are fragmented, as various stock exchanges within the continent are often inaccessible to investors outside their home countries. Not only does this limit investors’ access to high-growth securities, but it also curtails access to capital that has grown significantly over the past couple of years. Moreover, with a combined market capitalization of around $1.6 trillion, of which South Africa’s Johannesburg Stock Exchange (JSE) accounts for $1.3 trillion, most of Africa’s exchanges are too small for major investors to concentrate on a single market. Needless to say, then the continent stands to gain a lot from interconnected capital markets, which would deepen the capital pool available to both private and public sector players through the cross-border listing, issuance, and trading of financial securities across the region.

SecondSTAX

NGX

Capital Markets

Investing

Nigeria