What Are Settlement Periods on African Stock Exchanges?

Settlement is the process through which ownership of securities and payment are transferred after a stock market transaction.

African exchanges use different settlement cycles, commonly described as T+1, T+2, or T+3.

The letter T represents the trade date, while the number indicates how many business days later the transaction is scheduled to settle.

What Are the Settlement Cycles in Africa?

Nigeria’s equity market operates on a T+1 settlement cycle for eligible transactions.

The Nigerian Securities and Exchange Commission confirmed that T+1 settlement became effective on June 1, 2026, replacing the earlier T+2 system.

The BRVM has also adopted a T+2 settlement framework.

South Africa’s JSE traditionally uses T+3 settlement, while Egypt generally operates T+2 for standard listed-equity transactions.

Investors should verify the settlement cycle applicable to their security and market, as fixed-income instruments and other products can have different arrangements.

Why Do Settlement Periods Matter?

Shorter settlement periods reduce the time between trading and the final exchange of securities and money.

They can also reduce counterparty exposure and improve capital efficiency.

However, settlement is not the same as withdrawal processing.

An investor selling a share may need to wait for settlement before proceeds are available for withdrawal.

Additional banking, compliance, or foreign-exchange processes may also apply.

How Does Settlement Work on Daba?

For eligible transactions, the applicable exchange and intermediary determine the underlying settlement process.

Investors should check the relevant investment terms and cash availability within the Daba app.