The Ghana Stock Exchange through its membership with the African Securities Exchanges Association (ASEA) and the Pan African Payments and Settlement System (PAPSS) has signed a memorandum of understanding to enhance cross-border securities transactions in Africa, foster access to capital, reduce costs, shorten processing and settlement times, and resolve issues with currency availability.[i]

The MoU was signed during the African Securities Exchanges Association’s 73rd Executive Committee meeting on the 14th of April 2023.[ii] On the back of the implementation of the African Continental Free Trade Area (AfCTA) aimed at promoting trade and economic integration in Africa, and the introduction of the African Exchanges Linkage Project that also aims to enhance accessible cross-border trading, this MoU is a significant step in the fostering of economic growth and development on the continent.

An increase in trade activity and market liquidity, continent-wide market integration, and an influx of foreign investments are projected benefits of the MoU. The president of the ASEA, Thapelo Tsheole highlighted that PAPSS could be instrumental to the African Exchanges Linkage Project. With nine exchanges and a market cap of USD 1.5 trillion, the ASEA is well equipped to collaborate with PAPSS to enhance trade and economic integration across Africa.[iii] 

The MoU between the Ghana Stock Exchange and the Pan African Payments and Settlement System is expected to transform the African Market space and enhance economic growth and development on the continent through increased efficiency, access to capital, reduced costs, and shorter processing and settlement times.

[i] https://thebftonline.com/2023/04/25/gse-papss-partnership-will-propel-market-expansion-analysts/. (n.d.). B&FT Online. Retrieved April 25, 2023, from https://thebftonline.com/2023/04/25/gse-papss-partnership-will-propel-market-expansion-analysts/

[ii] ASEA signs MoU with PAPSS. (n.d.). africanexchanges.org. https://african-exchanges.org/wp-content/uploads/2023/04/presser2023017_ASEA-signs-MoU-with-PAPSS.pdf

[iii] https://thebftonline.com/2023/04/25/gse-papss-partnership-will-propel-market-expansion-analysts/. (n.d.). B&FT Online. Retrieved April 25, 2023, from https://thebftonline.com/2023/04/25/gse-papss-partnership-will-propel-market-expansion-analysts/