In a significant stride toward the integration of African capital markets, SecondSTAX, an online trading platform, has joined forces with the Nigerian Exchange Limited (NGX) to enable institutional investors from across the continent to directly invest in Nigeria’s capital markets by providing a tech-driven smart order management and execution routing system built for investment firms.
This cloud-based platform ensures that licensed broker-dealers, asset managers, large commercial banks, and other institutional investors can participate transparently in Nigeria’s premier exchange.
Speaking at the launch in Lagos at the weekend, the CEO and co-founder of SecondSTAX, Eugene Tawiah said “Our aim is to integrate all the capital markets across Africa to enable more seamless investment flows and this partnership the NGX represents a major milestone on our journey. Nigeria’s capital markets are full of lucrative opportunities that have until now been out of reach to institutional investors outside the country.
“Along with new investment opportunities, this partnership will also make it easier for institutional investors from Nigeria to invest into other capital markets that are available on the SecondSTAX platform,” he explained. Tawiah noted that the Nairobi Securities Exchange (NSE) and the Ghana Stock Exchange (GSE) have already been onboarded into the platform channeling investment into these exchanges from across the continent stressing that this collaboration with NGX, Africa’s second-largest stock exchange, further expands the scope of investment.
According to him, efforts are underway to onboard other African markets like the Johannesburg Stock Exchange, Egyptian Exchange, Bourse de Casablanca among others.
While noting that Nigeria’s capital markets have historically presented lucrative investment opportunities, achieving global recognition for its impressive performance, the isolated nature of African exchanges had restricted these opportunities primarily to residents of each respective country.
“SecondSTAX continues its mission to build technology solutions that promote the smooth flow of capital across the continent. By securely and efficiently routing orders within the framework of local regulations, the platform empowers African investment firms to better serve their clients and, in turn, capitalize on growth opportunities.”
The Chairman of NGX, Umaru Kwairanga, while expressing delight said, “As an organisation, we support this product, which closely aligns with our ongoing efforts through the African Exchange and the Pan-African Payment Settlement System, geared at smoothening cross-border settlement across Africa while reducing costs associated with trading and currency exchange.”
He noted that perhaps the most intriguing benefit was that investors will be able to invest in their native currencies, making a wider range of assets and opportunities available to more Africans and creating an efficient route to increase wealth on the continent.
On his part, NGX CEO, Temi Popoola, applauded SecondSTAX for its visionary solution to drive institutional investments across Africa.
Popoola emphasized how this aligns with NGX’s efforts to foster innovation and growth within the African capital market. And it was coming at a time that the new administration seeks to woo more investors into the nation’s market. “We look forward to the opportunities this partnership with SecondSTAX will unlock and the positive impact it will have on the continent,” Popoola added.