Kenya and Nigeria central depositories ink key pact
By Frankline Sunday | May 5th 2015
Kenya and Nigerian central depositories have partnered in a move that will see investors in the two countries benefit from key information sharing and investor support services.
This comes as Kenya’s Central Depository and Settlement Corporation (CDSC), Nigeria’s Central Securities Clearing System (CSCS) and financial company Altree Financial Group came together to pool their resources to better the security exchanges in both countries.
The new unit dubbed Africlear Global, has further received support from the African Development Bank (AfDB).
CDSC Kenya Chief Executive Rose Mambo, who has been nominated as Africlear’s first chairperson, said the partnership will enable central depositories across Africa to easily identify, acquire and maintain critical systems and financial technology.
“Africlear members will be able to realise significant cost savings via collective bargaining with industry participants and technology vendors,” said Ms Mambo.
Africlear will also allow its members to offer more services ranging from corporate actions processing and collateral management to clearing and settlement.
Her Nigerian counterpart Kyari Bukar said Africlear will accelerate process standardisation and promote system integration across the borders.
“By employing industry best practices, Africlear will facilitate improved levels of transparency and corporate governance within the African capital markets,” he said.
“This will enable local market practitioners to effectively compete for domestic and international capital.”
Africlear board members include Bukar, Altree Financial Group Chairman Anthony Fischli and an as yet to be determined representative from the AfDB.
Africlear which held its first board meeting in Nairobi on Friday last week, said the immediate benefits will include improved access to securities services, collaboration between countries and cost-effective pricing of securities market infrastructure.
“Africlear supports an open marketplace where scale and connectivity serve as the company’s competitive strengths,” said Fischli.
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