By ETimes
HARARE – The Committee of SADC Stock Exchanges (CoSSE) has validated the principles and operational model for the Interconnectivity Hub Project.
The validation, confirmed during a meeting held on September 11, 2024, marks a key milestone toward establishing a unified market and production base within the region.
The project, launched in 2014, aims to create a multi-directional trading link among SADC stock exchanges. By facilitating seamless cross-border investments and trading, it will contribute to the region’s economic integration.
“This initiative seeks to harmonize listing and trading rules, alongside enhancing block trading in corporate bonds and various currencies,” CoSSE chairman Collen Tapfumaneyi said.
He emphasized the importance of the Smart Order Router (SOR) platform in achieving these goals.
The validation now paves the way for the procurement and implementation of the SOR, which will allow both regional and international investors to trade securities across SADC countries under existing laws and regulations.
“Our goal is to integrate financial markets and enhance domestic resource mobilization for regional projects,” said Banda Lufeyo of the African Development Bank (AfDB), the project’s primary financier.
Lufeyo underscored AfDB’s commitment to fostering long-term regional stability through financial integration.
The project’s broader objective is to make the SADC region more attractive to portfolio investments by increasing transaction volumes and liquidity.
“This is a significant milestone that is expected to elevate SADC’s profile in capital markets,” noted SADC representative Sadwick.
The initiative is also aligned with the AfDB’s US$$7 million grant aimed at supporting macroeconomic stability and financial integration within SADC, further strengthening the region’s Real Time Gross Settlement (RTGS) system.
With CoSSE comprising 14 stock exchanges across 13 SADC member states, the Interconnectivity Hub Project is positioned to be a transformative force in regional economic development.