Cross listing of ETFs on Johannesburg, Lagos and Nairobi stock exchanges: Coming soon

There is a move afoot that will lead to improved liquidity on Africa’s exchanges. This move will see increased cross listings of Exchange Traded Funds (ETFs) on the larger exchanges on the continent. There is a concerted effort from ETF issuers in various markets to cross list new and existing ETFs on to other exchanges, and the exchanges themselves are working to ensure that the right frameworks are in place to enable this. 

Discussions are currently underway between market participants in Nigeria, Kenya and South Africa to launch the cross listing of Exchange Traded Funds (ETFs).

ETFs are a collection of equities, commodities or bonds bundled together in a fund to ensure that investor risks are evenly spread across this range of securities. ETFs are typically based on specific index-related securities that are listed on a stock exchange, making it possible to invest in a diverse range of securities through a single exchange traded product.

Read more: Cross Listing of Exchange Traded Funds