The Central Securities Clearing Systems Plc, Central Depository Settlement Corporation Limited in Kenya and Altree Financial Group have established a company, Africlear, to support the development of financial market infrastructure across Africa.
Africlear, according to a statement from the CSCS, is meant to support the improvement of market infrastructure on the continent through the promotion of industry-leading technologies designed to enhance the efficiency of capital markets and better regulation across Africa.
As part of efforts to achieve their objective, the founders of Africlear have partnered with the African Development Bank to sign a seed equity investment of $400,000.
Established to promote diversification of revenue streams and cross-border investment flows, among others, the partnership is said to have the potential to drive new products, expand trading activity, offer value-added services and boost its ability to attract new foreign capital.
“Africlear Limited will facilitate the development and adoption of new revenue generating asset-servicing programmes/applications by members based on their market needs, regulatory environment and timelines,” the statement said.
The company, which held its first board meeting in Nairobi recently, said the immediate benefits included improved access to a wider menu of comprehensive securities services, greater collaboration between countries, and more cost-effective pricing of securities market infrastructure.
The Chief Executive Officer, CDSC, Kenya, Rose Mamba, was quoted to have said, while accepting the board’s nomination as Africlear’s first Chairperson, that the new company would positively impact the financial markets.
“Africlear members will be able to realise significant cost savings via collective bargaining with industry participants and technology vendors,” she said.
On his part, the Managing Director and Chief Executive Officer, CSCS, Mr. Kyari Bukar, who is also a board member of Africlear said the company would accelerate process standardisation and promote system integration across borders.
He said, “By employing industry best practices, Africlear will facilitate improved levels of transparency and corporate governance within the African capital markets.”
This, he said, would enable local market practitioners to effectively compete more for domestic and international capital.
The statement by Africlear explained that by delivering shared economies of scale, the company would enable its members to offer a greater menu of services ranging from corporate actions processing to collateral management to clearing and settlement.
“Africlear supports an open market place where scale and connectivity serve as the company’s competitive strengths,” the Chairman of Altree Financial Group, Mr. Anthony Fischli, was quoted as saying.
He added, “The AfDB investment in Africlear Global supports the improvement of securities market infrastructure through promotion of industry-leading technologies designed to enhance the underlying efficiency and overall functioning of the African capital markets.”
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