Bourse Africa takes Root in Botswana

Posted by Staff Writer on Saturday, November 28, 2009 at 1:47am.

Bourse Africa is the first pan-African spot and / or derivatives multi asset exchange to offer trading in commodities, currencies, bonds and diamonds, under the regulatory framework of the Non-Bank Financial Institutions Regulatory Authority(NBFIRA).

The exchange will have a pan-African presence through a hub and spoke model that will connect all the major countries in Africa. Operating out of Botswana, Bourse Africa is accredited to the Botswana International Financial Services Centre (IFSC).

Bourse Africa will serve financial and commodity market participants and investors, both African and international, to provide possibilities for hedging, arbitrage and investment.  The exchange will be a catalyst  improved performance in African commodity and financial markets through enhancing price discovery, market transparency, risk management, cross-border economic integration, finance and investment on the Continent.

Financial Technologies India Ltd (FTIL) group has inked a deal to acquire a 60 per cent stake in Bourse Africa Limited.  MCX is Bourse Africa’s strategic domain partner. Financial Technologies operates one of the world’s largest exchange network connecting deep, vibrant and liquid financial markets in the fast-growing economies of Africa, Middle East, Central Asia,
India and other Asian countries.

It has 10 exchanges (including Bourse Africa) and 7 ecosystem ventures. MCX is India’s number one commodity exchange and amongst the ten largest exchanges of the world.  Other financial services ecosystems that are planned to be set up include a Clearing Corporation, Warehouse Receipt

“Financial Technologies is a market leader in exchange and distribution technologies not only in India, but also in Dubai, Mauritius and Singapore. Its proven next - generation technology platform coupled with domain expertise in creating and operating successful exchanges and ecosystem
ventures, makes it the partner of choice to ensure that Bourse Africa emerges amongst the top global exchanges,” Goromonzi said.

“Through Bourse Africa, we envisage a level playing field for African stakeholders in global financial and commodity markets. The exchange will bring to the continent modern financial instruments seen in other regions of the world. This will lead to enhanced price discovery, market transparency, price risk management, cross border economic integration, finance and investment on the continent,” said Lamon Rutten, Joint Managing Director, MCX, India’s number one commodity exchange and amongst the ten largest exchanges of the world.

Bourse Africa is another milestone towards achieving their vision of creating one of the world’s largest exchange networks connecting deep, vibrant and liquid financial markets in the fast-growing economies of Africa, Middle East, Central Asia, India, China and other Asian countries.

It is their tenth exchange and the first in Africa with hub and spoke model. The exchange will connect all major African countries to create a pan-African platform for trading within the continent and with rest of the
world.