NAIROBI, Kenya, Aug 8 – The Nairobi Securities Exchange (NSE) has entered into a Memorandum of Understanding (MoU) with the Somalia Stock Exchange Investment Corporation (SSE) for technical support in setting up a stock market in the lawless neighbouring country.
NSE Chief Executive Officer Peter Mwangi noted that the Memorandum of Understanding was the first step in the journey that would see the development and implementation of a self sustaining stock exchange in Somalia.
“The NSE shall have primary responsibility for the technical development of the Somalia Stock Exchange including identifying the most suitable partners and expertise for the operations of the Somalia Stock Exchange,” he said.
Deputy Permanent Representative of Somalia to the United Nations Idd Mohamed, who was the principal signing on behalf of the SSE stated, “The SSE shall be responsible for the implementation of the Somalia Stock Exchange and its subsequent operation. We are very pleased that NSE has accepted to be our technical partners.”
“We are aware that NSE is a founding member of the African Securities Exchanges Association (ASEA) and the East African Securities Exchanges Association (EASEA),” he noted.
He pointed out that the NSE has been involved in the development of other markets in the region.
“Through EASEA, the regulations and standards of the EAC stock exchanges have progressively been harmonized. The members of EASEA also share the same technology provider,” he added.
Both the NSE and the SSE will explore the location of the Exchange, development of human capital, the trading mechanism and the development of Shariah products and services.
Mwangi noted that the NSE is pleased to assist the people of Somalia to develop their capital markets and particularly to assist in the integration of Kenyan markets in Eastern Africa.