NSE signs pact with China’s Shenzhen Stock Exchange to widen capital resource base for MSMEsOctober 16, 2019
NAIROBI, Kenya, Oct 16 – The Nairobi Securities Exchange (NSE) has partnered with Shenzhen Stock Exchange (SZSE) to link the Micro, Small and Medium Enterprises (MSMEs) in Kenya to investors in Shenzhen to allow a capital formation platform on a larger scale.
The two Exchanges launched for the first time on Wednesday, a joint investor forum dubbed the China-Kenya Capital Market Service Initiative, that will see SME’s in Kenya attract more investors.
This has seen the two entities sign a Memorandum of Understanding, in line with NSE’s vision “to be the leading securities exchange in Africa with a global reach.”
NSE and SZSE agreed that China and Kenya have great potential for economic cooperation, which is witnessing rapid growth in both countries. Capital is an important factor in boosting the development of the real economy.
Further, both Exchanges agreed that capital market services should facilitate capital formation for companies at different stages of development.
Some of the key objectives of this initiative include the ability to showcase the Kenyan capital market to Chinese investors and vice versa and build relationships between China and Kenya stakeholders to improve the understanding of each market.
Speaking during the forum, Chief Executive NSE Geoffrey Odundo said the partnership also boosts the relationship amongst different partners across the border.
“Our collaboration with the Shenzhen Stock Exchange is deliberate and strategic. It is geared at achieving several goals including; encouraging seamless cross-border access between our capital markets to ultimately drive deeper capital markets,” said Odundo.
Deputy Director-General, Technology Management Committee of Shenzhen Stock Exchange Wenhai XIE also created an opportunity for future investments.
“There will be great potential for future cooperation. My visit to Kenya this time also shows our aspiration to deepen cooperation,” said XIE.
The two Exchanges also launched the Ibuka and V-Next Connect – a joint initiative which aims at promoting cross-border growth of Micro, Small and Medium-sized Enterprises (MSMEs) in Kenya and Shenzhen.
The collaboration between the NSE and SZSE is aligned with the long-standing China-Kenya Bilateral Ties which seek to boost trade and development in both countries.