Kenya’s NSE inks deal with Somalia counterpart

Nairobi Securities Exchange (NSE) has entered into a Memorandum of Understanding (MoU) with The Somalia Stock Exchange Investment Corporation (SSE) a move meant to establish exchange programmes regarding the stock markets.

The MoU will involve co-operating to establish a securities exchange business involving the trading, settlement, delivery and other stockbrokerage activities.

While signing the MOU on behalf of the NSE in Nairobi, NSE’s CEO Mr Peter Mwangi lauded the move calling it ‘the first step in the journey that would see the development and implementation of a self sustaining stock exchange in Somalia.’

“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,” said Mr Mwangi.

Ambassador Idd Mohamed, Ambassador Extraordinary and Deputy Permanent Representative of Somalia to the United Nations, who signed the MoU on behalf of his government, said: “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.”

With NSE being a founder member of the African Securities Exchanges Association (ASEA) and the East African Securities Exchanges Association (EASEA), Mohamed noted the contribution that had NSE had made in the development of other markets in the region.

Both NSE and SSE will explore the location of the Exchange, development of human capital, the trading mechanism and the development of shariah products and services.

Mr. Peter Mwangi, noted that the Nairobi Securities Exchange is pleased to assist the People of Somalia to develop their capital markets and particularly to assist in the integration of our markets in Eastern Africa.