What is Bourse Africa and how does it help the South African market

One of the fastest growing regions which is attracting investors’ from across the world is Africa, esp. Bourse Africa for that matter. Bourse Africa is Africa’s first continental spot and derivatives exchange, central counterparty clearing house and depository platform offering trade in commodities, currencies and other asset classes.

Bourse Africa aims towards offering, the investors’ at large, opportunities for physical delivery and attainment including hedging, arbitrage and investments. Africa has been exploited by many other powerful nations, however, since past few decades it has also seen some steep growth trends. As the years are passing by, Africa is showing vast improvement in terms of stability and good governance. In fact, the investor fraternity has also stepped into the African domain sensing great investment opportunities.

Let us look at the various key drivers, Bourse Africa promises to attain growth.

  1. It aims at the development and introduction of new products, instruments and asset classes;
  2. Provides geographical expansion across African countries;
  3. Offers broader market access to new categories of African and international market participants;
  4. Leveraging membership of Financial Technologies (FT) group of exchanges to increase membership and order flow;
  5. It also creates avenues for strategic initiatives partnerships with exchange and ecosystem partners.

Looking at the current trend, the financial markets outside South Africa and similar markets including commodity exchanges are usually restricted to small scale in terms of cash and capability. Even though there have been difficult situations and these markets have soared during such situations, Bourse Africa coordinates with such markets and endeavours to partner with them in its ‘spoke’ exchanges to bring in enhanced trading opportunities, viz., methodologies, technologies, expertise, capacity-building and management of the physical commodity.

In other words, analysts’ have quoted that Bourse Africa is designated as the world’s first combined spot and derivatives platform. It is an exception to other commodity or derivatives financial markets which do not serve the African economy. It is a distinguished platform which serves an efficient, secure stage for procurement, risk management; even trading across borders in Africa. It is one of those rare platforms which is present outside South Africa and protects the African currency, interest rates or equity risks. It can also be said that Bourse Africa is one of those critical instruments that allows the African market participants to create a competitive environment with their peers in other parts of the world.