Coming back from the dead, Somalia to establish Stock Exchange

[Mooge]

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.

[Mooge]

Kenya to support establishment of Somali stock exchange

 

The Nairobi Securities Exchange (NSE) signed a memorandum of understanding with the Somalia Stock Exchange Investment Corporation (SSE) on Wednesday (August 8th) to establish a Somali stock market, Business Daily Africa reported.

 

"SSE shall be responsible for the implementation of the project and its subsequent operation. The NSE shall have primary responsibility for the technical development of the project," the NSE said in a statement.

 

Donald Ouma, NSE head of marketing and product developemnt, said the agreement will help attract investments by the large Somali community in Kenya.

 

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. It makes sense to explore business opportunities as the situation in Somalia stabilises," Ouma said.

 

Kenya has assisted other countries in establishing stock markets, including Rwanda and Burundi.

[Mooge]

 

Ambassador Ciid Beddel

[GaadhHaye]

Mooge;855642 wrote:

Kenya to support establishment of Somali stock exchange

 

The Nairobi Securities Exchange (NSE) signed a memorandum of understanding with the Somalia Stock Exchange Investment Corporation (SSE) on Wednesday (August 8th) to establish a Somali stock market, Business Daily Africa reported.

 

"SSE shall be responsible for the implementation of the project and its subsequent operation. The NSE shall have primary responsibility for the technical development of the project," the NSE said in a statement.

 

Donald Ouma, NSE head of marketing and product developemnt, said the agreement will help attract investments by the large Somali community in Kenya.

 

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. It makes sense to explore business opportunities as the situation in Somalia stabilises," Ouma said.

 

Kenya has assisted other countries in establishing stock markets, including Rwanda and Burundi.

Somalia should not rush to establish stock exchange untill the Somali Central Bank is fully operational.

[Carafaat]

GaadhHaye;855657 wrote:

Somalia should not rush to establish stock exchange untill the Somali Central Bank is fully operational.

Central Banks regulate the monetary market and policy. And they regulate supply and demand side of money, thus banks.

 

Stock markets bring together investors and those in need of investment(traders, companies). This could be as well livestock trade. The stockmarket facilitates and regulates itself this market as a sort middle man. Regulations from a central bank are not needed for the trade.

 

But a Central Bank is needed to regulate,monitor and facilitate banks.