Durrant Pate/Contributor

The Jamaica Stock Exchange (JSE) is deepening its association with the African continent having signed a groundbreaking memorandum of understanding (MoU) with the Nairobi Securities Exchange (NSE) in Kenya.

The JSE is now partnering with a growing list of countries across Africa and last year signed an MOU with Ghana and remains in dialogue with other states such as Sierra Leon, as it works to strengthen African-Caribbean relations. Banking on the tenets of commonality, a shared past and common objectives, markets across both regions believe they can work together for the common good.

This latest MOU delineates ambitious plans to enhance both financial markets with innovative product offerings, notably featuring green bonds and real estate investment trusts (REITs). Moreover, both exchanges are set to collaboratively facilitate the cross-listing of companies, opening avenues for expanded investment opportunities and enhanced market liquidity.

Collaborative journey together

As the JSE and the NSE embark on this collaborative journey, they are being positioned to establish a precedent for financial cooperation and innovation, showcasing the potential for mutually beneficial partnerships in the global economic landscape. 

Through this MoU they are formalising a new chapter in financial market collaboration. This historic agreement is poised to elevate their partnership to new heights, fostering a more resilient and diversified financial landscape. 

Kenya and Jamaica entered into a bilateral relationship under the visionary leadership of retired Kenyan President Uhuru Kenyatta and Prime Minister Andrew Holness. This strategic alliance signifies a deepening of ties between the two nations. 

Beyond the financial realm, Jamaica and Kenya share compelling similarities from climate conditions to a legacy of producing outstanding sporting talents, exquisite coffee flavors, alluring tourism attractions, and picturesque beaches, further solidifying the natural affinity between these two nations.

The work of JSE managing director, Marlene Street Forrest; CEO of the Nairobi Securities Exchange, Geoffrey Odundo; and Kenyan exchange chairman Kiprono Kitony, who played pivotal roles behind the scenes in achieving this momentous milestone were recognised.

Ugas Mohammed, chairman of the Kenya Capital Markets Authority, and Wycliffe Shamiah, Kenya Capital Markets Authority’s chief executive, as well as other key contributors were also recognised.

In a virtual signing ceremony earlier this week Street Forrest in welcoming the historic partnership said it “unlocks an enormous opportunity for the cross listing of stocks and other investments by locals in the African country and vice versa. This, as it also opens avenues for closer collaboration guided by mutually agreed principles.”

Expressing similar sentiments, Odundo, the NSE chief executive officer, called for scaled-up relationships in light of the cultural similarities, which he added would offset the need to have more tangible deliverables.