Somalia’s newly-launched National Securities Exchange (NSES) has opened talks with four Kenyan companies interested in cross-listing on the Mogadishu-based stockmarket.

 

This came as reports indicated that the stockmarket has been bolstered by $2 billion worth of annual remittances by Somalis living abroad.

The NSES, inaugurated in June, marks a pivotal step in Somalia’s financial evolution as it aims to start trading in early 2026. Its CEO, Yasin Ibar, said talks are going on with Kenyan firms from different sectors to sell shares to Somalis.“We’ve received interest from Kenyan listed companies for cross-listing. We Are in discussions. We expect about four companies from financial services, real estate and logistics to list on NSES,” Mr Ibar told The EastAfrican.

He however declined to mention the names of the companies saying it could jeopardise the ongoing discussions.

If successful, the listing of Kenyan companies in Mogadishu would see Somali investors benefit from both capital gains and dividend payouts.

Across East Africa, eight Kenyan companies have cross-listed their shares in multiple stockmarkets. These companies include Nation Media Group (NMG), KCB Group, East African Breweries Plc (EABL), Kenya Airways and Jubilee Holdings, which are listed on the NSE and are cross listed at the Ugandan Securities Exchange (USE) and Dar es Salaam Stock Exchange (DSE).

Equity Bank, NMG, KCB and Uchumi Supermarkets are also cross-listed on the Rwanda Stock Exchange (RSE), while Centum Investments is cross-listed on the USE. Equity Bank is also listed on the USE.

In Rwanda, a South African healthcare investment firm RH Bophelo Ltd, whose primary listing is on Johannesburg Stock Exchange (JSE) is cross listed.

Only two companies from EAC partners have cross-listed on the Nairobi bourse. Bank of Kigali became the second firm from the region to cross-list in 2018, after Uganda’s utility Umeme, which cross-listed in 2012.

Mogadishu is looking to tap $2 billion in investments from the Somali diaspora to strengthen operations as it prepares to open up to public investments early next year.

He said several companies in the telecommunications and energy sectors have expressed interest in listing, with the first IPO expected in January or February 2026.“We’ve engaged many stakeholders, including potential listing candidates. The telecom and energy sectors have shown strong interest, asking detailed questions about joining the market. We expect them to be among the first to list,” Ibar said.

The exchange is initially targeting energy, telecommunications, and banking, real estate, and agriculture sectors.

It also plans to issue government-backed Shariah-compliant Sukkuk (bonds) to finance infrastructure and development projects, as well as Real Estate Investment Trusts.

© Copyright 2022 Nation Media Group. All Rights Reserved. Provided by SyndiGate Media Inc. (Syndigate.info).