ASEA - African Securities Exchanges Association · He is the immediate past Vice President of the African Securities Exchanges Association (ASEA) and currently a member of the Executive

1

ASEA Yearbook

2009

African Securities Exchange Association

ASEA Member Countries

ASEA Member Exchanges

1. JSE Limited

2. Bolsa de Valores de Cabo Verde

3. Botswana Stock Exchange

4. Casablanca Stock Exchange

5. Bourse de Tunis

6. Dar-es-Salaam Stock Exchange

7. Douala Stock Exchange

8. Egyptian Exchange

9. Ghana Stock Exchange

10. Libyan Stock Exchange

11. Lusaka Stock Exchange

12. Mozambique Stock Exchange

13. Nairobi Stock Exchange

14. Stock Exchange of Mauritius

15. Uganda Securities Exchange

16. Bourse Régionale des Valeurs Mobilières

17. The Namibian Stock Exchange

18. Khartoum Stock Exchange

Table of Contents5

PROFILES OF ASEA EXECUTIVE COMMITTEE MEMBERS

12 PRESIDENT’S LETTER

18 BRIEF ON ASEA

19 - Summary of Highlights

19- The name of the Association is “African Securities Exchanges Association” (ASEA)

19 - When was the association created?

20 - Where is the secretariat located?

20 - What is the main role of the association?

20 - Members of the Association

22 - Conferences

22 - Upcoming Conferences

23- Which are the governmental bodies at the national or international level that the association interacts with, if any?

25 MAIN ECONOMIC INDICATORS

35 MEMBER EXCHANGE PROFILES

36 • JSE Limited

51 • Bolsa de Valores de Cabo Verde

65 • Botswana Stock Exchange

78 • Bourse de Casablanca

92 • Bourse de Tunis

105 • Dar-es-Salaam Stock Exchange

116 • Douala Stock Exchange

129 • Egyptian Exchange

144 • Ghana Stock Exchange

155 • Libyan Stock Exchange

164 • Lusaka Stock Exchange

176 • Mozambique Stock Exchange

184 • Nairobi Stock Exchange

199 • Stock Exchange of Mauritius

211 • Uganda Securities Exchange

221 • Bourse Régionale des Valeurs Mobilières

230 • The Namibian Stock Exchange

241 • Khartoum Stock Exchange

253REPORT AND FINANCIAL STATEMENTS

Profiles of ASEA Executive

Committee Members

6 ASEA Yearbook 2009

Professor Dr. Khaled Serry

Professor Dr. Khaled Serry is the Chairman of the Egyptian Exchange. He is also a visiting

Professor at Jean Moulin University, Lion, France.

Before joining the Egyptian Exchange, Dr. Khaled was the Vice President Egyptian Financial

Supervisory Authority, Legal Advisor to the Minister of Finance, Legal Advisor to the Public

and Private Sectors Partnership Unit, and a Member in the Capital Market Legislations

Improvement Committee for non banking funding activities.

Dr. Khaled holds a Ph. D. in Law from Jean Moulin University, Lion 3, France 2001 and a

Bachelor of Arts, Faculty of Law, Ain Shams University, Egypt.

7

Joseph S. Kitamirike

Mr. Kitamirike is the Chief Executive of Uganda Securities Exchange, having been appointed

in August 2010.

In his previous assignments he worked as CEO of National Housing & Construction Company

between 2005 and 2010, as Commissioner for Industry & Technology between 2003 and 2005

and as a Research Analyst at General Electric Capital Corp., Stamford, Connecticut. He also

worked with Uganda Development Bank and Uganda Investment Authority in the 1990s.

Mr. Kitamirike holds a B.Sc. (Eng.) (Hons.) in Mechanical Engineering and an MBA (Finance)

from the University of Connecticut, USA.


Geoff Rothschild – CA (SA), Chartered Marketer (SA)

Director: Government & International Affairs

Geoff Rothschild is an immediate past Chairman of the JSE and was a member of the board

from 1991 - 2008. Geoff currently holds the position of Director: Government and International

Affairs promoting the JSE. After qualifying as a Chartered Accountant he spent 30 years in

the stockbroking industry with Sasfin Frankel Pollak Securities. Initially he was in charge of

administration, followed by the positions of Financial Director, Joint Managing Director and

finally Marketing Director.

Geoff focuses on African Stock Exchanges, has chaired the Committee of SADC Southern

African Developing Countries) Stock Exchanges (CoSSE) since 2004, is Deputy President of the

African Stock Exchange Association (ASEA). He is a Director of the NEPAD (New Partnership

for Africa’s Development) Business Foundation and is on their Operating & Audit Committees.

He is a Council Member of the National Advisory council for Innovation (NACI) which advises

the Minister of Science and Technology and an Honorary Fellow of the Da Vinci Institute of

Technology. Besides this he also assists with various charitable organisations for example

NOAH (Nurturing Orphans of Aids for Humanity, CHOC (Childhood Cancer Foundation),

Education Africa, the Nelson Mandela Children’s Hospital, and the Football Foundation of

SA.

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Mr. Ekow Afedzie

MR. EKOW AFEDZIE, is currently the Deputy Managing Director of the Ghana Stock Exchange.

He was educated at the University of Ghana, Legon, Ghana where he obtained a Masters Degree

in Business Administration in 1989. He joined the Ghana Stock Exchange in 1990 when it was

established and has risen through the ranks to become the Deputy Managing Director of the

Stock Exchange.

He is the immediate past Vice President of the African Securities Exchanges Association (ASEA)

and currently a member of the Executive Committee of ASEA.

Mr. Afedzie has been one of the strong pillars behind the growing success of the Ghana Stock

Exchange. He is experienced in stock market operations and has participated in many

international conferences on Stock Market issues. He has also made contributions to local and

international research on stock markets, and presented papers on stock market operations at

many local and international fora.

Mr. Afedzie was the Project Manager for the recent automation of the Ghana Stock Exchange

and he is currently coordinating the Integration of West Africa Stock Markets and the

demutualization projects at the Exchange.


Peter K. Mwangi, CFA

Peter Mwangi is the Chief Executive of the Nairobi Stock Exchange. He is also a Director of

the Central Depository and Settlement Corporation in Kenya, and a Member of the Executive

Committees of both the African Securities Exchanges Association (ASEA) and the East African

Securities Exchanges Association (EASEA).

Before joining the Exchange, Peter was the Managing Director of Centum Investment. Centum

is the largest publicly quoted investment company in the East African region.

Peter holds a Bachelor of Science degree in Electrical Engineering from the University of

Nairobi. He is a Certified Public Accountant of Kenya and a CFA charterholder.

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Sunil Benimadhu

Sunil Benimadhu is the Chief Executive of the Stock Exchange of Mauritius (SEM). He has

also spearheaded the project to enable the SEM join the World Federation of Exchanges, a key

standard-setter in the stock exchange industry. Sunil has been elected President of the African

Securities Exchanges Association (ASEA) on the 30th August 2010. He was a member of the

Executive Committee of the South Asian Federation of Exchanges (SAFE), and the Chairman of

the SADC Committee of Stock Exchanges (COSSE). Sunil is also a regular speaker on emerging

markets and on African markets in international stock exchange conferences.

Before joining the SEM, Sunil worked in the Treasury Department of the African Development

Bank (ADB). He was the General Manager of the National Mutual Fund Limited in Mauritius

and played an instrumental role in the structuring, marketing and setting up of the National

Investment Trust Limited, one of the largest investment trusts listed on the Exchange.

Sunil Benimadhu holds a MBA in Finance and Investment from the University of Illinois,

United States. He also holds a D.E.A in Development Economics and a Maîtrise in Macro-

Economics from the University of Aix-Marseille, France.

THE STOCK EXCHANGE OF MAURITIUS LTD


Africa is increasingly being viewed by investors worldwide as a very promising investment

destination with strong present and future growth potential. The continent’s rise to

prominence as an attractive investment destination stems from the conjunction of a

number of key positive factors.

Africa is home to 25% of the world’s resources and is well-positioned to gain from the

gradual shift of the balance of economic power from the West to the East, pointing to

an increased demand for Africa’s resources from the highly populated and fast growing

economies of the East.

Many African countries have achieved growth rates exceeding 5% in recent years and

have embraced fundamental structural reforms programmes that have set them firmly on

the path of strong and sustainable future growth. African stock markets have been among

the best performers between 2000 and 2010, offering local and international investors

annualized double-digit returns in US dollar terms. Growth prospects in the developed

world look anaemic at best and international investors are growingly looking for superior

returns outside of their traditional markets. African countries and African stock markets

are considered as the last growth frontier in the world.

The key to maintaining sustained interest in the continent’s investment opportunities,

in my view, lies in the commitment to an African vision that involves the pursuit of

excellence at all levels, the embracement of democratic principles and good governance at

President’s Letter

Sunil Benimadhu

President,African Securities

Exchanges Association

13

the highest decision-making levels, the implementation of inclusive growth that improves the

living standards of all social classes and the continued improvement of the business climate

in Africa.

The prominent role of African Stock Exchanges in harnessing Africa’s growth opportunities

African Stock Exchanges will be called upon to play an increasingly important role in the

coming years to accompany and reinforce the transformational process in Africa. Stock

Exchanges can become powerful platforms for capital raising by both African companies as

well as international companies operating out of Africa and contribute in a meaningful way

to the democratization process of African countries by enabling a larger pool of Africans to

obtain a stake in the listed companies, benefit from their growth potential and become actors

of Africa’s transformation.

During the 2005-2010 period, stock markets in Africa have played an increasingly important

role in providing capital to the private sector, particularly in the financial services and

telecommunications sector. Between 2007 and 2009, over USD 10 billion of share capital

was raised across 18 Stock Exchanges, mostly through the listing of 170 new companies. The

ten largest markets is Africa have seen their market capitalization grow from USD 222 billion

to over USD 700 billion from 2002 to 2008, achieving an annualized growth rate of 18%

during this time frame. Stock Exchanges have also played an important role in providing local

savers, alternative investment vehicles to the traditional bank deposits that were hitherto the

only form of organized investment instrument available.

As the interest on Africa as an attractive investment destination gathers further momentum,

it would be interesting for ASEA, as the apex body of Stock Exchanges in Africa, to reflect

on a value-enhancing action plan that can strengthen the role of African Stock Exchanges in

harnessing Africa’s growth opportunities.

‘The ten largest markets is Africa have seen their market capitalization grow from USD 222 billion to over USD 700 billion from 2002 to 2008, achieving an annualized growth rate of 18% during this time frame.


ASEA: Shaping up the future of African Exchanges

ASEA has steadily raised its profile over the years, growing in number and succeeding

in attracting new Exchanges to join the Association. Moreover, ASEA has successfully

implemented a number of key initiatives to raise the visibility of African Exchanges at the

international level and has actively participated with other institutions to sponsor events

linked to the promotion of African Stock markets. Going forward, ASEA can further crystallise

the growing interest on Africa by pursuing the following initiatives:

1. ASEA should position itself as the organization of reference and of choice for any

investor who is willing to obtain first hand information on African markets. To achieve

this objective, it is fundamental that ASEA’s website becomes a key source of dynamic

and updated information for the international investment community.

2. The experience of other similar regional international associations such as the World

Federation of Exchanges (WFE) clearly underscores the importance of having a

permanent secretariat which is entirely devoted to the activities of the Association and

is responsible for implementing the plan/vision set by the Executive Committee of

ASEA. The need of setting up a Permanent Secretariat to drive ASEA’s agenda and

scale up ASEA’s activities in a meaningful way needs to be discussed.

3. ASEA’s Secretariat needs to undertake a thorough assessment of the activities and

organisational aspects of other Exchange associations in other parts of the world and

come up with a proposal of activities that ASEA may need to pursue to scale up its

activities.

4. ASEA needs to endorse the important role of increasing the visibility of African markets

at the international level. The different ways and means of achieving this objective

need to be discussed and a concrete action plan for the next two years be determined.

‘ASEA should position itself as the organization

of reference and of choice

for any investor who is willing to obtain first hand

information on African markets.

15

5. ASEA needs to finalise discussions with a major index provider to come up with credible

African Index that will be jointly owned with the Index provider. This African Index needs

to emerge as an attractive benchmark for investors investing on African Stock markets.

This index could be used as the reference index for the setting up of an attractive African

ETF that can be listed on different African Exchanges.

6. There is a need to attract more members to the Association, while ensuring a greater

commitment of existing members to the objectives of the Association.

7. ASEA needs to give its support to initiatives that aim at achieving greater integration among

African markets.

Changes in the Executive Committee

ASEA has witnessed some important changes at the level of the Executive Committee in the course

of 2010. The immediate former Vice President, Mr. Simon Rutega resigned from his position as

the Chief Executive Officer of the Uganda Securities Exchange on July 1 2010. On July 14 2010,

Mr. Maged Shawky Sourial who served as the President of the Association from 2005 to 2009,

resigned from his position as Executive Chairman of the Egyptian Exchange. On August 5 2010,

the immediate former President, Professor Ndi Okereke - Onyiuke vacated her position as the

Director General of the Nigerian Stock Exchange. I had the privilege of serving on the Executive

Committee with all of them and I would like to take this opportunity, on behalf of the Association,

to applaud them for their service and contribution towards the development of Africa’s capital

markets. I also want to wish them the best in their future endeavours. During the 20th Executive

Committee meeting on August 30 2010, in Mbabane, Swaziland, your Executive Committee

appointed me as President and Mr. Geoff Rothschild as the Deputy President. We also welcome

on the Executive Committee, the following new members, Dr. Khaled Seery Siam, Mr. Joseph

S. Kitamirike, and Mr. Emmanuel Ikazoboh, representing the Egyptian Exchange, the Uganda

Securities Exchange and the Nigerian Stock Exchange, respectively. We look forward to working

with the new members of the Executive Committee to take the Association to the next level.


Memberships

In the year under review, the Association has admitted the following three securities exchanges:

Bolsa de Valores de Cabo Verde, Bourse de Tunis and Douala Stock Exchange as full members

of ASEA . The number of ASEA members currently stands at twenty one (21) and represents

twenty seven (27) African States - Benin, Botswana, Burkina Faso, Cape Verde, Côte d’Ivoire,

Egypt, Ghana, Guinée Bissau, Kenya, Libya, Mali, Malawi, Mauritius, Morocco, Mozambique,

Namibia, Niger, Nigeria, Sénégal, South Africa, Sudan, Tanzania, Togo, Tunisia, Uganda,

Zambia, and Zimbabwe. The Central Securities Clearing System Ltd of Nigeria is an observer

member and the South Asian Federation of Exchanges (SAFE) is an affiliate member. In August

2010, The ASEA Executive Committee approved the request of the Swaziland Stock Exchange

for a voluntary suspension of its memebership.

Events

The 14th ASEA Annual Conference will be held hosted by the Lusaka Stock Exchange (LUSE ) at

Livingston, Zambia, from 11 – 12 November 2010. The theme of the Conference is “Integration

of African markets through technology”. On behalf of ASEA, I would like to express my sincere

thanks and appreciation to LUSE for taking the lead in organizing this conference at a very

propitious time for African Stock Exchanges. This year again, ASEA has partnered with Africa

Investor (Ai) for the 2010 Ai Index Series Roundtable and Awards, that were held at the premises

of NYSE Euronext in New York on September 17 2010. The Ghana Stock Exchange scoped the

accolade for the most innovative African stock exchange in 2010. The Mauritius Financial

Services Commission was awarded the best African market regulator in the year.

17

Appreciation

In closing, I would like to express my sincere appreciation to your continuing commitment

and support to the Association. We are all well aware that we would not have accomplished

as much, without the dedicated efforts of the Executive Committee members, the Secretariat

as well as all ASEA members.

I would like to end by quoting extracts of the June 2010 McKinsey Global Institute Report:

Lions on the move: The progress and potential of African economies. “Africa’s growth

acceleration resulted from more than a resource boom. Arguably more important were

government actions to end political conflicts, improve macroeconomic conditions, and create

better business climates, which enabled growth to accelerate broadly across countries and

sectors. Africa’s future growth will be supported by external trends such as the global race

for commodities, Africa’s increased access to international capital, and its ability to forge

new types of economic partnerships with foreign investors. Long term growth also will be

lifted by internal social and demographic trends, particularly Africa’s growing labor force,

urbanization, and the related rise of middle class consumers.”

Africa is a continent that holds strong present and future promise. ASEA and African Stock

Exchanges have a key role as the prominent drivers of change in Africa.

Sunil BenimadhuPresidentAfrican Securities Exchanges Association25th October 2010

Brief on

ASEA

19

Brief o

n A

SEA

President : Mr. Sunil Benimadhu,

Secretariat : Mr. Donald Ouma

Website : www.africansea.org

Contact : [email protected]

1. Summary of Highlights

1. The Association has initiated discussions with FTSE

Group with a view to partnering in order to develop,

launch and manage a FTSE branded ASEA index.

2. The 13th Annual General Meeting and Conference of

the Association was held from 2nd – 4th December

2009, in Abuja, Nigeria and was hosted by the

Nigerian Stock Exchange.

3. Following the AGM, on December 2nd 2009, the

officials of the Executive Committee of the African

Securities Exchanges Association are as follows:-

i. President: Mr. Sunil Benimadhu, Chief Executive

Officer: Stock Exchange of Mauritius

ii. Vice President: Mr. Geoff Rothschild, Director:

Government & International Affairs of the JSE

Ltd.

iii. Mr. Joseph S. Kitamirike, Chief Executive

Officer of the Uganda Securities Exchange Ltd.

iv. Dr. Khaled Seery Siam, Executive Chairman of

the Egyptian Exchange

v. Mr. Peter Mwangi, Chief Executive of the

Nairobi Stock Exchange

vi. Mr. Ekow Afedzie, Deputy Managing Director

of the Ghana Stock Exchange

vii. Ms. Yvonne Emordi, Principal Manager:

Strategy & New Products: Nigerian Stock

Exchange Ltd.

2. The name of the Association is “African Securities Exchanges Association” (ASEA).

3. When was the association created?

The African Stock Exchanges Association (ASEA) was

registered in Nairobi on 13th November 1993 with the

object of, inter alia, establishing an association for

systematic mutual cooperation, exchange of information,

materials and persons, mutual assistance and joint

programs between the members. The membership of the

association is open to any Stock Exchange or nascent Stock

Exchange located in the African region. The Association

has been holding annual conferences, which are hosted

by different members each year where issues relevant to

the growth of the regional capital markets are addressed.


Bri

ef o

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SEA 4. Where is the secretariat located?

ASEA Secretariat


Nation Centre, First Floor, Kimathi Street,

PO Box 43633, Nairobi 00100,

Tel: +254 20 2831000

Fax: +254 20 224200

www.africansea.org

5. What is the main role of the association?

1. To establish an association for systematic mutual

cooperation, exchange of information, materials and

persons, mutual assistance and joint programmes

between the members;

2. To promote the establishment of securities exchanges

in all African countries;

3. To promote the development of common standards

of training and professionalism among members of

the Association and other market players;

4. To promote common standards of issuing, listing,

trading and settlement of securities;

5. To facilitate the development and promotion of

products and services for Africa’s capital markets;

6. To assist members in the promotion and development

of the range of services associated with the capital

markets;

7. To develop and promote a data bank and

information system for the mutual benefit of

members;

8. To study, and research on matters of mutual interest

to members;

9. To disseminate information; produce materials in all

media, hold conferences, seminars and exhibitions,

and conduct other public education activities

relevant to the interests of members;

10. To ensure that the views and interests of the

Association are promoted in the appropriate

worldwide fora; and

11. To do all other things, not inconsistent with the

foregoing as shall promote the objects and powers.

6. Members of the Association

Full Members

1. Bolsa de Valores de Cabo Verde

2. Bolsa de Valores de Moçambique

3. Botswana Stock Exchange

4. Bourse de Casablanca

5. Bourse de Tunis

6. Bourse Régionale des Valeurs Mobilières de l’Afrique

de l’Ouest

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Brief o

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SEA

7. Dar-es-Salaam Stock Exchange

8. Douala Stock Exchange

9. Egyptian Exchange (formerly Cairo and

Alexandria Stock Exchanges)

10. Ghana Stock Exchange

11. JSE Ltd

12. Khartoum Stock Exchange

13. Libyan Stock Market

14. Lusaka Stock Exchange

15. Namibian Stock Exchange

16. Nairobi Stock Exchange

17. Nigerian Stock Exchange

18. Malawi Stock Exchange

19. Uganda Securities Exchange

20. Stock Exchange of Mauritius

21. Stock Exchange of Swaziland (following a voluntary

request, suspended since August 30 2010)

22. Zimbabwe Stock Exchange

Observer Member

1. Central Securities Clearing System Ltd. (Nigeria)

Affiliate Member

1. South Asian Federation of Exchanges (SAFE)

The full members represent twenty seven (27) African states

- Benin, Botswana, Burkina Faso, Cape Verde, Côte d’Ivoire,

Egypt, Ghana, Guinée Bissau, Kenya, Libya, Mali, Malawi,

Mauritius, Morocco, Mozambique, Namibia, Niger, Nigeria,

Sénégal, South Africa, Sudan, Tanzania, Togo, Tunisia,

Uganda, Zambia, and Zimbabwe.

The African states which the ASEA members represent belong

to the following regional economic groupings within Africa

alone –

• Economic and Monetary Community of Central Africa

(CEMAC)

• Intergovernmental Authority on Development (IGAD)

• Southern African Development Community (SADC)/

Southern African Customs Union (SACU)

• West African Economic and Monetary Union (UEMOA)

• Community of Sahel-Saharan States (CEN-SAD)

• East African Community (EAC)


Bri

ef o

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SEA • Economic Community of Central African States

(ECCAS)

• Economic Community of West African States

(ECOWAS)

• Middle East Free Trade Area (MEFTA);

7. Conferences

The Nigerian Stock Exchange (NSE) hosted the thirteenth

(13th) Annual Conference of the African Securities

Exchanges Association (ASEA) which took place at the

Transcorp, Hilton in Abuja, Nigeria from 2 – 4 December

2009. The theme of the conference was “GLOBAL CRISIS:

Opportunities for African Capital Markets”.

Participants were welcomed to the conference by the

Minister of State for Finance, Planning and Economic

Development (General Duties), of the Republic of

Uganda, Hon. Fred Jachan Omach. The President of the

Republic of Uganda, His Excellency President Yoweri

Kaguta Museveni officially opened the Conference. The

President stressed the need for stock exchanges to be at

the forefront of providing avenues for mobilizing savings

and investments from which African governments can

benefit by raising funds through issuance of bonds to

fund infrastructure.

On September 17 2010, ASEA partnered with Africa

Investor (Ai) for the 2010 Ai Index Series Roundtable and

Awards, that were held at the premises of NYSE Euronext

in New York. The Ghana Stock Exchange scoped the

accolade for the most innovative African stock exchange

in 2010. The Mauritius Financial Services Commission

was awarded the best African market regulator in the

year.

8. Upcoming Conferences

The fourteenth (14th) ASEA AGM and Conference will

be hosted by the Lusaka Stock Exchange in Zambia. The

theme of the conference is “Integration of African Markets

through technology”.

The caption for the photograph should read, Hebatallah El Serafi: Head Research & Markets Development: Egyptian Exchange collects the award for Juhayna Food Industries Egypt, which won in the category for Best African IPO.

23

Brief o

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SEA

9. Which are the governmental bodies at the national or international level that the association interacts with, if any?

Partnerships and Alliances

1. Cooperate with other regional bodies such as the New

Partnership for Africa’s Development (NEPAD), and

the United Nations Economic Commission for Africa

(UNECA) to promote the role of the Association in capital

mobilization and economic development strategies by:

a. Issuing joint publications or papers;

b. Organizing joint events discussing issues on the

African investment front;

c. Displaying our publications at their events;

d. Having hyper links on their websites to the ASEA

website

2. Ensure presence in the Regional bodies such as CEMAC,

COMESA, EAC, ECOWAS, MEFTA, SADC and UEMOA.

3. Cooperate with other significant associations in the

exchange industry, such as World Federation of Exchanges

(WFE), International Organization of Securities

Commissions (IOSCO), the Federation of Euro-Asia

Stock Exchanges (FEAS), the South Asian Federation of

Exchanges (SAFES), exchange associations in the Greater

Arab Free Trade Area (GAFTA) and the Gulf Cooperation

Council (GCC) in the following areas:

a. Attend their conferences and meetings;

b. Apply for affiliate membership;

c. Display our publications at their events;

d. Having hyper links on their websites to the ASEA

website.

Branding and Promotional Events

1. Create a distinct corporate brand and identity for the

ASEA to be available on relevant publications and for

sponsorships of relevant events;

2. Record a professionally, done promotional video

providing a brief about ASEA and its member exchanges

which serves as a promotional tool for ASEA to be played

at all our conferences and road shows;

3. Conduct an annual road show to promote ASEA as

well as the individual members’ capital markets mainly

covering;

4. Intensify the cooperation with African Investor and other

similar organizations through the following:

a. Preparation of periodical articles to be published in

their magazine and newswire;


Bri

ef o

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SEA b. Aligning their events to promote the Association

either through an attached or separate event or a road

show to leverage on the attendees at their events at

more affordable costs to the Association;

c. Displaying our publications at their events.

Information Services

1. Continue to upgrade and update the ASEA website;

2. Provision of ASEA statistics to reputable global data

vendors such as Bloomberg, Reuters, and Thompson

Watch, amongst others.

Publications

1. Print a brochure about ASEA (other than the annual

yearbook) that can be distributed in events or sent to key

people in the field to increase awareness of ASEA;

2. Continue to issue the ASEA yearbook with more

informative data, which conforms to global international

standards and facilitates the investment decision making

process of the regional and global investor.

Membership Drives

1. Approach nascent and existing African Exchanges to offer

them our technical assistance and membership.

2. To encourage co-operation among the members in order

to promote the development.

ASEA Member Countries Main Economic

Indicators


South Africa

Indicators 2007 2008 2009

Population (million) 49.3

Real GDP (USD) (millions) at market exchange rates 211,240.00

Inflation rate (%) 7.1

Net Foreign Direct Investment (USD) (Millions) 4130.00

Unemployment rate (%) 24.3

Interest Rate (T-Bills) 8.0

Exchange rate (local currency versus US$) 8.4

Cape Verde


Population (million) 0.49 0.50 0.51

Real GDP (USD) (millions) at market exchange rates 1,513.00 1,747.00 1,768.00

Inflation rate (%) 8.60 6.10 4.00

Net Foreign Direct Investment (USD) (Millions) 15,309.78 15,934.07 9,492.38

Unemployment rate (%) 21.00 17.80 13.10

Interest Rate (T-Bills) 3.63 3.63 3.63

Exchange rate (local currency versus US$) 75.32 74.84 76.01

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Botswana




Inflation rate (%) 7.80 12.10 6.40

Net Foreign Direct Investment (USD) (Millions) -76.39 -137.36 Not Available

Unemployment rate (%)

Interest Rate (T-Bills)


Morocco


Population (million)

Real GDP (USD) (millions) at market exchange rates

Inflation rate (%)

Net Foreign Direct Investment (USD) (Millions)


Interest Rate (T-Bills)



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Tunisia


Population (million) 10.255 10.329


Inflation rate (%) 3.20 5.00 3.70

Net Foreign Direct Investment (USD) (Millions) 2070.80 3398.70 2278.70




Tanzania


Population (million) 40,683


Inflation rate (%) 6.90 12.50 12.50

Net Foreign Direct Investment (USD) (Millions)


Interest Rate (T-Bills) 11.4 10.99 6.14%

Exchange rate (local currency versus US$) 1,233.00 1,354.00 1,320.00

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Cameroun


Population (million) 16 18.5 19.1

Real GDP (USD) (millions) at market exchange rates 4.00 3.70 2.00

Inflation rate (%) 1.10 5.30 3.00

Net Foreign Direct Investment (USD) (Millions) N/A N/A N/A

Unemployment rate (%) N/A N/A N/A

Interest Rate (T-Bills) N/A N/A N/A

Exchange rate (local currency versus US$) 500

Egypt

Indicators 2006/2007 2007/2008 2008/2009


Real GDP (USD) (billion) at market exchange rates 135.06 162.41 189.34

Inflation rate (Urban) (%) 8.60 20.20 9.90



Interest Rate (91 Days T-Bills) % 6.781 9.675 10.156



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Ghana



Real GDP (USD) (millions) at market exchange rates 13.4b 14.00bn 15.13bn

Inflation rate (%) 10.20 18.10 16.00

Net Foreign Direct Investment (USD) (Millions) N/A N/A N/A

Unemployment rate (%) 20 11 11

Interest Rate (T-Bills) 10 17.4 22.53


Libya



Real GDP (USD) (millions) at market exchange rates 86,288.90

Inflation rate (%) 2.40




Exchange rate (local currency versus US$)

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Inflation rate (%) 8.90 16.60 9.90

Net Foreign Direct Investment (USD) (Millions) 1,323.90 938.60 699.15



Exchange rate (local currency versus US$) 3910 4985 4730

Mozambique


Population (million) 16,10 21,67 21,80

Real GDP (USD) (millions) at market exchange rates 17.790 18.900 9.899

Inflation rate (%) 12,10 11,82 2,25

Net Foreign Direct Investment (USD) (Millions) 427,50 587,10 889,90

Unemployment rate (%) NA NA NA

Interest Rate (T-Bills) 0,16 0,14 11,79

Exchange rate (local currency versus US$) 25,56 24,17 26,71


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Real GDP (USD) (millions) at market exchange rates 27,584 34,514 29,988

Inflation rate (%) 9.70 26.00 9.24





Mauritius




Inflation rate (%) 8.80 9.70 2.50





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Uganda


Population (million) 30,637,544 31,656,865 32,669,885


Inflation rate (%) 6.10 12.00 13.00




Exchange rate (local currency versus US$) 1698 1940 1907

Bourse Régionale des Valeurs Mobilières


Population (million) NA NA 80.34

Real GDP (USD) (millions) at market exchange rates NA NA 41,020

Inflation rate (%) NA NA 1.30

Net Foreign Direct Investment (USD) (Millions) NA NA

Unemployment rate (%) NA NA NA

Interest Rate (T-Bills) NA NA

Exchange rate (local currency versus US$) NA NA 450


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Namibia




Per Capita 3,871 2,993 3,797

Inflation rate (%) 6.60 10.30 6.70

Net Foreign Direct Investment (USD) (Millions) 761 639 594

Unemployment rate (%) 48 31.1 50%



Sudan


Population (million) 37,200,000 39,200,000 39,200,000

Real GDP (USD) (millions) at market exchange rates 56,166,256,157.63 58,599,495,412.80 66,132,633,928.60

Inflation rate (%) 8.10 14..3 11.20

Net Foreign Direct Investment (USD) (Millions) 3,034.12 2,600.50 2,436.34




Member Exchange

Profiles


Profile

Website www.jse.co.za

Market Regulator Financial Services Board

Address JSE Ltd, One Exchange Square, Gwen Lane, Sandown, South Africa

Trading Session hours (local time) 09:00 - 17:00

Time Zone GMT + 2.00

Contact Person for ASEA Geoff Rothschild

Telephone 27115207114

Fax 27115208998

E-mail [email protected]

Name of Local Currency South African Rand ( ZAR )

Tax Rates (dividends, interest, capital gain)No tax imposed on dividends for Non Residents, Interest= 12%. Roy-alties , Visiting Entertainers =15%

Commodities Exchange Commodities Derivatives Exchange

JSE Limited

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JSE Limited

JSE Limited

Section One : Trading StatisticsCurrency: USD

Table 2: Trading equity Statistics


Total value traded 377,868,627,473.65

Total volume traded 82,588,166,139.00

Total number of transactions 20,950,750.00

Number of listed companies 410

Number of traded companies 390

Market Capitalization (billions) end of year 801.27

Market Capitalization as % of GDP 29.30%

Turnover Ratio (%) * 47.9

* Turnover Ratio (%)= value traded of listed securities/market capitalization

Table 3: Investors Type

Foreigners vs. Local Investors

Note:- Figures based on foreign trading statistics.

Type of Investors % of the Total Value Traded

2007 2008 2009

Foreign Investors 17.4

Local Investors 82.6

Total % 100%


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Insitutions vs.Individuals

Institutions N/A

Individuals N/A

Total % N/A

Table 4: Sectors Traded

Sectors traded on the Stock Exchange Number of companies included in each sector

2007 2008 2009

Airlines 2

Aluminium 1

Apparel Retailers 5

Asset Managers 4

Auto Parts 2

Banks 8

Brewers 2

Broadcasting & Entertainment 3

Broadline Retailers 5

Building Materials & Fixtures 19

Business Support Services 12

Business Training & Employment Agencies 4

Clothing & Accessories 3

Coal 4

Commercial Vehicles & Trucks 2

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JSE Limited

JSE Limited


2007 2008 2009

Computer Hardware 2

Computer Services 17

Consumer Electronics 2

Consumer Finance 3

Containers & Packaging 4

Conventional Electricity 2

Corporate Debt 1

Diamonds & Gemstones 8

Distillers & Vintners 2

Diversified Industrials 5

Diversified REITs 1

Drug Retailers 1

Electrical Components & Equipment 8

Electronic Equipment 6

Equity Investment Instruments 12

Farming & Fishing 9

Financial Administration 1

Fixed Line Telecommunications 2

Food Products 9

Food Retailers & Wholesalers 4

Forestry 1

Furnishings 1


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2007 2008 2009

Gambling 3

General Mining 21

Gold Mining 15

Health Care Providers 2

Heavy Construction 15

Home Construction 1

Home Improvement Retailers 6

Hotels 6

Industrial & Office REITs 1

Industrial Machinery 6

Industrial Suppliers 7

Insurance Brokers 1

Integrated Oil & Gas 3

Internet 1

Investment Services 15

Iron & Steel 6

Life Insurance 6

Marine Transportation 2

Medical Supplies 1

Mobile Telecommunications 5

Mortgage Finance 1

Nonferrous Metals 5

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JSE Limited


2007 2008 2009

Other Securities 1

Paper 3

Personal Products 2

Pharmaceuticals 4

Platinum & Precious Metals 10

Preference Shares 8

Property & Casualty Insurance 4

Publishing 5

Real Estate Holding & Development 24

Restaurants & Bars 3

Retail REITs 5

Software 5

Specialised Consumer Services 2

Specialty Chemicals 7

Specialty Finance 7

Specialty Retailers 1

Telecommunications Equipment 4

Tobacco 1

Transportation Services 5

Travel & Tourism 1

Trucking 1

Waste & Disposal Services 1


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Table 5: 5 Most Active Sectors in 2009

# Sectors Value Traded

1 Mining 964,455,564,197

2 Banks 289,538,970,141

3 Mobile Telecommunications 233,369,433,615

4 Oil & Gas Producers 150,787,449,352

5 General Retailers 106,980,286,969

Section Two: Bonds Statistics

Table 6: Bonds Statistics

Bonds 2007 2008 2009

Total Value traded 1,813,781,495,431

Value traded on governmental bonds 1,655,390,886,101

Value traded on corporate bonds 158,390,609,330

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JSE Limited

JSE Limited

Section Three : Trading System

Please specify the Name of the Trading System used by the Stock Exchange - JSE TradElect & Nutron

Is this system locally developed - No

Or bought? - Yes

If bought, who is the Vendor? - LSE for TradElect, STT for Nutron

Year of implementing the system - 2007 Equities, - 2009 Derivatives”

Section Four : Clearing and Settlement

Where do Clearing & Settlement take place? - JSE - For cash equities and bonds

- SAFCOM (a wholly owned subsidiary of the JSE)

- For Derivatives

If Separate Company please mention its name -

Is this system locally developed - For cash markets locally developed or bought? - For Derivatives - bought

If bought, who is the Vendor? - STT

Year of implementing the system: - Equities- 1988,

- Derivatives,2009 and 2010


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Clearing and Settlement is conducted in:

T+ 2 - T + 3 for cash bonds

T+ 3 - T+ 5 for cash equities

Others - N/A

Section Five : Products traded on the Stock Exchange

Types of markets in your Stock Exchange

Equity Market YES

Derivative Market YES

Bond Market YES

Table 7: Products

Description of the Product

Equity Index Future Futures and Options on listed FTSE/JSE Indices

Single Stock futures and Options Futures and Options on listed FTSE/JSE Shares

IDX Single Stock Futures Futures on Interantionally Listed Shares

IDX Dividend Futures Dividend Futureas on listed IDX Single Stock Futures

Krugerrand Futures and Options Futures and Options on the JSE Listed Krugerrand

Spot Bonds Spot and Forward Bonds

Bond Index Futures and Options Futures and Options on Bond Indices

Repos Repo on Bonds

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JSE Limited

JSE Limited

Carries Carries on Bonds

Currency Futures and Options Futures and Options on currencies

Dividend Futures on Single Stock Futures Dividend Futures on listed Single Stock Futures

Can do Futures and Options Customised Futures and Options on any JSE listed Product

Notes Futures on Notional Swaps

Swaps Bond lookalike swaps

FRA’s Futures on FRA’s

IDX Single Stock Futures

Rods Overnight Interest Rate Swaps

ETF’s Exchange Traded Funds

Agricultural Commodities White And Yellow Maize,wheat, sunflower seeds and soyabeans

Foreign Referenced Commodidites Chigaco corn contract

Section Six : Trading Mechanism

Margin Trading N/A

Intraday Trading Yes

Online Trading Electronic order book


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Section Seven : Indices

Table 8: Indices

Index Name Index Type (Price Index, Sector Index,..etc)

FTSE/JSE All Share Price

FTSE/JSE Top 40 Price

Closing 2008 Closing 2009 % change

FTSE/JSE All Share 21,509.20 27,666.45 28.63%

FTSE/JSE Top 40 19,444.40 24,996.97 28.56%

47

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JSE Limited

Section Eight : IPOs

2008

Company Date of IPO Value of IPO ($ million)

None N/A N/A

Note:- Based on newly issued & resale shares for Private & Preferrential placements.

2009


New Europe Property Investments Plc 4/17/2009 41

Efficient Financial Holdings Ltd 4/20/2009 5

Vodacom Group Ltd 5/18/2009 9,211

MAS Plc 8/31/2009 13

Paladin Capital Ltd 9/1/2009 83

Fotress Income Fund Ltd “A” 10/22/2009 189

Fotress Income Fund Ltd “B” 10/22/2009 21

2008

Company Date of issue Face Value of issue ($ million)

2009


Refer to the sheet named Newly Issued Bonds


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Section Nine : 2008 Rankings of Top 5 Trading Participants

Ranking Stockbrokerage Units Purchases Sales Total

$ $ $

1 Deutsche Securities (Pty) Ltd 35,808,165,645 36,286,870,233 72,095,035,878

2 Credit Suisse Standard Securities (Pty) Ltd 34,194,946,793 32,298,153,825 66,493,100,618

3 JP Morgan Equities Ltd 26,197,505,519 26,538,579,844 52,736,085,363

4 Citigroup Global Markets (Pty) Ltd 25,607,269,774 24,841,853,468 50,449,123,243

5 UBS South Africa (Pty) Ltd 23,763,015,047 23,690,820,408 47,453,835,456

2009 Rankings of Top 5 Trading Participants

Note:-Based on the top 5 broking companies

Ranking Stock brokerage Units Purchases Sales Total

$ $ $

1 Merrill Lynch South Africa (Pty) Ltd 8,494,976,750 5,865,473,431 14,360,450,180.90

2 Deutsche Securities (Pty) Ltd 8,403,702,882 6,328,463,731 14,732,166,613.12

3 Credit Suisse Standard Securities (Pty) Ltd 7,727,572,793 5,938,820,797 13,666,393,589.56

4 Citigroup Global Markets (Pty) Ltd 6,161,358,112 5,645,962,250 11,807,320,361.92

5 Investec Securities Ltd 5,081,589,171 3,480,001,865 8,561,591,035.61

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JSE Limited

JSE Limited

Johannesburg Stock Exchange

some of the achievements in 2009

January 2009 Launch of cash-settled CME Group-referenced corn contract

February 2009 Launch of Africa Board and listing of Trustco Holdings (Namibian Company) on the board

July 2009 Acquisition of the Bond Exchange of South Africa and successful integration

August 2009 Launch of FTSE/JSE Capped Rafi All Share index

October 2009 Launch of cash-settled CME Group-referenced platinum, gold and oil contracts

November 2009 Launch of Jibar futures contract (a product similar to the Libor )

December 2009 Zero failed trades in the equities market during the course of 2009. 9

Ongoing plans of the Johannesburg Stock Exchange

The JSE continues to focus on building client relationships by enhancing the value of the various service offerings while keeping

costs under control, ensuring continuous improvement and building a sustainable business model with both depth and breadth.

Through all of this strength of regulation and quality of service are non-negotiable.

Specific initiatives for 2010 include the following:

• Continued focus on educating retail investors about stock market investment in order to increase the pool of retail

investors;

• Investigation of new products and services such as Remote Membership, FIX Enablement and FIX Gateways;

• Further upgrades to technology and systems;

• Continuation of the T+3 initiative (with the aim of moving the SA equities market to a T+3 settlement cycle);


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• Introduction of futures contracts on African equity underlyings;

• Continue bringing new products to the market (i.e. international-referenced commodity offerings - corn, platinum, gold

and corn contracts - launched in January and October 2009);

• Continued focus on bringing new companies to market as well as enhancing the perceived value received by currently

listed companies;

• Examine new ways of delivering data to international/remote clients to increase ease of data access

• Engage with market participants to encourage clearing of OTC positions through the JSE’s central counterparty

clearinghouse, SAFCOM.

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Bolsa de Valores de Cabo Verde Website www.bvc.cv

Market Regulator General Auditor of Securities Market - AGMVM (Cape Verde)

Address 16th Floor, Lg Europe, Achada Santo António, P O Box 115/A Praia CAPE VERDE

Trading Session hours (local time) 8:30 am - 3:00 pm

Time Zone Greenwich Mean Time - 1 hours

Contact Person for ASEA Manuel Lima

Telephone +238 2603030

Fax +238 2603038


Name of Local Currency ECV - Capeverdian Escudos

Tax Rates (dividends, interest, capital gain) dividends 0% (domestic investors and foreign investors); interest-Corpo-rate Bonds 5%; interest-Treasury Bonds 5% capital gains 15%

Commodities Exchange N/A


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Section One : Trading Statistics

Table 2: Trading Equity Statistics Currency: USD


Total value traded (USD) 19,787,709.70 23,083,805.82 4,520,999.01

Total volume traded 269,040.00 259,948.00 53,382.00

Total number of transactions 224.00 309.00 310

Number of listed companies 4 4 4

Number of traded companies 4 4 4

Market Capitalization (billions) end of year 0.12 0.13 0.13

Market Capitalization as % of GDP 8.15% 7.63% 7.54%

Turnover Ratio (%) * 0.161 0.173 0.034





2007 2008 2009

Foreign Investors N/A N/A N/A

Local Investors N/A N/A N/A

Total % N/A N/A N/A

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Type of Investor of the Total Value Traded

2007 2008 2009

Institutions N/A N/A N/A

Individuals N/A N/A N/A

Total % N/A N/A N/A



2007 2008 2009

Main Investment Market Segment (MIMS)

Fuel and Oil 1 1 1

Comercial Banks 2 2 2

Industrial and Allied 1 1 1

Agricultural

Alternative Investment Market Segment

Fixed Income Market Segment

Preference shares

Government of Cape Verde Treasury Bonds 27 20 12

Corporate Bonds 7 8 13


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# Sectors

1 Comercial Banks

2 Fuel and Oil

3 Corporate Bonds

4 Industrial and Allied

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Bonds 2007 2008 2009

Total Value traded

Value traded on governmental bonds

Value traded on corporate bonds 4,703,071.37 851,564.11 16,477,848.44

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Please specify the Name of the Trading System used by the Stock Exchange - Sifox Deal

Is this system locally developed -

or bought? - Yes

If bought, who is the Vendor? - Finantech - Portugal

Year of implementing the system: - 2005


Where do Clearing & Settlement take place?

The Stock Exchange - Yes

Separate Company -



or bought? - Yes

If bought, who is the Vendor? - Finantech - Portugal


Clearing and Settlement is conducted in: T+ 2 - T+ 3 - Others - T+0


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Equity Market Yes

Cash Market

Derivative Market

Bond Market Yes

Table 7: Products

Product (Stocks, Bonds, Funds, ETF’s, Derivatives ..etc) Description of the Product

Shares Common shares

Bonds Government and Corporate bonds


Margin Trading


Online Trading

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Table 8: Indeces


N/A N/A

N/A N/A


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Section Eight : IPOs and Debt Securities

2008


None 0.00

2009


Banco Comercial do Atlantico-Bank (capital Rise) March 2009 4.27

Caixa Economica de Cabo verde-Bank (capital Rise) December 2009 13.73

18.01

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2008

Company Date of issue Face Value of Issue ($ million)

Banco Interatlantico, SA July 2009 6.68

6.68

2009


IFH - Imobiliária, Fundiária e Habitat, SA January 2009 5.53

SOGEI - Sociedade de Gestão de Investimentos, SA February 2009 19.73

Tecnicil Indústria, SA April 2009 1.97

Cabo Verde Fast ferry, SA July 2009 19.73

46.97


Ranking Equity Transactions Purchases Sales Total

$ $ $

1 Banco Comercial do Atlantico, SA 1,001,013 770,368 1,771,381

2 Caixa Económica de Cabo verde, SA 522,206 516,223 1,038,429

3 Banco Cabo Verdiano de Negocios, SA 392,337 514,782 907,118

4 Banco Interatlantico, SA 340,480 459,127 799,607

5 Banco Africano de Investimentos CV, SA 4,464 0 4,464


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Ranking Bond Transactions Purchases Sales Total

$ $ $

1 Banco Interatlantico, SA 2,016,689 2,019,320 4,036,009

2 Banco Africano de Investimentos CV, SA 1,595,294 1,929,685 3,524,979

3 Banco Comercial do Atlantico, SA 474,517 137,498 612,015

4 Caixa Económica de Cabo verde, SA 0 0 0

5 Banco Cabo Verdiano de Negocios, SA 0 0 0

Members’ Contacts are available on the BVC website www.bvc.cv

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Bolsa de Valores de Cabo Verde

Cape Verde Stock Exchange Background

Introduction

The Cape Verde Stock Exchange (BVC) is a relatively young institution. Created in 1998, it became fully functional in October

of 2005 with the goal to transform Cape Verde into an attractive and competitive financial platform. The BVC is a public capital

institution, with private rights established under Law nº 51/V/98. Its Administrative Board is composed of a President and two

additional non-executive Administrators. The technical body is composed of a General Coordinator and a six member staff.

Presently, the Cape Verde capital market is seeking to transform itself to include the most modern financial legislation in its

operation thus becoming more competitive at the international level. This transformation calls for a modern, dynamic and

efficient financial sector to the extent that the development of effective and efficient financial services should constitute, in

the long term, one of the foundations of the nation´s economy. Therefore, the Government will continue to attribute strategic

priority to the strengthening of its financial sector. A financial sector that is able to induce the growth of the economy. A financial

sector that is, in itself, an engine of growth.”

Financial Benefits

Given the strategic importance of the capital market to the Capeverdean economy, a seductive financial sector was created for

companies and investors interested in investing in the Stock Exchange. As investors, they are exempted from income tax, treasury

securities interest, capital gains and the redemption and sale of units and cash-flow of all of the investment funds, and the capital

gains received over one year of any security. Mortgage registration and operations of the exchange are exempt from stamp tax

and real estate transaction funds are exempt from single tax income on patrimony.

In addition, the interest on listed corporate bonds in the Stock Exchange is taxed 5%; the Capital gains received in less than a

year and deducted capital losses are taxed at 15%, if more than a year, tax is exempt; the listed companies at the stock exchange

have reduced single tax income (IUR) of 20% over 3 years; there are no restrictions to free capital circulation at the Exchange.

There also exists an agreement of double taxation between Portugal and Cape Verde. In the near future, we will have additional

agreements with Angola, Brazil, Italy, Macau and Spain.


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In a little less than four years of being fully operational, almost 22 operations have been completed resulting in more than

$295,697,822.25 (USD). In 2009, nearly 94% of the total credit granted to the national economy came from the BVC as a result

of various emissions. The BVC has been a valuable and necessary partner to the growth of the Capeverdean economy as well as

the country´s overall development.

Treasury Securities Reform

Treasury securities reform was carried out with the objective to guarantee adequate Government financing over the long run,

increasing the number of participants in the primary market as well as increasing the potential of saving mechanisms, including:

respective settlement in the secondary market, improving management emissions and creating mechanisms that would permit

the control and effective follow-up of the treasury securities before and after emission. This reform permits all investor direct

access to the primary treasury bond market, having positive implications on Market Capitalization and on the financial cost to

the State.

Quoted Companies and Market Capitalization

Currently, market capitalization is about $273,277,594.92 (USD) divided amongst four listed securities in the shares section,

thirteen in the corporate bonds segment and eight in the treasury bond segment. Market capitalization, rounds off to 20% of the

Gross Domestic Product (GDP), in accordance with the data from the Bank of Cape Verde.

The listed companies in the shares sector are: Sociedade Cabo-verdiana de Tabacos, a Caixa Económica de Cabo-Verde, o Banco

Comercial do Atlântico e a Enacol. Up until now, bonds have already been issued by the Government of Cape Verde, Electra,

Tecnicil Real Estate, ASA, Interatlantico Bank, IFH Real Estate, Sogei, and Cape Verde Fast Ferry.

Municipal Bonds

In 2010, municipal bonds were issued, constituting an important chapter to the success of the Capeverdean capital market.

Henceforth, Municipalities will be able to finance themselves through the capital market by issuing municipal bonds. In the

month of June of this year, bonds for the Municipality of Sal were issued in the amount of $2,531,719.04 (USD) with the

Municipality of Praia in the amount of 5,696,367.83 (USD).

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Negotiation and Settlement System

One of the BVC´s major factors in its notable evolution has to do with the technological platforms it uses. How does the Cape

Verde Stock Exchange work? Its functional structure is based on the Quote Driven and Order Driven Systems in concert with

what is occurring in the principle financial markets such as, Nasdaq in the USA and the Stock Automated Quotations System of

the London Stock Exchange. The BVC´s trading system utilizes modern platforms, such as, POS-Light, Sifox Deal and Sifox Back

Office, which are also used in the leading Stock.

Partners

Through the years, the BVC has strengthened its principle partners, such as, Euronext Lisbon with central settlement and

custodianship and; Interbolsa, which is an agency of Euronext Lisbon, with the Caixa de Crédito Agrícola and the Instituto

Superior de Economia e Gestão (ISEG) of the Univerdsidade Técnica de Lisboa. Is it important to note that Euronext Libon

is part of the leading management group for world Stock Exchanges that includes the stock exchanges in New York, Paris,

Amsterdam, Brussels, and the London derivative market-Liffe.

Conclusion

There are still many challenges to be addressed in order for the BVC to reach its potential. This includes the following:

Financial Education: Financial education is perhaps one of the greatest challenges to the capital market in Cape Verde,

as it is a challenge to most markets. It aims to promote a strong financial culture in Cape Verde by bridging the large deficit of

information and knowledge regarding Cape Verde´s new economic reality.

Training: In the case of product markets and those financial instruments least known by many investors, there is a need to

intensify information and training in order to reach into the most remote places and reach everyone who might be interested

in learning more information about the Cape Verde capital market. The BVC considers financial education is a prerequisite

condition to attract retail investors as well as, a way to boost the secondary market.


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Financial and technological innovations: New technologies facilitate the development of strategic alliances between markets in

different countries. They allow access to any International capitalization market, from virtually any location, while enabling the

emergence of alternative forms of trading, tending to lower information costs and transaction fees.

Investment : Investment in innovative solutions and diversification of financial instruments is an additional pillar on which

to structure the future of the BVC. This would include creating a “Second Market” in the “Market without quotations” and

“Preference Shares”. Investment Consultants and Market Makers are other important figures. In the upcoming years, the BVC

promise to look at the feasibility of creating a “second market” and “preference shares” in Cape Verde.

Integration of the stock exchange in international markets: The challenge to internationalize the market implies

a focus on norms and setting standards that together represent prerequisite conditions that starting with: (1) an access platform

for the foreign investor, including those in the Cape Verdean Diaspora enabling access of BVC products and services through the

ATM, Internet and Homebanking, in any part of the world; (2) the implementation of a quality system (ISO 9001) accredited by

independent and external entities aiming towards international recognition; (3) International publicity for the Cape Verde Stock

Exchange on major channels aiming towards increased notoriety and in doing so, attracting investors from diverse corners of

the world; (4) Staff training in financial systems to reinforce staff capacity with the purpose of keeping in step with international

dynamics.

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Profile

Website www.bse.co.bw

Market Regulator Non-Banking Financial Institutions Regulatory Authority (NBFIRA)

AddressOffice Block 6, Plot 64511, Fairgrounds, Private Bag 00417, Gaborone, Botswana

Trading Session hours (local time) 0930hrs- 1030hrs

Time Zone GMT +2

Contact Person for ASEA Dudu Garekwe

Telephone (+267) 3180201

Fax (+267) 3180175


Name of Local Currency Pula(BWP)

Tax Rates (dividends, interest, capital gain) 15% withholding tax on dividend, 10% on Interest,


Botswana Stock Exchange


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Table 2: Trading Equity Statistics


Total value traded (1) 137,289,240.00 155,103,661.91 114,500,403.03

Total volume traded 124,600,000 193,308,736 167,586,241

Total number of transactions 6,378.00 5,272.00

Number of listed companies (2) 31 31 31

Number of traded companies



Turnover Ratio (%) * 2.9 3.9 2.7





2007 2008 2009

Foreign Investors Not available Not available Not available

Local Investors Not available Not available Not available

Total %

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Insitutions vs. Individuals

Type of Investor of the Total Value Traded

2007 2008 2009

Institutions Not available Not available Not available

Individuals Not available Not available Not available

Total %



2007 2008 2009

Domestic Board

Banking 4 4 4

Financial Services 3 3 3

Retail & wholesale 5 5 5

Property 3 3 3

Funeral Services 0 1 1

Security Services 1 1 1

Information Tecchnology 1 1 1

Energy 1 1 1

Tourism 1 1 1

Health 1

Foreign board

Financial Services 2 3 3

Mining & Minerals 8 8 8

Retail & wholesale 1



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# Sectors

1 Banking

2 Financial Services & Insurance

3 Retail & Wholesaling

4 Mining & Materials

5 Property & Property Trust



Bonds 2007 2008 2009

Total Value traded

Value traded on governmental bonds 15,499,621.20 68,960,500.00 77,056,952.88

Value traded on corporate bonds 17,264,385.00 2,771,188.00 18,854,422.00

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Please specify the Name of the Trading System used by the Stock Exchange - Open-Outcry

Is this system locally developed - Manual

or bought? -

If bought, who is the Vendor? -





Separate Company - Central Securities Depository Botswana

If Separate Company please mention its name - Central Securities Depository Botswana


or bought? - Yes

If bought, who is the Vendor? - Millenium IT(Sri Lanka)


Clearing and Settlement is conducted in: T+ 2 - N/A T+ 3 - N/A

Others - T+4


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Equity Market Yes

Cash Market N/A

Derivative Market N/A

Bond Market Yes

Table 7: Products

Product (Stocks,Bonds, Funds,ETF’s,Derivatives ..etc) Description of the Product

Stocks Ordinary shares

Bonds Government and corporate bonds

ETF Gold Bullion Exchange Traded Fund


Margin Trading


Online Trading

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Table 8: Indices

Index Name Index Type (Price Index, Sector Index)

Domestic company Index Price index. The index returns are based on capital gains/losses all domestic companies listed on the BSE, valued by full market capitalisation.

Foreign company index Price index. The index returns are based on capital gains/losses all foreign companies listed on the BSE, valued by full market capitalisation.


Domestic company Index 7035.5 7,241.89 2.93

Foreign company index 1191.98 1,418.26 18.98


2008


Funeral Services Group Limited 1-Sep-08 5.4396

2009


None 0


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2008


Botswana Government BW 004 12-Mar-08 92.7

Botswana Government BW 005 12-Mar-08 100

Diamonex 28-Jan-08 8.04

Stanbic Bank Botswana Limited 046 11-Jun-08 7.565



Stanbic Bank Botswana Limited 049 13-Aug-08 7.555

Stanbic Bank Botswana Limited 052 17-Dec-08 6.41

African Copper 001 2-Apr-08 22.845

Botswana Building Society -14years 3-Dec-08 18.585

Botswana Vaccine Institute 001 7-May-08 10.99

Water Utilities Corporation 001 26-Jun-08 29.6985

Water Utilities Corporation 002 26-Jun-08 31.2215

Total 373.1035

2009


Botswana Government BW 006-3years 9-Sep-09 45

45

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Stockbrokerage Units $ $ $

1 Stockbrokers Botswana 43,912,548.72 41,253,549.25 85,166,097.97

2 Capital Securitues 41,555,755.81 41,707,106.18 83,262,862.00

3 Motswedi Securities 28,521,413.45 30,204,965.95 58,726,379.40

4 African Alliance Botswana 510,673.55 1,334,770.14 1,845,443.69

5

Members’ Contacts are available on the BSE website

www.bse.co.bw


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Exchange Background

The Botswana Stock Exchange (BSE) is Botswana’s national stock exchange given the responsibility to operate and regulate

equity and fixed interest security market. Formally established in 1989, the BSE trace its humble beginnings to when it was

known as Botswana Share Market (BSM). At that time there was no formal stock exchange in Botswana and the BSM traded as

an informal market. There were only 5 listed entities with a single broking firm. In 1995 the BSE was established. To date the BSE

boosts 32 listed entities, (comprising 21 domestic and 11 foreign companies), 4 broking firms, and a full-time headcount of 21.

The main Law that governs all activities between the Exchange and its members, the proceedings of its Main Committee and

its composition, the relationship between the Minister and the Exchange together with the relations between the Registrar, is

the Botswana Stock Exchange Act No: 11 of 1994. The BSE is regulated by the Non-Banking Financial Institutions Regulatory

Authority (NBFIRA).

The members have promulgated Rules (Member Rules) which provide the requirements to be fulfilled for the securities listed

and traded on the exchange. Member Rules provide as the main objective thereof, to operate a Stock Exchange in Botswana with

due regards to the public interest to maintain fair and efficient dealing in securities for the protection of investors and regulate

the affairs of members.

In addition, the exchange has a set of listing requirements which provide the pre-listing requirements and post listing requirements

to be observed by issuers of listed securities. The emphasis is to make sure issuers disclose as much information to the public and

investors so that the latter can make informed investment decisions.

Latest Achievements

The greatest challenge in world financial markets in 2009 was that the aftermath of the financial crisis was still visible, especially

the decline in the performance of stock markets indices during the first half of the year. Except for a handful, most of the stock

exchanges experienced a decline in market capitalisation, turnover and volume of shares traded during the year 2009.

Botswana Stock Exchange

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A review of the performance of the Botswana Stock Exchange (BSE) indices, proves the year 2009 to have been another challenging

one for the Exchange. The BSE’s Domestic Company Index closed the year at 7241.9 points compared to 7035.5 points as at end

2008 appreciating by 2.93% in comparison to an appreciation of 35.9% and a decline of 16.5% in 2007 and 2008 respectively.

As can be expected primary market activity was low in 2009 as a result of the decline in the market. There were no new de/listings

in the equity market. The number of listed companies on the Domestic and Foreign Boards remained unchanged at 31 entities.

The other primary market activities in respect of equities are 5 issues of share incentive schemes and 5 private placements valued

at P175.5m and P3.7 Billion respectively. There was 1 rights issue worth P2.25m and 4 acquisitions valued at P35.4m. Funds

raised through rights issues fell drastically from P85m in 2007 and P64.9m in 2008 to P2.25m in 2009. This was mainly due to

suppressed equity prices in the market.

There were few activities in the debt market in 2009. During Quarter 1, Botswana Building Society listed its 3rd tranche of

BBS005 Fixed Rate Notes raising P150m from the P500m note programme approved by the BSE in 2004. The fixed notes attract

an interest rate of 11.20% per annum and mature on 3rd December 2023.

In Quarter 3, the Botswana government listed a P300m bond (BW 006) maturing on 9th March 2012 with a fixed interest rate

of 7.50%. The bond was listed under the P5 Billion programme memorandum of May 2008. The government also increased the

nominal values of BW003 and BW005 by P100m in respect of each bond. As at end of 2009, there were 32 debt securities listed

on the BSE.

The BSE expects an improvement in 2010 in terms of new listings considering the interest shown by companies to list on the BSE.

This would include the listing of Exchange Traded Funds (ETFs).

Dematerialisation of shares on the CSD has been progressing well with 34% domestic company shares being dematerialised as

at 31 December 2009.


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Future Outlook

The BSE will continue to concentrate on its core business and what it has been doing over the past years. The BSE will pay great

attention to the implementation of a strategy that creates a strong foundation for development and growth. Thus, emphasis

has been placed on infrastructure, regulation, market, product and HR development, governance and financial stability as the

cornerstones of the BSE strategy.

The BSE aims to become a financial supermarket, meaning it aims to provide the right king of products to suit investor and issuer

so that it meets growing customer demands and challenges of the globilisation of financial markets. This can be done through

product innovation and diversification. Current products include equities, corporate bonds, Government bonds, and commercial

paper while products being developed are Exchange Traded Products, securitised products and derivatives.

The BSE outlook in the short term:

1. Listing of ETFs

2. Exchange Traded Funds Investor Scheme.

3. In 2009 the BSE commenced the computation of a series of indices, using a free float methodology.

4. Bond market development.

Initiatives Undertaken

1. Regulatory Review Process

The process of reviewing the BSE Act by the MFDP is still in progress since 2006. The regulatory review process entailed the

new Securities Bill, listing requirements and member rules. The BSE has forwarded its final comments to MFDP on the proposed

Securities Bill and the new listing rules of the BSE. The BSE is eagerly awaiting the enactment of the securities act legislation to

assist the BSE to proceed with its development plans identified in its strategy.

The Member Rules which initially were to be drafted by Edward Nathan and Sonnenbergs of South Africa will now be drafted by

the BSE internally.

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2. Expanding Investor Base

The market development initiatives of expanding the investor base by educating Batswana about the benefits and risks of investing

in listed securities continued in 2009. This is in line with the BSE’s strategy of increasing the retail investor participation in the

stock market. Taking into account the success of its Roadshows in 2008, the BSE marketing team expanded the investor base by

making presentations and participating in exhibitions at various places around the country.


Profile

Website www.casablanca-bourse.com

Market Regulator CDVM - Conseil déontologique des valeurs mobilière

Address Angle Avenue des Forces Armées Royal et Rue Arrachid Mohamed - Casablanca - MAROC

Trading Session hours (local time) 9:00 am at 15:35 pm

Time Zone GMT -Greenwich Mean Time-

Contact Person for ASEA KARIM EL ALAOUI Youssef

Telephone +212 522 45 26 26

Fax +212 522 45 26 25


Name of Local Currency MAD - Moroccan DIRHAM

Tax Rates (dividends, interest, capital gain)

Commodities Exchange

Bourse de Casablanca

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Total value traded (1) (millions) 20,836.18 12,478.50 7,045.94


Total number of transactions 468,864 469,986 285,252





Turnover Ratio (%) * 27.41% 19.00% 10.88%

* Turnover Ratio (%)= value traded of listed securities/market capitalization(1) = one way counted-Central Market and Block Market(2) = end of year


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2007 2008 2009

Shares Market Segment 73 77 76

Banks 6 6 6

Beverages 3 3 3

Chemicals 4 4 4

Construction & Building Materials 6 6 6

Distributors 7 8 8

Electrical & Electronic Equipment 1 1 1

Engineering & Equipment Industrial Goods - 1 1

Food producers & Processors 7 7 7

Forestry & Paper 1 1 1

Holding Companies 3 4 4

Insurance 4 4 3

Investment Companies & Other Finance 8 8 8

Leisures and Hotels 1 1 1

Mining 3 4 4

Oil & Gas 2 2 2

Pharmaceutical Industry 2 2 2

Real Estate 3 4 4

Software & Computer Services 7 7 7

Telecommunications 1 1 1

Transport 2 2 2

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2007 2008 2009

Utilities 1 1 1

Wrapping 1

Bonds Market Segment 54 44 41

Bonds convertible into equity 0 0 1

Debenture loan with fixed rate 50 38 34

Debenture loan with revisable rate 4 6 6


# Sectors

1 Banks

2 Real Estate

3 Telecommunications

4 Holding Companies

5 Food producers & Processors



Bonds 2007 2008 2009

Total Value traded (millions) 304.52 964.88 1,093.07

Value traded on governmental bonds - - -

Value traded on corporate bonds (millions) 304.52 964.88 1,093.07


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Please specify the Name of the Trading System used by the Stock Exchange - NSC V900


or bought? -






Separate Company -


Is this system locally developed - Yes

or bought? -

If bought, who is the Vendor? - l


Clearing and Settlement is conducted in: T+ 2 - T+ 3 - Yes

Others -

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Equity Market Yes

Cash Market Yes

Derivative Market

Bond Market Yes

Table 7: Products


Equity

Bonds


Margin Trading


Online Trading Yes


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Table 8: Indices


MASI Float Price Index - a broad-based index comprising all shares

MADEX Float Price Index - a compact index comprising the shares coted in continu


MASI Float 10,984.29 10,443.81 -4.92%

MADEX Float 9,061.02 8,464.47 -6.58%

Section Nine : IPOs and Debt Securities

2008


DELATTRE LEVIVIER MAROC 4/29/2008 11.25

DELTA HOLDING S.A 5/15/2008 115.88

MINIERE TOUISSIT 6/4/2008 37.09

LABEL VIE 7/2/2008 64.72

ALLIANCES 7/17/2008 246.57

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2009


2008


BMCE BANK 2/26/2008 35.19

BMCE BANK 10/15/2008 12.35

BMCE BANK 10/15/2008 12.35

CDM 10/22/2008 61.74

SAMIR 12/31/2008 14.82

ONA 12/2/2008 105.58

HOLCIM MAROC 12/12/2008 35.90

ATTIJARIWAFA BANK 12/26/2008 61.79

SNI 12/31/2008 60.58

2009


BCP 4/9/2009 37.43

SGMB 3/23/2009 48.00

ATTIJARIWAFA BANK 6/29/2009 26.08

MINIERE TOUISSIT 9/10/2009 31.81

SNI 8/10/2009 45.16

Members’ Contacts are available on website


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CSE Background

The Casablanca Stock Exchange was established as long ago as 1929. At that time, it was known as the “Office de Compensation

des Valeurs Mobilières” (Securities Clearing Board).

The growing importance of the securities market and the introduction of foreign exchange controls prompted the authorities at

that time to improve and regulate the Stock Exchange’s organisation and operations.

The market’s organizational shortcomings hindered however its attractiveness at a time when domestic investors showed a

growing interest in stock market investment. To overcome such shortcomings, reforms were undertaken in 1967, providing

Morocco’s financial markets with a well-organized legal and technical framework.

In 1993, another major set of market reforms was undertaken with the enactment of three fundamental laws. The aim of such

reforms was to substantially modernize the market by:

- Creating the “Conseil Déontologique des Valeurs Mobilières” (CDVM, Financial Markets Authority) to ensure investor

protection ;

- Authorizing brokerage firms, specialist intermediaries, who are the only entities empowered to execute transactions in

listed securities ;

- Creating Mutual Funds, whose sole responsibility is to manage investment portfolios according to the risk diversification

principle ;

- Creating the Société de Bourse des Valeurs de Casablanca or “SBVC”, a private company responsible for managing the

Casablanca Stock Exchange and whose share capital is jointly-owned by authorised brokerage firms.

Bourse de Casablanca

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Since then, further improvements were made to stock market organization and the Casablanca Stock Exchange has been

rejuvenated : changed name to become the Casablanca Stock Exchange, a joint stock company (“société anonyme”) with a Board

of Directors and a Supervisory Board.

In January 2007, the Casablanca Stock Exchange redesigned its visual identity with a wish to support its change in size.

In terms of market organization, several new measures have been adopted, including:

- The launch of a new electronic-based trading system in March 1997 ;

- Electronic-based trading was relocated in the premises of the brokerage firms’ trading rooms

in January 2001 ;

- The trade settlement period was shortened from T+5 to T+3 in May 2001 ;

- Application of new listing requirements in January 2005 ;

Since April 2009, the Casablanca Stock Exchange officially adopted new corporate governance with a Board of Directors and a

CEO.

Reporting to the Ministry of Finance and Privatisation, the Casablanca Stock Exchange operates under well-defined Terms of

Reference and complies with rules defined in a set of rules known as General Rules.

Its mission consists in ensuring the running, growth and promotion of the Moroccan stock market by:

- Monitoring and managing trading sessions ;

- Publishing and disseminating market information ;

- Providing assistance to issuers in the listing of their securities and in the execution of their financial transactions;


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- Intervening to ensure successful transaction completion between the various parties ;

- Guaranteeing that transactions are cleared in the event of default by some intermediary.

On September 30, 2010, the Casablanca Stock Exchange’s share capital was MAD 19.020.800, jointly-owned by the seventeen

brokerage firms operating in the marketplace.

At the same date, the market capitalization of the 73 companies listed on the CSE was MAD538 billion ($67 billion) and the daily

average traded volume amounted to MAD XXX million.

Latest Achievements

High Availability of our trading system :

Even though our trading system offers a 99.5% availability to all stockbrokers, the Casablanca Stock Exchange initiated a project

in order to implement the “High availability” of our trading system one of the mandatory points of the ISO27001 certification.

In fact, the HA ensures a certain degree of operational continuity during a given measurement period. Availability refers to the

ability of the brokers’ community to access the system, whether to submit new work, update or a downtime periods.

Technically, it consists in using multiple clusters of servers running on various platforms and talking to each other using

messaging.

Casablanca Stock Exchange Road Show to meet potential issuers:

During the second quarter of 2010, a road show over the major 7 Moroccan cities was organised by the Casablanca Stock Exchange

in order to promote listing on the CSE. This event attracts more than 300 companies.

This national tour aims at explaining the advantages of an initial public offering to companies which wish to develop their

business. Also, It aims creating a space of listening, reflection and exchange for the benefit of firms and build up a bridge between

companies and all the financial actors;

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Listing of “ENNAKL,” a step towards integrating the Maghreb financial markets

“Ennakl Automobiles” of Princess Holding Group has opened 40% of its capital and has introduced 30% of it at the Tunis Stock

Exchange and 10% at the Casablanca Stock Exchange.

As a result, “Ennakl” account today, 49,000 and 9,000 new shareholders, respectively, in Tunisia and Morocco. The public

offering was a resounding success on both platforms. The demand for shares was oversubscribed 23 times in Tunisia, and 10

times in Morocco.

The success of the first dual listing of a Tunisian company in the Maghreb area reinforces the gains made towards the integration

of Maghreb financial markets and consolidates our vision to be regional stock exchange.

Special Tax Incentives to Encourage IPO’s

In order to encourage IPO’s, an incentive is offered to any new listed company that will benefit from considerable tax incentives;

a reduction in the Corporation Tax is granted for three consecutive years from the year following your company’s flotation; a 50%

reduction if the listing on the stock market by raising its share capital by at least 20% and relinquishing preferential subscription

rights; a 25% reduction if the listing was through a sale of securities.

These incentives will still available until the end of 2012.

Trading At last

On November 2nd 2009, Casablanca Stock Exchange has introduced Trading at Last (TAL) to enhance market liquidity. As a

result, the market closes at 3.35 pm instead of 3.30 pm.

This phase occurs after the auction. It is a phase of trading during which it is possible to enter orders and execute them at the

closing price and at this price only. Suspended or frozen stocks behave like in the pre-open phase.


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New Web Site

Within the framework of its strategy of development which aims to insure a better accessibility to the market information,

Casablanca stock exchange, by the 15th January 2010, has proceeded to a total revision of its Web site by making it more evolved

and by deploying it in three languages: Arabic, French and English.

This project is the outcome of a reflection and a wide benchmarking led by the Casablanca stock exchange team. The purpose

of this approach is, on one hand, to meet the needs of diverse users’ profiles and on the other hand, to have a web site with level

international standards.

The Future Outlook

The Casablanca stock exchange has adopted a new 2010-2015 development plan in order to achieve the following ambitious

objectives:

1 to increase of the number of listed companies from 73 to 150.

2 to increase of the investor base to 500.000 active individual investors.

3 to diversify CSE sources of revenues

4 and to become a regional financial hub.

For that, The Casablanca Stock Exchange has planned a series of strategic actions:

1 An active lobbying towards the government to resume the privatization process and bring to the market the state-owned

companies.

2 Continuous marketing efforts over the major Moroccan and African cities to promote listing on the CSE.

3 An active lobbying towards policy makers to encourage long term investment in equities through tax advantages and

specific legislation to bolster pension funds.

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4 The active promotion of the stock market to individual investors through a partnership with banks and stockbrokers

(Stock Exchange corners in major bank branches, promotion of web-based trading solutions) but also through educational

programmes on TV and major newspapers to improve stock market literacy.

Making sure that there are enough interesting companies trading is only one side of attracting investors to the stock market.

Another side is making sure that the exchange is modern, easily accessible and transparent.

In order to develop new sources of revenue, we create a market data unit to sell more effectively market data both in Morocco

and abroad.

The final important part of our outlooks is the launch of the derivatives market. The Casablanca stock exchange is currently

updating the electronic trading system to permit derivatives trading.

Programs undertaking in order to be responsive to the needs of investors and listed companies

The following initiatives are currently in place to encourage and also to response the investors needs:

1 We are specifically targeting small and medium sized companies in high growth sectors such as IT because they are

more needy of capital and are more attractive to investors;

2 We have obtained from policy makers special tax incentives to encourage IPO’s of small and medium sized companies (full

exoneration from corporate tax for 3 years for those who raise capital to finance their growth and 50% exoneration for those

who just sell existing shares);

3 The CSE is putting in place financial incentives for small and medium sized businesses by waiving for one year listing fees

and even contributing part of the marketing fees;

4 As effective management of investor relations was identified as a weakness of small and medium sized enterprises,the CSE

is helping them in this area by organizing for them press conferences to release their semi-annual and annual results, and

also helping them handle company announcements; in addition, the CSE is organizing seminars to promote good investor

relations practices.


Bourse de TunisProfile Website www.bvmt.com.tn

Market Regulator Conseil du Marché Financier

Address Center Babel Bloc E Montplaisir 1073 Tunis

Trading Session hours (local time) 9 a.m to 14.10 p.mt

Time Zone Greenwich Mean Time + 4 hours

Contact Person for ASEA Abderraouf Boudabous

Telephone +216 780 288

Fax +216 71 789 189

E-mail raouf,[email protected]

Name of Local Currency Tunisian Dinar


Dividends and capital gains are exempted, interest are taxed with a rate of 20%

Commodities Exchange No

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Total value traded 749,528,809.70 1,610,046,541.72 1,377,047,550.29

Total volume traded 69,654,011.00 171,894,287.00 189,568,831.00

Total number of transactions 224,476.00 313,267.00 394,562.00



Market Capitalization end of year 5,347,208,159 6,337,315,151 9,281,963,228


Turnover Ratio (%) * 12.8 23.06% 14.02

* Turnover Ratio (%)= value traded of listed stocks/market capitalization ** after excluding deals




2007 2008 2009

Foreign Investors 9 33 12

Local Investors 91 67 88

Total % 100% 100%


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Institutions 13

Individuals 87

Total %



2007 2008 2009

Finance 22 22 22

Telecommunication 1 1 2

Consumer services 6 6 6

Health 2 2 2

Consumer goods 9 8 8

Industry 6 6 7

Basic materials 4 4 4

Pertroleum and gas 1 1 1

Corporate bonds 105 126 142

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# Sectors

1 Finance

2 Consumer Services

3 Industry

4 Consumer Goods

5 Basic Materials



Bonds 2007 2008 2009

Total Value traded


Value traded on corporate bonds 55,409,844.02 59,449,261.01 6,265,943.98


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Please specify the Name of the Trading System used by the Stock Exchange - V900

Is this system locally developed - N0

or bought? - Yes

If bought, who is the Vendor? - NYSE/EURONEXT Year of implementing the system: - 2001



The Stock Exchange - No

Separate Company - Yes

If Separate Company please mention its name - Societe Tunisienne Interprofessionnelle De Compensation Et

De Depot Des Valeurs Mobilieres


or bought? - Yes

If bought, who is the Vendor? - Euroclear


Clearing and Settlement is conducted in: T+ 2 - No

T+ 3 - Yes

Others - No

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Equity Market Yes

Cash Market Yes

Derivative Market No

Bond Market Yes

Table 7: Products

Product (Stocks, Bonds, Funds, ETF’s, Derivatives Description of the Product

Stocks common stocks, none voting stocks

Bonds Corporate bonds and goverment bonds


Margin Trading No

Intraday Trading No

Online Trading Yes


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Table 8: Indices

Index Name Index Type (Price Index, Sector Index

TUNINDEX RETURN INDEX

Main Index Name Closing 2008 Closing 2009 % change

TUNINDEX 2,614.07 2,892.40 0.11


2008


Société Automobile Réseaux Tunisiens et Services 4/7/2008 37,242,304

Poulina Group Holding 8/19/2008 104,753,395

2009


SERVICOM 6/1/2009 2,467,168

LES CIMENTS DE BIZERTE 10/8/2009 76,906,392

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2008


Tunisie Leasing 1//04/2008 11,451,256

Amen Bank 4/21/2008 30,536,682

Arabe Tunisian Lease 5/5/2008 22,902,512

Banque de l'Habitat 5/5/2008 53,439,194

Société Tunisienne de Banque 5/10/2008 38,170,853

Compagnie Internationale de Leasing 7/31/2008 11,451,256

Arabe Tunisian Lease 8/8/2008 11,451,256

Tunisie Leasing 8/28/2008 11,451,256

Tunisie Leasing 11/21/2008 11,451,256


Attijari Bank 12/24/2008 38,170,853


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2009


Tunisie Leasing 2/2/09 11,386,928

Société Tunisienne de Banque -STB- 5/2/09 37,956,426

Banque Nationale Agricole 31/3/09 37,956,426

Arab Tunisian Lease -ATL - 27/4/09 22,773,856

Arabe Tunisian Bank 5/5/09 37,956,426


Union Internationale de Banque 29/6/09 75,912,852


Banque de Tunisie et des Emirats 1/9/09 37,956,426

Arab Tunisian Lease - ATL - 11/9/09 15,182,570

Tunisie Leasing 11/9/09 15,182,570

Amen Bank 23/9/09 45,547,711

Banque de l'Habitat 21/12/09 75,912,852

Cie Internationale de Leasing 23/12/09 15,182,570

Arab Tunisian Lease - ATL - 24/12/09 22,773,856

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$ $ $

1 T.VAL 295,363,458 309,950,059 459,510,755

2 MAC S.A 296,996,281 302,724,903 455,265,455

3 B.N.A.C 134,779,314 143,903,968 211,556,428

4 A.I 112,373,795 116,090,365 173,433,660

5 AXIS 114,117,946 111,602,675 171,350,961

Members’ Contacts are available on the SEM website


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Background on The Tunis Stock Exchange

Tunis Stock Exchange was created in 1969 as public institution. A major reforming process has begun in 1988 as part of a

programme to liberalize the economy. But the milestone, in the history of the Tunisian capital market, and the Stock exchange,

dates to 1994 with the reorganization of the financial market: for a better adherence to international standards, Tunis Stock

Exchange was entrusted with the management of the market while a separate regulatory body was created to supervise market

operations, issue regulations, protect investors and oversee the Stock Exchange markets.

The Tunis Stock Exchange is a private entity, exclusively and equally owned by the brokerage firms (23 as of August 2010). These

firms has created a Market Guarantee Fund to guarantees the settlement of the transactions traded on the market, between

the brokers, in case of failure of one or more of them to pay cash or to deliver securities. This Fund is managed by Tunis Stock

Exchange.

Since 1996, Tunis Stock Exchange runs on an Electronic Trading System – NYSE Euronext’s NSC V900 - ensuring efficient and

transparent pricing of securities.

Latest Acheivements

An Alternative Market for small and medium sized companies was created in 2007.

A Clients Guarantee Fund was created in 2009 to cover the clients of brokerage house against non commercial risks (failure to

return funds or securities…)

Since 2009, the main market index, the TUNINDEX, and the sectoral indices are weighted by floated capitalization rather than

by the entire capitalization

In 2010, Tunis Stock Exchange has joined the World Federation of Exchanges as a correspondent.

Tunis Stock Exchange

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To develop its markets, broaden its official list and offer the best services to its members and other market players, Tunis Stock

Exchange has created a Marketing and Development Department.

Future Outlook

There will be new challenges for the Tunis Stock Market to meet in 2011, notably to follow supporting the privatisation program

announced by his Excellency the President of the Republic which is targeting to open the capital of 30 companies through

the exchange from 2009 to 2014. The Tunis Stock Exchange will take part in the pilot program put in place by the Ministry of

Industry to list 60 firms operating in different economic sectors, with particular focus on specialised high-tech companies. This

programme launched in 2005 is reactivated in 2010 and will be pursued in 2011.

Moreover, the Exchange will develop its commercial capacity to enhance the stock market‘s role in financing private investment.

In this case a new commercial department is under creation to prospect new companies to list and to develop new financial

instruments.

The Tunis Stock Exchange is also studying the feasibility of launching a new compartment to list the stocks of non resident

companies. The goal is to make the Exchange better known internationally and become a financial regional centre to attract

foreign capital and well known financial institutions.

Initiatives for investors and listed companies

The Tunis Stock Exchange has adopted since 2005 a promotion strategy to improve its perception among investors and business

to raise awareness of its services. This strategy has an objective to develop the role of the financial market in financing the needs

of the economy and help the market gaining new strength. Many actions targeting investors and enterprises, notably the small

and medium, were done. Many seminars are organised through main cities to higher awareness of young leaders about the

mechanisms of financing projects through financial market.

The Exchange also gives priority to interaction with the educational environment. We launched an annual prize for the best

research in finance and held a number of talks at universities and made site visits to both university and high school students.


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Furthermore, the TSE established a close relationship with all categories of the media, to help create a better financial culture

among the public. This took the form of drafting articles, participating in radio and television programmes and working with

journalists.

The TSE participates in specialised financial events for developing contacts with investors and heads of businesses who want to

find out about the stock exchange’s operational mechanisms and the various incentives available for both investment and listing

companies on the exchange.

Finally, TSE will in November 2010 move to its new headquarters that will reflect its standing as a reliable modern institution.

Better services will be offered to investors and listed companies, notably a large multi-purpose room for presenting periodic

financial updates to financial analysts and the media.

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Profile

Website www.dse.co.tz

Market Regulator Capital Markets and Securities Authority (CMSA)

Address DSE, Twiga Building ,Samora Avenue, P.O Box 70081, Dar es Salaam

Trading Session hours (local time) 10.00 am - 12.00 pm


Contact Person for ASEA Gabriel kitua / Emmanuel Nyalali

Telephone (255)-(22)-2123983

Fax (255)-(22)-2133849


Name of Local Currency Dar es Salaam Stock Exchange (DSE)


Zero capital gain tax for listed companies and bonds; Zero stamp duty on transaction executed; 5% withholding tax on listed company’s dividend; Zero witholding tax on Government. and Corporate. bonds with maturity from 3 yrs and above; tax-exempt on CIS schemes


Dar-es-Salaam Stock Exchange


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Total value traded 15,539,904.60 20,610,569.00 25,710,871.14





Market Capitalization end of year 2,755,480,043.37 2,664,264,730.56 3,945,401,564.40

Market Capitalization as % of GDP

Turnover Ratio (%) * 0.005639636 0.01 0.006516668





2007 2008 2009



Total % 100% 100% 100%

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Institutions 60.73 57 34

Individuals 39.27 43 66

Total % 100% 100% 100%



2007 2008 2009

All Share Index 10 14 15

Tanzania Share Index N/A 11 11

Banking and Finance N/A 3 4

Indutrial Allied N/A 6 6

Commercial Service N/A 1 1

Foreign Share Index N/A 4 4

Corporate Bonds


# Sectors

1 All Share Index

2 Tanzania Share Index

3 Banking and Finance

4 Industrial Allied


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Please specify the Name of the Trading System used by the Stock Exchange -


Or bought? - YES

If bought, who is the Vendor? - Millenium IT

Year of implementing the system - Dec-06


Where do Clearing & Settlement take place? - The Stock Exchange - YES

Separate Company - NO


Is this system locally developed or bought? - Bought

If bought, who is the Vendor? - Millennium IT

Year of implementing the system: - Dec -06


T+ 2 NA

T+ 3 Bonds

Others T+5

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Equity Market YES

Cash Market NO

Derivative Market NO

Bond Market YES

Table 7: Products

Product (Stocks,Bonds, Funds,ETF's,Derivatives ) Description of the Product

Shares Common and Preference shares

Bonds Government and Corporate Bonds


Margin Trading N/A

Intraday Trading YES

Online Trading N/A


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Table 8: Indices


ALL SHARE INDEX (ASI)

TANZANIA SHARE INDEX (TSI)

Index Movement of all Companies

Index Movement of Local Companies


ASI

TSI

1,011.21

N/A

1,105.18

1,000.00

1005.18


2008


NICO 4-Jul-08 11,716,004.06

DCB 12-Aug-08 1,171,600.52

NMB 3-Nov-08 49,207,217.06

2009


CRDB 12-May-09 14,326,198.94

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2009


Government of Tanzania Treasury Bond (2-10 years) N/A 165.21

2009


ALAF LTD. 24-Feb-09 11.57

Government of Tanzania Treasury Bonds (2-10 yrs) N/A 226.12

237.69


Ranking Purchases Sales Total

Stockbrokerage Units $ $ $

1 ORBIT SECURITIES 7,404,796.85 8,057,529.57 15,462,326.42

2 TANZANIA SECURITIES 5,547,768.04 4,779,515.98 10,327,284.02

3 VERTEX INTERNATIONAL 2,874,532.08 3,070,219.02 5,944,751.10

4 SOLOMON SECURITIES 2,272,320.84 1,607,908.77 3,880,229.61

5 CORE SECURITIES 1,643,151.50 1,558,427.65 3,201,579.15

6 RASILIMALI LTD 498,116.99 1,167,085.29 1,665,202.28

Ranking Dealing Units Purchases Sales Total

$ $ $


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1 CRDB 7,980,197.40 7,980,197.40 15,960,394.81

2 NMB 5,800,946.63 5,800,946.63 11,601,893.26

3 TPCC 2,477,920.93 2,477,920.93 4,955,841.86

4 TCCL 1,699,086.58 1,699,086.58 3,398,173.17

5 TCC 1,013,213.10 1,013,213.10 2,026,426.20

6 TBL 849,545.24 849,545.24 1,699,090.48

7 SWIS 241451.3131 241451.3131 482,902.63

8 DCB 170773.3136 170773.3136 341,546.63

Members’ Contacts are available on the DSE website

www.dse.co.tz

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Dar es Salaam Stock Exchange Background

The Dar es Salaam Stock Exchange (DSE) is a body corporate incorporated in 1996 under the Companies Act, 2002 as company

limited by guarantee without a share capital. The DSE membership consists of Licensed Dealing Members (LDMs) and Associate

Members. The LDMs are members that are allowed to access DSE’s trading facilities to trade on securities on behalf of their

investors as agents or to on their own behalf as principals. Associate members are all non-LDM members (natural and legal)

who have interest in the development of capital markets in Tanzania including the following; listed companies, companies with

a potential for listing, institutional investors, professional associations, as well as individuals.

The DSE governance structure is built on three pillars. The apex pillar is the General Meeting of the members of the company.

The second pillar (below the General Meeting) is the Governing Council of the DSE. All the governing functions of the DSE are

vested into the Council. The Council is accountable to the General Meeting. The third pillar is Management of the DSE under the

leadership of the Chief Executive Officer. Management, which is composed of the CEO and Managers, is vested with powers to

run the day to day activities of the DSE. Management is answerable to the Governing Council.

The DSE was established to facilitate implementation of the Tanzanian Government’s economic reforms and encourage wider

ownership of public resources. Of recent, DSE has witnessed companies looking for capital to expand their business operations

like the Dar es Salaam Community Bank and CRDB Bank raising funds above their expectations. Secondary bond trading activities

have also picked up. This trend assures not only companies with bankable projects to get funding through the DSE but also the

Government can also raise funds for its development projects hence lessening Government dependence on external borrowing.

Latest Achievements

During financial year 2008/09, the DSE made a remarkable performance in terms of listing activities, public awareness and

financial management. On listing, the DSE listed five new equities namely, National Investment Company Ltd (NICOL), Dar es

Salaam Community Bank Ltd (DCB), National Microfinance Bank plc (NMB), Kenya Commercial Bank Ltd (KCB) and CRDB

Bank Ltd (CRDB). These new listings provided Tanzanian investors with more investment opportunities by investing in profit

making companies thereby improving their standard of living due to capital appreciation and paid dividends. Furthermore, the

Dar es Salaam Stock Exchange


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DSE in collaboration with the securities market regulator and brokerage community conducted awareness campaigns in eight

regions sensitizing the SMEs and investing public on Enterprise Growth Market (EGM).

DSE continued to provide the market for secondary trading of securities during the year 2009/10.. There was a marked increase

in number of deals and turnover at both the equity and fixed income securities market. ForOn the equity market DSE recorded a

total turnover of US$ 41.4138.14 million for the year 2009/10 in comparison to the previous year i.e. 2008/09 when a turnover

of US$ 26.56 million was recorded. On bonds market DSE recorded a total turnover of US$ 106.56203.34 million for the year

2009/10 compared to the turnover of US$ 5.92173.11 million recorded in the year 2008/09.

The Future Outlook

There are a number of strategic targets which have been set by the DSE for year 2010/11-2012-13. Among others, they include

the following:

(i) To strengthen the DSE’s self regulatory capacity to ensure that market integrity is safeguarded;

(ii) To operationalize the Enterprise Growth Market (EGM) segment to allow SMEs and start-up companies to raise long term

capital for their businesses;

(iii) To strengthen market infrastructures in order to guarantee business continuity, reduce securities settlement risks and

provide countrywide access to DSE trading facilities. This will involve having in place a Disaster Recovery Site (DRS),

connecting the Central Depository System (CDS) to National Payment System (NPS) and installing WAN infrastructure;

(iv) To conduct wide public awareness campaigns to create awareness on the importance of the DSE to the country’s

economy;

(v) To accommodate new products in the market; developments in the economy and growing sophistication on part of market

intermediaries and investors is expected to call for innovation and providing platforms for new

(vi) The Government has resolved together with the other 4 Governments of the EAC member countries and 14 Governments

of the SADC region to fast track regional integration efforts including the capital market sector. As a major player in capital

market, the DSE is expected to participate in several regional capital markets integration initiatives including developing

market infrastructures, harmonization of regulatory regime and capacity building.

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Initiatives to Respond to Investors and Issuers

To Strengthen Information Dissemination Mechanism

To satisfy the demand of market information by both local and international investors as well as financial analysts the DSE plans

to introduce short messages (sms) reporting, engage data providers and improve its website in order to ease access to market

information.

Public Awareness Campaigns

The DSE is planning to conduct public awareness campaign that will involve TV and radio programmes, exhibitions as well as

specialised training for potential issuers and investors. This will create public awareness on the importance of the DSE to the

economy in respect of raising capital for businesses and mobilising savings for investment.

Operationalization of Market Window for SMEs (Enterprise Growth Market Segment - EGM)

The EGM is a new window set to cutter for medium (SMEs) and starter up companies with potential for listing. This segment

will allow SMEs and Start-up companies with growth potential but do not meet criteria for listing in the Main Investment Market

segment raise needed funds for expansion of their businesses.

Municipal and Infrastructure Bonds

The DSE plans to introduce municipal and infrastructure bonds market segment. The introduction of municipal and infrastructure

bonds platform at the DSE will enhance Government effort to finance its projects. Major constraint for implementation of

bankable projects by Local Government Authorities and other Government institutions has been the matching of long term

projects against annual budgets.


Profile

Website www.douala-stock-exchange.com

Market Regulator Financial Markets Commission

Address 1450, Blvd de la Liberté - P.O.Box. 442 Douala-Cameroun

Trading Session hours (local time) Every Wednesday (from 9 to 11 a.m.)

Time Zone GMT +1:00 Yaoundé

Contact Person for ASEA Mireille DICKA

Telephone †23733438587

Fax †23733438584


Name of Local Currency Franc CFA (XAF)

Tax Rates (dividends, interest, capital gain) dividends 10% (domestic investors) 15% (foreign investors)

Commodities Exchangeshares, bonds and government bonds (OTZ)

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Section One : Trading StatisticsCurrency: XAF



Total value traded (1) 52,895.15 247,483.31 651,341.42

Total volume traded 443.00 3,006.00 15,004.00

Total number of transactions 57.00 97.00 178.00



Market Capitalization end of year 6246892 44216580 165597373.9


Turnover Ratio (%) * 0.847 0.560 0.393





2007 2008 2009


Local Investors 100.00 90 86

Total % 100% 100% 100%


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2007 2008 2009

Institutions 5% 7% 5%

Individuals 95% 93% 95%

Total % 100% 100% 100%



2007 2008 2009

Main Investment Market Segment

Sector “agriculture” 0 1 2

Sector “industry” 1 1 1


Corporate Bonds 1

Over the Counter

Government debt bonds (OTZ) 1 1 1

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# Sectors

1 Industrial

2 Agriculture

3

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5



Currency: XAF

Bonds 2007 2008 2009

Total Value traded 48,000.00 8,472,000.00 6,984,700.80

Value traded on government debt bonds (OTZ) 48,000.00 8,472,000.00 6,970,000.00

Value traded on corporate bonds 14,700.798


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Please specify the Name of the Trading System used by the Stock Exchange - Titan


or bought? - Yes

If bought, who is the Vendor? - 3V Finance (Vieil et Tradition-France)






If Separate Company please mention its name - Central depository-Caisse Autonome d’Amortissement (CAA)


or bought? - Yes

If bought, who is the Vendor? - Euroclear

Year of implementing the system: - four (4)

Clearing and Settlement is conducted in: T+ 2 - No T+ 3 - N0

Others - T+4

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Equity Market Yes

Cash Market

Derivative Market

Bond Market Yes

Table 7: Products


Shares common shares

Bonds Government ant corporate bonds


Margin Trading No


Online Trading No


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Section Seven : IPOs and Debt Securities

Currency XFA

2008

Company Date of IPO Value of IPO (million)

SAFACAM 7/9/2008 2,899

2,899

2009

Company Date of IPO Value of IPO (million)

SOCAPALM 4/7/2009 11,806.2

IFC 11/7/2009 20,000.0



$ $ $

1 SGBC 62.00 80.00 142.00

2 CA-SCB 67.00 14.00 81.00

3 BICEC 28.00 23.00 51.00

4 CBC 11.00 17.00 28.00

5 AFB 3.00 1.00 4.00

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Douala Stock Exchange (DSX)

Background

Creation of the DSX

The economies of Central Africa, which consist of Cameroon, the republic of Congo, Gabon, Equatorial Guinea, the central

African republic and Chad have carried out, over the past two decades, structural adjustment programmes aimed at restoring

their macroeconomic equilibrium.

In view of the completion of these programmes, Cameroon established a financial market regulated by law no.99/015 of the

22nd December, 1999 concerning the establishment and organisation of a financial market, in order to respond to the needs of

privatisations and long-term financial investment. The Douala Stock Exchange was created on the 30th November 2001 and

inaugurated on the 23rd April 2003 by the Prime Minister.

Introduction to the DSX

Douala Stock Exchange is a market entreprise operating under the terms and conditions of Law no. 99/015 of the 22nd December

1999 which regulates the creation and organisation of financial markets. It is a limited liability company with a Board of Directors

and share capital of 1.740.500.000 Francs CFA divided as follows : 63,7% by banks : Amity Bank, Afriland First Bank, Banque

Internationale du Cameroun pour L’Epargne et le Crédit, Citibank Cameroun, Commercial Bank of Cameroon, Crédit Agricole

- Société Commerciale de Banques Cameroun, Ecobank, Union Bank of Cameroun, Standard Chartered Bank Cameroon ,

Société Générale de Banque au Cameroun, Crédit Foncier du Cameroun and FMO ; 23% by public entities : Caisse Autonome

d’Amortissement, Caisse Nationale de Prévoyance Sociale, Caisse de Stabilisation des Prix des Hydrocarbures and the Société

Nationale d’Investissement du Cameroun, and 13,3% by insurance companies : Activa Assurances, Cameroon Insurance, Pro

Assur, Compagnie Professionnelle d’Assurances, Société Africaine d’Assurance et de Réassurance du Cameroun, and Satellite

Insurance.

The Board of Directors consists of twelve (12) members including five (5) representatives of Investment Service providers and

members of Douala Stock Exchange (brokers), three (3) representatives of public investors, one (1) representative of the insurance


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companies, one (1) representative of listed companies, one (1) representative of the banking profession and one (1) representative

of the State of Cameroon.

Under the authority of ther Financial Markets Commission, the financial market is responsible for : the administration of

the market, the introduction, listing and quotation of shares (activity devolved to the Douala Stock Exchange « DSX »); the

admission, conservation and circulation of shares (activity delegated to the Caisse Autonome d’Amortissement « CAA ») and the

cash settlement of market transactions (activity delegated to the Société Générale des Banques au Cameroun « SGBC »).

In addition to the General management, the organisational chart of Douala Stock Exchange comprises three key functions;

Market and Operations, Administration and Finance, and Information and Technology System.

Functioning of the DSX

Douala Stock Exchange applies the principle of a spot or cash market which is centralised and order-driven. These orders are

recorded in the DSX quotation system by the Investment Service Providers. There is currently one trading session per week,

which is planned to increase to 3 sessions per week at the end of 2010. Delivery of shares and settlement of accounts will take

place wiithin three days following the trading session, as opposed to four days currently.

Douala Stock Exchange consists of three market units: equity, corporate bonds and government bonds.

Currently, shares in three (03) companies (Société des Eaux Minérales du Cameroun-SEMC, Société Africaine Forestière et

Agricole du Cameroun-SAFACAM, and Société Camerounaise de Palmeraies-SOCAPALM) are listed in the first market unit

(shares and capital securities), and one bond (International Finance Corporation -IFC-) is listed in the second market unit (bonds

and credit instruments). There are currently 13 brokers locally called Investment services providers, namely; AFRILAND FIRST

BANK - BAC - BICEC - BMCE Capital Cameroun - CA-SCB - CBC - CENAINVEST - CITIBANK - EDC Investment Corporation -

SFA - SCBC - SGBC - UBA.

Conditions for eligibility and listing on the DSX

The stock market is composed of two divisions, one for large and multinational companies and the other for small and medium

size companies and is guided by a number of regulations designed to ensure transparency and the credibility of operations:

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• For SHARES, a Limited Liability Company may be admitted into the first division (shares) of the DSX provided its stock

market capitalisation on introduction exceeds 500 million F.CFA (USD 1 million), and it can demonstrate a net margin

of 3% of its turnover for the previous three years, and can present three years annual audited and consolidated accounts.

Equally, the company is required to sign a contract which provides for a quotation or a price instruction each trading

session. Finally, it must offer to the public at least 20% of its share capital on listing.

• For the second division, credit instruments and certificates, any limited liability company is eligible if it shows a stock

market capitalisation of at least 200 million F.CFA (USD 400 000) on listing, two years audited accounts and a strong

profit-making potential. Equally, the company is required to sign a contract which provides for a quotation or a price

instruction every five trading sessions. Finally, it must offer to the public at least 20% of its share capital on listing.

• For CORPORATE BONDS, any limited liability company with share capital of at least 200 million FCFA (USD 400 000)

and who issues at least 500 million FCFA (USD 1 million) is eligible.

• For GOVERNMEMT BONDS, admission is open according to the law.

1. Latest Achievements

The equity market

Since the beginning of 2010, DSX has held 40 trading sessions with a variety of shares on offer with good performance from

SEMC and SAFACAM shares and a poor performance by SOCAPALM shares.

SEMC shares showed the best performance during this period. On the 20th January 2010, following a capital increase by

incorporation of reserves decided by the companies stakeholders, the share price underwent a technical adjustment by a dividing

up of 50% of its price which amounted to a value of 57500 FCFA (USD 115). From that point on, SEMC shares showed a remarkable

progression, passing from FCFA 57 500 (USD 115) in Janvier 2010 to FCFA 89 223 (USD 118.45) on the 30th September 2010.

During the same period, SAFACAM shares remained relatively stable at FCFA 36 000 (USD 72). This price stability during this

period does not reflect the performance of the company which showed a return of 13%.


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SOCAPALM shares had a turbulent year due to the partial collapse of its share price from 40 997 FCFA (USD 82) at the beginning

of the year to 35 020 FCFA (USD 70.04), a fall of 14.57%. However, the issuer and the ISP having recently signed a contract, a

period of steady growth is now anticipated.

The corporate and government bonds market

The IFC bond, currently the only bond quoted on the market, is quoted at 97% as of the 30th September 2010.

Stock market capitalisation at the end of September amounted to FCFA 78 564 346 850 (USD 157 128 693.7), compared with

FCFA 82 602 840 645 (USD 165 205 681.29) at the beginiing of the year, a fall of 5,14 %.

This fall is principally attributed to the poor performance of SOCAPALM shares and to technical adjustments to prices of the

three listed shares following the payment of dividends to shareholders for the financial year 2009.

Total volume of transactions was FCFA 211 076 863 (USD 422 153.73), SOCAPALM and SAFACAM shares being the most

actively traded.

Volume of Exchanges

On a monthly basis, an analysis of volume of exchanges was carried out for the month of June, representing 31 % of volume at

FCFA 63 113 260 (USD 126 226.52) , followed by the volume of transactions in Septembre at FCFA 28 654 522 (USD 57 309.04)

, a share of 19.08%, and then that of January at FCFA 44 084 854 (USD 88 169.71) , a share of 21%.

The Credit instrument market showed a turnover of 10 534 083 F CFA (USD 21 068.17) , the equivalent of 1 047 IFC bonds.

Payment of Dividends

Dividends were paid at the end of the first half year of 2010 for the three listed shares for 2009.

In June, SEMC paid to its shareholders a dividend of FCFA 4 950 (USD 9.9) . In July, SOCAPALM paid a dividend of FCFA 1 282

(USD 2.56), and in August, SAFACAM paid a dividend of FCFA 4 272 (USD 8.54).

These different transactions were the origin of three events impacting on shares listed on the SDX within the framework of

dividend payments.

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2. The Future Outlook

Credit instrument market

Two (2) bond issues are envisaged for the last quarter of 2010:

• The State of Cameroon plans to make a bond issue of a maximum amount of 200 billion Fcfa (USD 400 millions) within the

framework of the carrying out of its budget under the terms and conditions of the financial laws of 2010. Revenues raised

are destined for development projects. Bonds thus issued shall be listed on the Douala Stock Exchange. The syndicate of

Investment Service Providers concerned, AFRILAND, CITIBANK and SGBC have been notified officially by the Ministry

of Finance.

• The Banque de Développement des Etats de l’Afrique Centrale (BDEAC) plans to launch, within the CEMAC zone, a bond

issue to the value of 100 billion Francs CFA (USD 200 millions). A preliminary drawing of 30 billion fcfa (USD 60 millions)

is planned for the fourth quarter of 2010. Bonds shall be issued and listed on the two financial markets of the CEMAC

zone.

Revision of strategy

Douala Stock Exchange seeks to increase the number of listed companies. It is therefore carrying out an intensive marketing

strategy which aims to draw attention to the tax advantages offered by the State of Cameroon in order to attract the next wave of

privatisated companies as well as companies and local groups seeking long term finance.

With this aim in mind, the organisational capacities will be reinforced both in terms of information systems and humnan capital.

In addition to the three existing functions (Markets and operations, Administration and Finance, and Information Systems), a

promotion and product development function will be created as well as legal and compliance to improve company governance.

As far as sources of revenues are concerned, they will be extremely diversified. IT equipment is being upgraded in order to

integrate itself into the panafrican inter-stock exchange system and EURONEX


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Creation of a division for small and medium sized businesses

Since the official launching of Douala Stock Exchange operations, only the large and multinational companies division is

operational. The management objective is to enhance the small and medium size company division by 2011 with the support of

the government of Cameroun and international stakeholders. Therefore, the admission criteria in to this segment of business will

be more flexible and integrated within the framework of a guarantee fund for small and medium size companies.

Partnerships and exchanges with other stock exchanges

DSX intends to reinforce exchange and cooperation with other stock exchanges in the franc Zone and beyond.

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Egyptian Exchange Website www.egx.com.eg

Market Regulator The Egyptian Financial Supervisory Authority

Address

Trading Session hours (local time) Pre-Opening Session 9:45 AM 10:15 AMRandom Closing 10:15 AM 10:30 AMOfficial Trading Session 10:30 AM 2:30 PMBonds Market (Primary Dealers) 10:30 AM 02:30 PMNILEX (SMEs Market) 11:00 AM 12:00 PMOver-the-Counter MarketDeals Market 09:45 AM 02:00 PMOrders Market* 02:45 PM 03:15 PM


Contact Person for ASEA Mrs. Heba Serafi

Telephone +202 23933984- 202 23921402 Ext 880

Fax +202 239 70 461


Name of Local Currency Egyptian Pound

Tax Rates (dividends, interest, capital gain) Taxes are not applicable on capital gains


*Trading takes place on Monday & Wednesday only


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Total value traded (USD) 65,834,904,722.82 96,056,030,223.45 81,707,244,812.59

Total volume traded 15,091,289,631.95 25,556,094,683.70 36,601,431,681.00

Total number of transactions 9,016,116.00 13,456,318.00 14,627,805.00





Turnover Ratio (%) * 38.7 70.3** 49.9**

* Turnover Ratio (%)= value traded of listed stocks/market capitalization ** after excluding deals




2007 2008 2009



Total % 100% 100% 100%

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2007 2008 2009

Institutions 39 34 37

Individuals 61 66 63

Total % 100% 100% 100%



2007 2008 2009

Banks 23 23 21

Basic Resources 18 15 11

Chemicals 20 16 13

Construction & Materials 55 49 38

Financial Services excluding banks 37 43 37

Food & Beverages 54 38 30

Healthcare & pharmaceuticals 28 22 21

Industrial goods & services and Automobiles 53 44 35

Media 1 1 1

Oil & Gas 5 5 5

Personal & household products 32 28 20

Real Estate 45 34 32

Retail 14 11 9

Technology 7 4 3


Travel & Leisure 36 33 24

Utilities 4 4 3


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# Sectors

1 Real Estate

2 Personal & Household products

3 Construction & materials

4 Financial Services excluding banks

5 Industrial goods and services and Automobiles



Bonds 2007 2008 2009

Total Value traded 4,344,364,856.29 3,630,012,514.28 7,401,447,478.76

Value traded on governmental bonds 4,319,702,602 3,600,159,602 7,392,040,690

Value traded on corporate bonds 24,662,254 29,852,912 9,406,789

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Section Fhree : Trading System

Please specify the Name of the Trading System used by the Stock Exchange - X-Stream

Is this system locally developed - N/A

or bought? - N/A

If bought, who is the Vendor? - NASDAQ OMX Group






If Separate Company please mention its name - Misr for Central Clearing, Depsitory and Registery (MCDR) Is this system locally developed - N/A

or bought? - Yes

If bought, who is the Vendor? - N/A

Year of implementing the system: - N/A

Clearing and Settlement is conducted in: T+ 2 - Yes

T+ 3 - No

Others - T+Zero for the securities eligible for Intra-day trading (Real Time Gross Settlement)

T+1 for treasury bonds traded according to the Primary Dealers system


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Equity Market Yes

Cash Market NA

Derivative Market NA

Bond Market Yes

Table 7: Products

Product (Stocks, Bonds, Funds, ETF’s, Derivatives) Description of the Product

Stocks All common stocks as well as 3 companies with preferred stocks

Bonds Government and Corporate bonds with the bulk owed to Treasury Bonds Issued through the Primary Dealers System

Mutual Funds Closed Ended Funds

ETFs Rules and Regulations are issued


Margin Trading YES*

Intraday Trading YES

Online Trading YES

* not activated yet

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Table 8: Indices


EGX 30 (Main index) Free float market capitalization weighted index

EGX 70 Price Index

EGX 100 Price Index

Dow Jones EGX Egypt Titans 20 Index Free float market capitalization weighted index


EGX 30 (Free Float Market Capitalization weighed Index)

4596 6,209.00 35%

EGX 70(Price Index)

482.24 642.93 33%

EGX 100(Price Index)

780.82 1059.33 36%

DJ EGX Egypt Titans 20 Index(Free float market capitalization weighted index)

976 1314 35%


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Sector Indices


Construction & Materials 864.42 1,480.97 71%

Real Estate 670.02 1,118.16 67%

Banks 845.23 1,249.35 48%

Basic Resources 550.42 762.9 39%

Financial Services excluding Banks 528.09 724.52 37%

Healthcare & Pharmaceuticals 972.31 1,273.04 31%

Personal & Household Products 491.5 533.16 8%

Food and Beverages 915.19 973.54 6%

Industrial Goods, Services & Automobiles 1560.13 1,650.64 6%

Telecommunications 477.59 501.94 5%

Travel & Leisure 565.23 585 3%

Chemicals 789.21 761.83 -3%

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2008


Palm Hills Development Apr-08 338.57

Maridive & Oil Services Apr-08 271.85

Misr Duty Free Shops* May-08 1.83

Pioneers Holding* Jun-08 164.53

* The Company’s offering was executed on the money market

2009


- -

2008


Housing bonds 2008 0.49

Primary Dealers government bonds 2008 2811.18

Contact (3rd issue) Jan 48.30

Egyptian Securitization Company (1st issue) Apr 59.85


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2009


Primary Dealers government bonds 2009 10,756

International Company for Leasing "Incolease" September 36

Contact (4th issue) Jan 69

Al Taamer Securitization Company June 848

Contact (5th issue) Nov 85

11,795



$ $ $

1 Beltone Securities Brokerage NA NA 29.72

2 Hermes Securities Brokerage NA NA 24.06

3 Financial Brokerage Group NA NA 7.29

4 Pioneers for Securities NA NA 7.11

5 Pharos Securities NA NA 5.47

Members’ Contacts are available on the EGX website www.egx.com.eg

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Exchange Background

The Egyptian Exchange (EGX) dates back to more than 125 years. Alexandria Stock Exchange was officially established in 1883,

followed by Cairo in 1903. The two exchanges were very active in the 1940’s and the Egyptian Stock Exchange ranked fifth in the

world. Nevertheless, the socialist policies adopted in the mid 1950’s led to a drastic reduction in activity on the stock exchange,

which remained dormant during 1961 till 1992.

In an attempt to re-activate the market, the government opted for the public offering of the state owned enterprises through the

privatization program, which provided the impetus for its revival.

In 1997, EGX started its modernization program in terms of legislation and infrastructure to keep abreast with globalization and

internationalization.

Egypt’s Stock Exchange now operates through two locations; Cairo & Alexandria, that are managed by the same chairman.

EGX Board of Directors is composed of the Chairman and the Vice-Chairman, who are appointed by the Prime Minister, a

representative of the Central bank of Egypt, three representatives of securities companies, one representative of custodian banks

as well as two representatives of listed companies, one of which is a small or medium company.

EGX does not impose any restrictions on foreign investment or profit repatriation in the Egyptian securities market.

No taxes are levied on dividends, capital gain and interest on bonds for individuals, mutual funds and international funds.

The Egyptian Exchange in 2009

Technological Development

Strongly committed to market integrity, and in order to keep abreast with the latest technological advancements, based on its

vision to become the financial hub and investment gateway in the Middle East and North African (MENA) Region that best serves

its stakeholders, EGX has contracted, by the end of 2009, with MilleniumIT company which will provide the Exchange with a

state-of the-art surveillance system that can meet the Egyptian market future needs and provides an equitable, transparent and

high quality market place. Built around an evolutionary architecture, MilleniumIT will help the EGX effectively maintain an

orderly market in today’s fast paced, electronic trading environment.

Egyptian Exchange (EGX)


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Additionally, and in line with our belief in the importance of having global exchanges’ cooperation and in order to increase cross

border trading; EGX has finalized all preparations to launch EGX FIX HUB, which would provide connectivity/linkage services

for the benefit of Egyptian and international brokers, and open up new revenue streams and opportunities for both broker firms

and investors. This will give EGX access to larger pools of liquidity and would set EGX as the hub in the Middle East and Africa

region.

A joint venture between EGX and Nasdaq OMX created Egypt for Information Dissemination to enhance the efficiency of EGX

by increasing the level of automation & transparency of disseminated information providing an array of informational services

related to EGX such as real time & delayed data feeds for brokers and investors.

The launch of New Indices

EGX, have launched a set of new indices during 2009 to better serve local as well as foreign investors. EGX has launched EGX 70

Price Index, which tracks the performance of the 70 active companies, after excluding the 30 most active constituent-companies

of EGX 30 Index. In addition, EGX started computing EGX 30 Index in US dollar terms; a common currency unit that helps in

comparing stock exchange performances or alternative investment instruments. Also, EGX 100 Price Index was introduced to

help investors track a larger segment of traded companies in the Egyptian market.

Another equally important initiative was the launch of the S&P/EGX ESG Index in March 2010, in collaboration with Standard &

Poor’s; the first of its kind in the MENA region. The index helps raising the profile of those companies that perform well within

the three parameters of environmental, social and corporate governance responsibility, when compared to their market peers.

Listing on EGX

EGX listing requirements have been set according to international standards. All standards are periodically reviewed to

accommodate for the listing of several asset class products and to ensure that EGX attracts and retains the strongest issuers with

sustainable business models. EGX maintains an effective policy in enforcing listing, disclosure and corporate governance rules

on issuers.

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In this context, 2009 witnessed significant amendments to EGX Listing rules, providing more flexibility, wider independence

for the Exchange as well as better disclosure and effective insider trading monitoring. The amendments have also introduced

some changes that provide more flexibility on the operational side of the capital market, while imposing higher fines on serious

securities crimes and regulations’ breaches.

The year 2009 has also witnessed the listing of the first Egyptian Depository Receipts (EDRs) in the Egyptian market.

From another perspective, the activation of the Bond market has been one the main government’s priorities for the past few years

and several measures have been taken to activate this market.

In November 2009, the EFSA issued Decision No 71, accrediting new credit-rating agencies. This was followed by the issuance of

Ministerial Decree No 1 of 2010, on January 3rd , allowing non corporations (public authorities, international organizations and

other non corporations) to issue bonds for the first time in the Egyptian market as well as simplifying corporate bonds issuing

requirements. This should allow authorities and supra national bonds to get listed on EGX.

Furthermore, the Egyptian Exchange has signed a cross listing agreement with Shanghai Stock exchange to list the ETFs.

Protection of Minority Shareholders

EGX has in place a set of rules governing acquisitions and minority shareholders’ rights. According to the rules, the company

acquiring 5% in another company has to disclose to the market the details of the transactions. If the acquired stake is 25% or

more, the acquirer company is to disclose the aim of the acquisition deals and his future plans for the company.

In case of the purchase of joint stock companies with the purpose of acquisition of ownership and management, it is obligatory to

provide mandatory purchase offers to protect minority rights where acquisition is more than 90% of capital and voting rights.

This in addition to the enforcement of disclosure and corporate governance practices and adherence to the Egyptian Accounting

Standards, in line with IFRS.

Nilex Moves Forward

Despite the tough time experienced by world capital markets, suffering from the repercussions of the global financial crisis,

Nilex; the Exchange’s market board for mid and small cap companies, was able to attract 13 companies on board and expects to

end the year 2010 with 20 listed and traded companies.


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Moreover, an Advisory Committee has been established comprising all stakeholders to activate and develop NILEX market and

streamline procedures to enable SMEs receive necessary financing and increase their capital. The Committee aims to develop plans

and strategies for financing SMEs through the capital market, and help removing the obstacles currently facing the market.

Meanwhile, the Exchange continued its extensive marketing plan to promote the benefits of getting listed on Nilex for potential

SMEs. On January 11, 2010, EGX participated in a workshop organized by the Egyptian Junior Business Association (EJB)

about the main financing constraints faced by SMEs in Egypt. On 18 January 2010, EGX, in collaboration with the Information

Technology Industry Development Agency (ITIDA), organized a workshop to introduce NILEX project for a number of promising

IT companies.

From another perspective, three funds has been established dedicated for investment in SMEs with a capital exceeding LE

700 million. The General Authority for Investment in Egypt has also launched an L.E 1 billion fund dedicated for investment in

SMEs.

Worth mentioning that EGX has entered into an agreement with Industrial Modernization Center (IMC) to provide necessary

support to SME’s that helps them get listed. IMC agrees to finance up to 90% of the costs associated with the listing process on

Nilex and to promote the benefits of joining the stock market to industrial companies.

Promotional Campaigns

EGX also continued its extensive promotional campaigns in 2009, conducting several road shows in New York, London and

Singapore, to highlight the Egyptian market key competitive advantages to both domestic and foreign investors, in particular

during the period of the crisis.

In its continuous efforts to ensure proper information dissemination and to enhance the disclosure and transparency in the

Egyptian market, EGX has re-launched its website in October 2009 providing the most recent market statistics with only 15

minutes delay, together with a wealth of information about EGX rules and regulations, member firms, up-to-date news, education

corner as well as information services, with a better navigation, more user-friendly interface and easier access to information.

Investor Education

Within the framework of its investor education and public awareness campaign, the EGX held its educational forum Borsa Step

X Step in for university students in six governorates during 2009. The forum was attended by more than 1000 students.

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International Relations & Recognitions

EGX is currently a Board member of the World Federation of Exchanges (WFE) and a founder member of the Union of Arab

Exchanges and is a member in the African Securities Exchanges Association (ASEA) and the Federation of Euro Asian Stock

Exchanges and an affiliate member of the International Organization of Securities Commissions (IOSCO).

EGX has signed several MOU’s in 2009 with Amman Stock Exchange, Libyan Stock Market, Iraqi Stock Exchange, Shenzhen

Stock Exchange and Casablanca Stock Exchange.

A number of structured products and ETFs were issued by several international institutions (ABN Amro, Deutsche Bank, Goldman

Sachs, BNP Paribas, Barclays Capital) on EGX 30 Index and DJ EGX Egypt Titans 20 Index, are currently listed and traded on

various European exchanges.

From another perspective, Van Eck Global launched the first ETF to track Egypt “Market Vectors Egypt Index ETF (EGPT)” in

February 2010 in New York.

Prospects Going Forward

EGX will be working on activating the bond market and the short selling, together with the introduction of sukuks.

Moreover, to further increase market depth and breadth, both short selling and market maker will be shortly introduced in the

market. EGX is also contemplating the issuance of the first ETF on its EGX30 Index. From another perspective, EGX is currently

working on setting up a Derivatives market, to be launched by early 2011.

EGX is also in the final stage to get connected to London Stock Exchange through EGX FIX Hub to enable large institutions in

London to access the Egyptian market directly, which helps increasing EGX liquidity.

Finally, the Exchange will continue its road shows to attract reputable domestic and foreign blue chips as well as prominent and

fast growing mid and small cap companies to the market.


Profile

Website wwe.gse.com.gh

Market Regulator Securities And Exchange Commission, Ghana

Address 5th & 6th Floor Cedi House, P.O. Box 1849, Accra

Trading Session hours (local time) 9.30a.m -1.00p.m

Time Zone GMT

Contact Person for ASEA Diana Okine/ Ekow Afedzie

Telephone 233 0302 669908/669914

Fax 233 0302 669913

E-mail [email protected]/[email protected]

Name of Local Currency Ghana Cedi (GHS)

Tax Rates (dividends, interest, capital gain) 8% Withholding tax on dividend, 0% tax on capital gains


Ghana Stock Exchange

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Total value traded (millions) 144.90 316.69 51.88

Total volume traded 287.22 545.79 96.77

Total number of transactions N/A N/A 16,793.00



Market Capitalization (billions) end of year 12.74 14 11.15


Turnover Ratio (%) * 1.14 2.1 0.0046




2007 2008 2009

Manufacturing 9 9 6

Finance & Insurance 9 11 11

Food & Beverage 3 3 3


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Distribution/Oil 4 4 5

Publishing & Printing 2 2 2

ICT 2 2 2

Mining 1 2 2

Agricultural 2 2 2

Pharmaceutical 2 2 2



# Sectors

1 Financials & Insurance

2 Manufacturing

3 Food & Beverages

4 Agriculture

5 Distribution/Oil



Bonds 2007 2008 2009

Total Value traded 2,769.56 0.17 12.08

Value traded on governmental bonds 1,374.29 2.81 12.08

Value traded on corporate bonds 20,000 0 1,000

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Please specify the Name of the Trading System used by the Stock Exchange - GSE Automated Trading System (GATS)


or bought? - Yes

If bought, who is the Vendor? - Infotech Global (Pte) Ltd





Separate Company - No



or bought? - Yes

If bought, who is the Vendor? - Infotech Global (Pte) Ltd


Clearing and Settlement is conducted in: T+ 2 - No T+ 3 - Yes

Others - T+1 & T+0


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Equity Market Yes

Cash Market

Derivative Market

Bond Market Yes

Table 7: Products

Product (Stocks, Bonds, Funds, ETF’s, Derivatives)


Stocks Commons Stocks, one Preference Shares, one depository shares

Bonds Dollar denominated Corporate bonds and government bonds


Margin Trading Yes


Online Trading Yes

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Table 8: Indices


GSE All Share Index Price Index


GSE All Share Index 10,431.64 5,572.34 -46.58


2008


Golden Star Resources Ltd 15-Feb-08 4.7

UT Financials Services Ltd 25-Nov-08 22.98

27.68

2009


None 0


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$ $ $

1 Databank Brokerage Ltd 14,044,646.00 19,134,614.00 33,179,259.00

2 IC Securities Ltd 9,328,210.40 2,601,240.80 11,929,451.00

3 African Alliance Securities (Gh)5018847.2 5,018,847.20 1,499,201.60 6,518,048.80

4 EDC Stockbrokers Ltd 2,923,987.10 2,814,983.60 5,738,970.70

5 New World Rennaissance Securities 1,800,777.70 1,937,810.50 3,738,588.20

***Please note that data is from March 27, 2009 when GSE automation went live

Member’s Contacts are available on the GSE websitewww.gse.com.gh

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Background of the Ghana Stock Exchange

The idea of establishing a Stock Exchange in Ghana became an issue for discussion for almost two decades under various

governments prior to its implementation. However, in February 1989, the matter of establishing a stock exchange was moved

into higher gear when a 10 member National Committee, under the Chairmanship of the then Governor of the Bank of Ghana,

was set up by the then PNDC Secretary for Finance and Economic Planning,

As a result of the work of the committee, the Stock Exchange was established in July 1989 as a private company limited by

guarantee under the Ghana Companies Code, 1963. It was given recognition as an authorized Stock Exchange under the Stock

Exchange Act of 1971 (Act 348) in October 1990. The Exchange was inaugurated on November 12, 1990 and trading commenced

on its floor the same day. The Exchange was officially launched on January 11. 1991 and became a public company limited by

guarantee in April 1994.

The GSE like stock markets globally and in Africa, have witnessed significant growth and development during the last two decades.

In the course of the growth, incentives and new policy initiatives in various forms were catalysts. Indeed, such incentives and

initiatives have now become a scorecard for competition to attract investments into various countries. It is even more intense

among the frontier or emerging markets including the African capital markets as Africa stock markets have emerged as major

providers of investment capital inflow.

The Exchange is governed by a Council of thirteen, representing Licensed Dealing Members, Listed Companies, Insurance

Companies, Banks, Money Market Institutions and the General public. The Council Membership includes some of the most

distinguished and competent persons in Ghanaian commerce, industry, finance and public service. The Council has all powers

and functions of a Board under the Companies Code. By virtue of the Stock Exchange Act 1971, such functions include preventing

frauds and malpractices, maintaining good order among members, regulating stock market business and granting listing and

publishing prices.

Ghana Stock Exchange


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Latest Achievements/Recent Performance

2009 was a particularly difficult year for the stock market and this was against the background of 2008 being one of the best

years of the market. The patch that the market went through in 2009 resulted from the effect of the global financial crisis which

began to be felt in the fourth quarter of 2008 and the fact that in 2009, the Exchange also effectively began migrating from paper

certification to electronic book entry securities under its new automated Trading System led to a slump in trade volumes and

values. The rise in local interest rate thus making money market instruments relatively more attractive was also a contributory

factor. The 2009 market performance was thus in sharp contrast with that of 2008. The value traded in 2009 was approximately

twenty percent of that for the previous year 2008.

With a drop of -46.58% in the GSE All-Share index, the Ghana Stock Exchange ended the year 2009 as the least performing

market in Africa. In the previous year 2008, the gain in the GSE All-share Index of 58% put Ghana ahead of most African

markets.

The market capitalization of the Exchange declined by 11% to end the year at GH¢15.94billion down from GH¢17.90billion in

2008. The decline in the value of Ghana’s market was mainly due to price depreciation.

There were no new bond listings in 2009. A total of eighty-six (86) listed government securities, made up of forty nine (49)

2-year, and thirty-seven (37) 3-year instruments were redeemed in the course of the year. HFC Series H “Housbonds” and

Standard Chartered Bank’s Medium Tern Notes (MTNs) were also redeemed in 2009.

Despite the difficult year the Exchange still crossed a watershed in 2009. The Automated Trading System (ATS) and the electronic

Clearing & Settlement System both went live to complement the Depository System which went live in November 2008. With

that move, all GSE operations became fully automated. Dealers now have access to trading from the Exchange’s Trading Floor;

the offices of Dealers; and through a secured internet facility at any location. Bi-lateral settlement between brokers ended with

the introduction of electronic Clearing and Settlement. Therefore trades are settled electronically on T+3 and the underlying

securities also credited to the Depository accounts of buying investors.

As stated earlier, the GSE Securities Depository Company became fully operational in November 2008. Through resolutions and

public education at the various AGMs, the Exchange’s listed companies have amended their company regulations not to issue

any paper share certificates. Indeed, under the automated environment, an investor (whether buying or selling) must have a

securities account in the Depository.

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GSE Future Outlook

The key issues for the Exchange into the future include:

1) Repositioning the GSE to improve the viability of the market place with the aim of making it the number one source for

raising capital via equities, bonds and other instruments. This includes discussions on future demutualization

2. Improving liquidity through more promotion and public education under the share immobilization programme and

through the increase of the public float and issued shares of existing listed companies.

3) The Depository is also completing an SMS Alert and Email notification system before the end of 2010. We therefore expect

to see new securities being listed as fully dematerialized.

4) Continue discussion with prospective listed companies (private and SOE) and encourage them to list.

5) The Exchange has also begun an advocacy for a capital market local content legislation that will make companies, based on

certain qualifying parameters, to offer up to twenty-five (25) percent of their issued shares to the investing public and to be

listed.

Ghana Stock Exchange’s Initiatives to Be More Responsive to the Needs of Investors and Listed Companies

Ghana Stock Exchange has taken advantage of technology to put systems in place to ensure that investors and listed companies

on the market have access to accurate, efficient and timely information to assist in their decisions-making process. It has

partnered with international data vendors such as Thomson Reuters and Bloomberg to disseminate real time market information

to local as well as international investors. The data which includes market depth is disseminated through a data feeder client

application. Real time price changes and volumes of shares traded are also published on the Exchange’s website.

The Exchange’s website allows investors and prospective companies to get their questions answered by chatting with a support

staff. This helps investors to enquire about issues on the market and get instant responses.

The Exchange has installed the GSE Investor Information Service (GIIS) which is still being tested. With this system, investors can

enjoy services such as viewing securities account information online; checking the performance of stocks over a user-defined


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period; receive email notification and/or SMS alert for transactions on their accounts; view financial data of listed securities an

investor has in his portfolio; view dividend history of listed companies which the investor holds in his portfolio as well as graphs

of performance of the securities on the market.

A disclosure portal for listed companies is being developed. This is a web portal that will allow listed companies to directly upload

information onto the Exchanges website. The information will then be reviewed for publishing on the website.

The automation of GSE’s processes has provided a straight-through-processing (STP) system, from the entry of clients’ orders to

cash and securities clearing and settlement. There is virtually no manual intervention in the processes. The traders are connected

to a parallel and distributed trading system called GATS via a wide area network and the internet. The brokers assess the system

remotely to submit their clients’ orders electronically on real time basis. To boost public interest in the trading activities on

the Exchange, the bids and offers as well as resultant trades are electronically displayed on electronic led display system and

electronic ticker outside the building of the Exchange for public view. These electronic display systems are directly connected to

the GATS system via the local area network. When orders are matched and trades executed, the results are transmitted online

real time to the clearing and settlement system for settlement while securities in respective accounts in the securities depository

system move to pending out state in the case of selling accounts but in the case of buying accounts the securities show a pending

in status.

The clearing and settlement system at the Exchange is a secured web application. The settlement obligation by each participant

is calculated real-time and accessible to their respective traders and brokers during and after the trading session. The clearing

house monitors the cash settlement accounts of all participants through a separate web application that interfaces the banking

application of the settlement bank. On settlement day (T+3) the clearing house electronically collects cash from paying participants

and pays receiving participants. To achieve delivery versus payment, during this process, the securities are released from their

previous states of pending ins and pending outs to available state in the respective client accounts.

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Profile

Website www.lsm.ly

Market Regulator Capital Markets Authority (Libya)

Address Tripoli international fair, Omar Mokhtar St. Tripoli, Libya

Trading Session hours (local time) 10:00 am until 12:00 pm


Contact Person for ASEA Husein Majdub

Telephone +218 21 336 5050

Fax 21821 336 5052


Name of Local Currency Libyan Dinar

Tax Rates (dividends, interest, capital gain) N/A


Libyan Stock Exchange


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Total value traded - 29,276,065.60 72,304,109.60

Total volume traded - 1,549,216.00 6,166,718.00

Total number of transactions - 5,264.00 5,935.00



Market Capitalization (billions) end of year 0 874780997.5 2654819771


Turnover Ratio (%) * 0 0.0277 0.01382





2007 2008 2009

Foreign Investors 1.03 0.67

Local Investors 98.7 99.5

Total %

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2007 2008 2009

Financial Sector 0.00 4 5

Insurance Sector 0.00 3 3

Investment Sector 0.00 0 1

Industrial Sector 0.00 0 0

0.00

Corporate Bonds


# Sectors

Jumhoria Bank Financial

Sahary Bank Financial

Wahda Bank Financial

Libyan Stock Market Investment

Commerce and Development Bank Financial


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Please specify the Name of the Trading System used by the Stock Exchange - Automated Trading System


or bought? -

If bought, who is the Vendor? - Nile Technology (Egypt)





Separate Company -



or bought? - Yes

If bought, who is the Vendor? - Nile Technology (Egypt)


Clearing and Settlement is conducted in: T+ 2 - T+ 3 - Yes

Others -

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Equity Market Yes

Cash Market

Derivative Market

Bond Market

Table 7: Products

Product (Stocks,Bonds, Funds,ETF’s,Derivatives) Description of the Product



Margin Trading


Online Trading


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Section Seven: Indices

Table 8: Indices


LYX Price index. The index returns are based on capital gains/losses of the 11 securities listed on the LSM, valued by full market capitalisation.


LSM All Share 1015.93 1,104.28 0.09


2008


Wahda Bank 25/02/2008 1.512

27/11/2008 1.750

2009


Jamhoria Bank 12/4/2009 5.7

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Ranking Equity Transactions Purchases Total

Stockbrokerage Units $ $

1 Jumhoria Bank 22,464,092.12

2 Sahary Bank 12,487,856.25

3 Wahda Bank 9,693,949.55

4 LSM 5,828,736.56

5 Commerce and Development Bank 5,657,051.63

Members’ Contacts are available on the website

www.lsm.ly


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The Libyan Stock Market Background

Established in March 2007, the LSM now hosts a total of 33 public companies – 11 of them actively traded – which increasingly reflect the largest sectors of the Libyan economy outside of energy. At the beginning the market composition was heavily biased in favour of financial sector companies, with banks and insurance attracting the largest share of investment flows.

There are 22 listed companies in the Sub-Table.

With recent listing of National Commerce Bank and imminent plans to float shares of the Libyan Iron and Steel Company (LISCO), as well as two leading telecoms operators, Libyana and Al Madar, in 2010 the Libyan capital markets are expected to acquire more depth and sector diversity.

The telecoms and industrial categories, both linked to highly profitable growth sectors, are set to attract domestic and for-eign investors, pushing up daily trading volumes and market capitalisation. According to the LSM’s January 2010 report total market capitalisation reached 3,570,354,832 Libyan Dinar, which at less than 5% of Libya’s total GDP highlights tremendous future growth potential.

Market capitalisation is set to expand fast in the next 24 months on the back of a strong demand for IPOs and second-tier com-panies gaining more visibility.

Latest Achievements

The Capital Market Law

• The Libyan Stock Market announced the release of a new Capital Market Law No. 11 of 2010, which will regulate the work of the Libyan Capital Market. This is the first time in the history of Libya such Law and regulations have been auc-tioned, allowing the benefits and exemptions to companies and organizations that deal with the capital market.

• The Libyan Stock Market now heads the Union of Arab Stock Exchange.

• The Libyan Stock Market is Officially a Correspondent to WFE ( World Federation of Exchanges ).

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• Electronic systems, like the trading system and ( Jupiter ) which is an internal system used to archive and exchange information between the employees, also we have the LSM Portal.

• The LSM has 12 Brokerage firms licensed to work in the Market.

• The LSM has two Main facilities, one in Tripoli and the other in Benghazi.

The Future Outlook

The next 18 months will mark a crucial stage in the development of Libya’s capital markets. As more companies come to the market, the stock exchange will become more diversified and liquid, with capitalisation levels expected to double in the next two years. Privatisation and wealth redistribution will remain among the driving forces behind new listings. However, the market is likely to attract greater interest from private companies seeking to raise capital. Foreign investor interest is likely to increase over this period as the regulatory environment becomes more open to capital inflows from outside the country.

The Libyan Stock Market initiatives to be more responsive to the need of the investors and listed companies.

• The LSM has an call center for the investors to call at any time, regarding information about the exchange or about their accounts.

• The LSM provides SMS service to investors and listed companies to ease the gathering of information or data.

• The web-site is really easy to use and there is a the investors education section which will help investors or to get a clear picture of the exchange and its regulations.

• The LSM also has the Investors Service, which is equal to customer service in any other company.


Lusaka Stock Exchange

Profile

Website www.luse.co.zm

Market Regulator Securities and Exchange Commission

Address 3rd Floor, Exchange Building, Central Park, P.O. Box 34523, Lusaka


Time Zone Greenwich Mean Time - 2 hours

Contact Person for ASEA Mrs Beatrice Nkanza

Telephone +260 211 228391

Fax +260 211 225969


Name of Local Currency Zambian Kwacha

Tax Rates (dividends, interest, capital gain) No tax on dividends for individuals, 15% tax - corporates, 15% on Interest

Commodities Exchange ZAMACE

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Total value traded (USD) 74,761,123.61 161,716,714.64 875,014,061.00







Turnover Ratio (%) * 1.55 3.00 1.45





2007 2008 2009

Foreign Investors 30.00 52.20 58.8

Local Investors 70.00 47.80 41.2

Total % 100.00 100.00 100.00


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2007 2008 2009

Institutions 71.00 68.00 81.00

Individuals 29.00 32.00 19.00

Total % 100.00 100.00 100.00



2007 2008 2009

Manufacturing 6 6 6

Mobile Telecommunications 0 1 1

Hospitality 1 1 1

Retail Trading 2 2 2

Oil Marketing 1 1 1

Agriculture Processing 2 2 2

Investments 2 2 2

Banking 2 3 3

Property 1 1 1

Mining 5 5 5

Energy 0 1 1

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# Sectors

1 Mobile Telecommunication

2 Agriculture

3 Energy

4 Manufacturing

5 Property



Bonds 2007 2008 2009

Total Value traded



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Please specify the Name of the Trading System used by the Stock Exchange - LUSE ATS


or bought? - Yes

If bought, who is the Vendor? - Millennium

Information

Technologies





Separate Company -



or bought? - Yes



Clearing and Settlement is conducted in: T+ 2 - T+ 3 - T+3 Others - 0

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Equity Market Yes

Cash Market

Derivative Market

Bond Market Yes

Table 7: Products





Margin Trading


Online Trading


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Table 8: Indices


LASI It is a weighted market capitalisation index. Its computed by dividing the overall market Cap by a base divider

Free Float Index It is a also weighted market capitalisation index. Its computed by dividing the market cap for freely transferrable shares by a base divider which excludes that portion not freely transferrable.


LuSE All Share Index (LASI)

3533.52 2,505.88 -29.08

Free Float Index 3403.98 2,391.39 -29.75

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2008


Celtel (Zain) 30/04/2008 203.24

ZANACO 29/09/2008 30.47

233.70

2008


Barclays Bank 76.17

Standard Chartered Bank 108.81

Bayport 43.53

2009



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Section Nine : 2009 Rankings of Top 5 Bond Trading Participants


$ $ $

1 STANBIC BANK NA NA 2,848,207.72

2 CITIBANK NA NA 2,731,918.60

3 NAPSA NA NA 2,731,918.60

4 BARCLAYS BANK NA NA 1,410,913.32

5 FNB 449,635.84

2009 Rankings of Top 5 Trading Participants

Ranking Equity Transactions Total1 Pangara Reinassence 26,238,802.512 Stockholders Zambia 16,714,163.053 Madison Abet Management 2,985,373.044 Intermarket Securities 1,559,845.54

Members’ Contacts are available on the LUSE website www.luse.co.zm

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Background

The Lusaka Stock Exchange (LuSE) was established with preparatory technical assistance from the International Finance Cor-poration (IFC) and the World Bank in 1993. The Exchange opened on 21st February 1994. In it’s first two years of operation the LuSE and Securities and Exchange Commission (SEC) were funded by the UNDP and Government of Zambia as a project on financial and capital market development in Zambia under the multi component private sector development programme. The LuSE is owned by stock broking corporate members and is incorporated as a non - profit limited Liability Company.

Role

The formation of the Exchange was part of the government’s economic reform programme aimed at developing the financial and capital market in order to support and enhance private sector initiative. The Lusaka Stock Exchange was also expected to attract foreign portfolio investment through recognition of Zambia and the region as an emerging capital market with poten-tially high investment returns. Another important role of the Exchange was to facilitate the divestiture of Government owner-ship in parastatals and realisation of the objectives of creating a broad and wide shareholding ownership by the citizenry via a fair and transparent process.

The Lusaka Stock Exchange was set up as a modern stock exchange based on the most current international standards and practices.

Latest Achievements

The Exchange admitted a new member broker. The number of brokers increased to 4 from 3 as at close of the year.

Zambia Bata Shoe Company PLC (“Bata” or “the Company”) applied for and was granted a listing on the listed tier of the Lu-saka Stock Exchange (“LuSE”) commencing on 31 March 2009 after being registered as a quoted company for some years.

Securities Concerned

Bata listed 350,538,000 ordinary shares of K2.00 par value on the LuSE. 86,439,279 shares have been deposited in the Central Shares Depository of the LuSE and 294,098,721 are in certificate form.


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Zambeef Products Plc- Diposal of Shareholding Interest in Nanga Farms Plc-

Zambeef Products PLC negotiated the disposal, for a consideration of K156,000,000,000.00 (one hundred and fifty six billion Kwacha), of all of its shares in Nanga Farms PLC (“Nanga”) to Illovo Sugar (Zambia) Limited, which equated to forty-one mil-lion seven hundred fifty-three thousand six hundred seventy-one (41,753,671) ordinary shares (constituting 85.73% of the total authorised and issued shares).

Zambia Sugar Plc Rights Offer

Zambia Sugar Plc had a rights offer on a one for six basis. The rights offer achieved the principal objectives for raising capital, which were to repay the bridging finance incurred to acquire majority control of Nanga Farms PLC as well as reduce the Com-pany’s indebtedness. In order to improve the trading liquidity of the Company’s shares on the LuSE, Illovo Sugar Limited, the majority shareholder in the Company, only partially subscribed for its share of the rights offer. As a consequence, Illovo Sugar Limited’s shareholding reduced from 89.9% to 81.5. The total number of shares in issue in Zambia Sugar PLC subsequently increased from 5,426,938,035 to 6,331,427,708 shares.

Future Outlook

The market anticipates to list a few more companies in the next 2 years. Some of the listed companies have shown keen interest to use the market to raise long term finance through equity and corporate bonds. Farmers House intends to raise US$ 15 mil-lion dollars through a rights issue. All documentation has been filed with the relevant authorities in readiness for the issue.

The Exchange is working on a project to link the settlement into the Central Bank’s Real Time Gross Settlement system. This will help the market achieve the DVP.

The Exchange in collaboration with the Central Bank and other stakeholders are working round the clock to deepen the bond secondary market.

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Initiatives

The LuSE is constantly conducting educational seminars to educate investors on the operations of the Stock Exchange. The LuSE also partners with other stakeholders such as the Zambia Development Agency in making presentations on the Role of the Exchange to SME’s and other investors. The Exchange has also produced a number of in-house publications outlining the operations of the market. The exchange also exhibits at various forums with a view of reaching out to the investors.

The exchange also interacts with the listed companies to guide them on issues of corporate guidance. The Listing rules help companies to adhere to their continuing listing obligations. The Exchange has also come up with a corporate governance award which is held every year to motivate the listed companies.


Mozambique Stock Exchange

Profile

Website www.bolsadevalores.co.mz

Market Regulator Central Bank

Address 5º floor, bloc 5, 25 de Setembro Avenue, Maputo - Mozambique

Trading Session hours (local time) 9:00 am to 12:00 pm


Contact Person for ASEA Mr Rodrigues Paruque

Telephone +258 21 308826

Fax +258 21 310559


Name of Local Currency Metical

Tax Rates (dividends, interest, capital gain) 10% for listed securities (50% tax benefits)


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Total value traded (USD) 3,538,290 9,540,123 8,577,296.89

Total volume traded 881,692 3,434,638 2,357,285.00

Total number of transactions 55 44 34.00





Turnover Ratio (%) * 1.16% 3.30% 2.59%




2007 2008 2009

Equities 1 1 2


Energy 0 0 1


Banks 2 2 4

Financial Sector Excluding Banks 1 1 1


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Construction and Materials 1 0 0

Energy 0 0 0


# Sectors

1 Telecommunications

2 Energy

3 Food & Beverages

4 Banks

5



Bonds 2007 2008 2009

Total Value traded 3,463,264 13,310,772 8,545,762

Value traded on governmental bonds 1,099 11,341,139 8,360,639

Value traded on corporate bonds 3,462,165 1,969,633 185,123

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Please specify the Name of the Trading System used by the Stock Exchange - BVM Trading System


or bought? - No







If Separate Company please mention its name - Central Bank


or bought? - No



Clearing and Settlement is conducted in: T+ 2 - T+ 3 - x

Others -


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SectionFive : Products traded on the Stock Exchange

Equity Market Yes

Cash Market

Derivative Market

Bond Market Yes

Table 7: Products


Stocks Common stocks as well as preferred socks issued by companies

Bonds Treasury bonds and corporate bonds

Commercial Paper It is a short term debt product with maturitie until 1 year

Participation Securities It is a debt security with fixed remuneration and also variable remuneration (depending on issuer profits). The amount of the issue is equivalent to the company equity.


Margin Trading N/A

Intraday Trading N/A

Online Trading Yes

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2008


CMH - Companhia Moçambicana de Hidrocarbonetos May-2008 6,500,000

6,500,000

2008


Government of Mozambique Sep-2008 14

mCel - Moçamibique Celular Oct-2008 10

2009


Government of Mozambique Sep-2008 10

10

Members’ Contacts are available on the bolsa de valores website www.bolsadevalores.co.mz


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Bolsa de valores Mozambique

Background

In 1998 the Government of Mozambique created the regulation of securities market. One year later Mozambique Stock Exchange

was incorporated and started its operations in October 1999.

The Mozambique Stock Exchange is a public institution under the guardianship of the Minister of Finance.

The Bank of Mozambique is the entity responsible for the supervision and surveillance in both, primary and secondary securities

market, and also to all market operators.

The Mozambique Stock Exchange is the management entity of the securities market endowed with necessary means to ensure

continuity in an open and free market, and also has competence to regulate operational matter.

The trading, clearing and settlement was always carried out by an electronic system. Firstly the stockbrokers were trading via a

local network system in the Stock Exchange. From 2000 was installed a remote trading network system with a direct access from

the stockbrokers to the trade sessions through the internet, without any need to be in the Stock Exchange.

Latest Achievements

The Stock developed an application software to manage IPO’s of securities. Through this software financial intermediaries can

insert, consult, modify and cancel exchange orders from their clients. This software also enables that the results of the IPO’s can

be sent from the stock exchange to each financial intermediary, including the information about settlement of the operation.

It was also introduced the System of Events Disclosure (SDE)to enable the public to check with Stock Exchange Bulletin, as well

as every market events released by issuers and the stock exchange. This new system is located in the Stock Exchange website:

www.bolsadevalores.co.mz.

For securities issuers it was developed a Service of Securities Holders Information (SIAE). This service aims to provide to issuers

information about owners of the outstanding securities and the transactions that take place in the stock exchange. The importance

of this service is enlarged because, at the moment, Mozambique does not have a central securities depository operating.

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Future Outlook

The introduction of a Central Depository Services (CDS) for all securities in Mozambique by 2011 is one of the major goals of

Mozambique Stock Exchange to 2011. The country has a lack of information in this matter, so the Government already approved

the decision appointing Mozambique Stock Exchange as the provider of CDS services. The process of establishing the CDS has

started in the current year.

The Mozambique Stock Exchange is working with the Central Bank in creating the conditions to enable the use of Treasury Bonds

as collateral in the Interbank Money Market operations. At the moment only Treasury Bills are used for this end.

The Stock Exchange also aims to assess with the Central Bank the possibility of listing and trading the treasury bills at the Stock

Exchange. The listing of this instrument would open a great opportunity of the singular and institutional investors to access to

this short term financial instrument.

The biggest insurance company in Mozambique, EMOSE is going to launch an IPO equivalent of 10% of the its equity by the end

of November 2010. EMOSE is a state owned company, and this will be the third time that government go through IPO of their

owned companies. This 10% of equity will be listed at the Mozambique Stock Exchange.


Profile

Website www.nse.co.ke

Market Regulator Capital Markets Authority (Kenya)

Address1st Floor, Nation Center, Kimathi Street, P O Box 43633 - 00100 Nairobi Kenya



Contact Person for ASEA Donald Atieno Ouma

Telephone +254 20 2831000

Fax +254 20 2224200


Name of Local Currency Kenya Shilling

Tax Rates (dividends, interest, capital gain)dividends 5% (domestic investors) 10% (foreign investors); interest 15%; capital gains suspended

Commodities Exchange


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Total value traded 1,417,019,644.96 1,254,969,671.30 503,357,970.88

Total volume traded 1,938,201,896.00 5,856,540,513.00 3,160,031,392

Total number of transactions 973,548.00 890,542.00 402,169





Turnover Ratio (%) * 10.41 11.42 4.59





2007 2008 2009



Total % 100% 100% 100%


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2007 2008 2009


Individuals 46.8 40.05 70.76

Total % 100% 100% 100%



2007 2008 2009

Main Investment Market Segment (MIMS) 46 48 47

Commercial and Services 11 12 12

Finance and Investment 13 15 15


Agricultural 4 4 3

Alternative Investment Market Segment 8 8 8


Preference shares 2 2 2

Government of Kenya Treasury Bonds 72 74 67


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# Sectors

1 Commercial and Services

2 Finance and Investment


4 Agricultural

5 Alternative Investment Market Segment (AIMS)



Bonds 2007 2008 2009

Total Value traded 1,357,229,219 1,227,160,350 1,459,316,275

Value traded on governmental bonds N/A N/A 1,452,362,305

Value traded on corporate bonds N/A N/A 6,953,970


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Please specify the Name of the Trading System used by the Stock Exchange - Automated Trading System (ATS)

Is this system locally developed

Or bought? - Yes


Year of implementing the system - 2006


Where do Clearing & Settlement take place? - Separate Company

If Separate Company please mention its name - Central Depository & Settlement Corporation Kenya Limited

Is this system locally developed or bought? - Yes




T+ 2

T+ 3

Others - T+5

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Equity Market YES

Cash Market

Derivative Market

Bond Market YES

Table 7: Products





Margin Trading


Online Trading


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Table 8: Indices


NSE 20 Share Index Price index. The index returns are based on capital gains/losses of the largest 20 securities listed on the NSE, valued by full market capitalisation.

NSE ALL Share Index (NASI) The NASI calculated using the base-weighted aggregate methodology also known as the market value weighted methodology, and encompasses all equities listed on the Nairobi Stock Exchange.


NSE 20 Share Index 3,521.18 3,247.44 -7.77

NSE All Share 73.37 71.64 -2.36

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Safaricom Ltd March 28 2008 787.25

Co-operative Bank of Kenya October 30 2008 87.6625

874.9125

2009


None 0


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2008


Mabati Rolling Mills Bond 27-Oct-08 29

Barclays Bank Bond 14-Jul-08 36

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Government of Kenya Infrastructure Bond-12 years 23-Feb-09 260

CFC Stanbic Bond-7 years 7-Jul-09 33

Shelter Afrique Bond 24-Aug-09 13

Kenya Electricity Generating Company bond -10 years 2-Nov-09 330

Safaricom bond- 3-Nov-09 158

Government of Kenya Infrastructure Bond-12 years 7-Dec-09 249

Government of Kenya treasury bonds( 2-15 years) N/A 583

1,626

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$ $ $

1 Kestrel Capital Ltd 107,600,425 78,316,738 2,452,086

2 African Alliance Kenya Ltd 74,798,772 62,457,896 1,810,296

3 Dyer & Blair Investment Bank 67,892,207 67,035,327 1,779,577

4 Standard Investment Bank 45,782,841 48,569,500 1,244,425

5 ApexAfrica Capital Ltd 40,113,037 49,182,147 1,177,726


$ $ $

1 Faida Investment Bank 401,791,744 408,188,473 809,980,216

2 Kestrel Capital Ltd 235,629,122 224,683,461 460,312,582

3 Sterling Investment Bank 122,182,801 139,394,619 261,577,420

4 African Alliance Kenya Ltd 78,636,376 74,609,074 153,245,450

5 Dyer & Blair Investment Bank 73,595,357 76,665,787 150,261,145

Members’ Contacts are available on the NSE website

www.nse.co.ke


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Background

On October 6, 2010, the market capitalization of the companies listed on the NSE was Kshs.1.19trillion (US$14.73billion), the

face value of Government of Kenya treasury bonds and corporate bonds listed on Fixed Income Market Segment of the NSE was

Kshs.5.21trillion (US$64.55billion). The Nairobi Stock Exchange (NSE) is the largest securities exchange in East and Central

Africa. It is also the oldest securities exchange in the region, having commenced operations in 1954. The company is limited by

guarantee, without a share capital and is incorporated in Kenya under the Companies Act. The company is currently the sole

securities exchange in Kenya, licensed by the Capital Markets Authority (Kenya) to provide a facility for the issue, purchase and

sale of securities in Kenya. As a self regulatory organization, the NSE is involved in the development and operation of an efficient

securities market. The NSE Board of Directors is constituted of eleven (11) directors. Two (2) represent listed companies, three

(3) represent institutions, five (5) represent the members of the NSE, the Chief Executive seats on the Board. The NSE has

commenced the process of demutualization.

On June 10, 2010, during the Budget Reading by the Kenya Minister for Finance, the Minister made the following pronouncements

regarding demutualization:-

1. The Capital Markets Act (Cap. 485A) would be amended to facilitate demutualization;

2. Sections 41 and 47 of the 2010 Finance Bill contain the amendments to be made to the Act;

3. On passage of the 2010 Finance Bill by the Kenya Parliament, the amendments to the CMA Act come into effect on January

1 2011.

The demutualization of the NSE will culminate with the listing of the Exchange (within 3 years), to allow the public to own

a stake. On the assent of the 2010 Finance Bill, the Exchange stands ready to make the necessary applications to effect its

demutualization. The NSE currently has seventeen (17) active members.

Latest Achievements

2009 was a challenging year for Kenya’s financial markets. The global financial crisis, the economic downturn, which precipitated

a sustained downturn in the market, resulted in a notable shift from equity to the relative safety of fixed income securities. Equity

turnover fell 60.87 percent from 2009’s record of Kshs. 97.52billion (US$1.39billion) to Kshs. 38.16billion (US$0.5billion).

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Corresponding deals dropped 54.82 percent to 402,169. Our analysis indicates that domestic investors avoided the equity market.

In 2009, the value of transactions by domestic investors was Kshs. 15.04billion (US$0.2billion); 39.42 percent of 2009 turnover.

Foreign investors also made net purchases of Kshs. 8.33billion (US$0.11billion). This contrasts sharply with 2008 figures, when

domestic investors accounted for Kshs. 58.37billion (US$0.77billion) (59.86% of turnover); and foreign investors’ contribution

resulted in a net outflow of Kshs. 8.19billion (US$0.11billion). 2009 showed the potential of our debt securities markets. In

2009, secondary bond market activity surpassed that of 2008 by 16.16 percent to reach Kshs. 110.176billion (US$1.45billion).

Corresponding bond deals were up 78.98 percent to 3,551. Besides the macroeconomic environment, there have been a number

of initiatives that have facilitated secondary market liquidity.

Innovations in Debt Securities Secondary Markets

On November 25, 2009, Government of Kenya treasury bonds commenced trading via the automated trading system. The Central

Bank of Kenya continues to perform the functions of the Registrar of National Debt. The settlement cycle for both corporate and

Government of Kenya treasury bonds is T+3 and on the premise of Delivery versus Payment (DVP). Debt securities are numbered

using International Securities Identification Number (ISIN) Codes. Automation has increased liquidity and reduced operational

risk. After automation, weekly corporate bond turnover increased 1,836.36 percent to Kshs. 75.76million (US$1.0million).

Government of Kenya bond turnover increased 29.51 percent to Kshs. 2.62billion (US$0.035billion). These figures indicate

the success of the automation of bond trading. Besides increasing liquidity and reducing operational risk, the Exchange sees

automation providing value through the more efficient dissemination of bond pricing and yield information from a centralized,

credible source – the Exchange ATS. The methodology for the compilation of the bond price list and yield curve was agreed by

the Market Leaders’ Forum. The Institute of Certified Public Accountants of Kenya has approved the use of the yield curve for

“mark to market” valuations. The Exchange made presentations to the Capital Markets Authority to levy transaction fees on

bond trading volumes, which will be split between the Trading Participants, the Exchange, the CDSC and the Authority. The

fees structure will come into effect once they have been gazetted by the Minister for Finance. We are currently working with the

Authority to license Authorized Securities Dealers (ASDs). ASDs are a category of Associate member that is restricted to dealing

in debt securities listed on the FISMS. We believe these initiatives will support the optimization and maintenance of the bond

trading platform, deepen liquidity and manage counterparty risk.


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The Future Outlook

In order to build on 2009 the Board of Directors of the Exchange approved the 2010 – 2014 Corporate Plan and Strategy

presented by Management. The five (5) strategic objectives for the period 2010 – 2014, to achieve the mission of the NSE have

been identified as follows:-

1. To transform from a mutual to corporate (M2C) entity.

2. To grow the existing business.

3. To diversify revenue streams - evolve into a full service securities exchange which provides trading, clearing and settlement

of equities, derivatives, interest rate products and other associated instruments.

4. To grow the brand – make the NSE brand the most valuable in the EAC securities industry.

5. To build the capacity of the organization – human capital and systems.

In anticipation of the new demands required of the Exchange as a demutualized entity, the Exchange concluded an internal

organizational restructuring process to streamline its operations. Effective May 1 2010, there are four (4) departments, run

by Heads of Department reporting to the Chief Executive – Operations and Technology; Finance and Strategy, Compliance

and Legal, and Market and Product Development. The new management team has commenced work on initiatives to grow the

existing business and diversify our revenue streams as part of our target to become a full service securities exchange which

provides trading, clearing and settlement of equities, derivatives, interest rate products and other associated instruments. We

expect business growth through new listings on existing market segements and revenue diversification through broadening our

product offering to target Small and Medium Enterprises (SMEs), and the introduction of futures and options. In anticipation of

meeting its objectives, the Exchange continues to invest in infrastructure. We are finalising the selection of a vendor to provide a

centralized solution for a broker backoffice, to be operated from the Exchange. All stakeholders are in agreement that a centralized,

standardized solution for the broker backoffice provides economies of scale, in terms of systems development, management

and maintaneance. It shall also enhance existing market survelliance functions of the Authority and the Exchange – a further

assuarnce of investor protections for our market. It also provides opportunities for further development of information products

and services. We expect the system to go live in the first quarter of 2011.

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In line with our objective to the most valuable brand in the EAC securities industry and to position Nairobi as the financial

services hub of the Eastern Africa region, we have applied to the World Federation of Exchanges (WFE) to upgrade our status

from correspondent to affiliate status. At the end of the current strategy period in 2014, we intend to be full members of the

WFE.

Nairobi Stock Exchange Initiatives to be more Responsive to the Needs of Investors and Listed Companies

The Exchange believes an informed investor is a fundamental plank for orderly and efficient markets. Our 2010 public education

objectives include informing the investing public on the correct and ideal process to follow when investing through the NSE,

creating awareness and instilling an investment culture in Kenyan youth and encouraging consumption and value addition of

NSE real time and historic information for decision making and research purposes.

The NSE 2010 Investment Challenge is an online simulation of live trading at the Nairobi Stock Exchange. It is an edutainment

initiative targeting Kenyan youth in universities and other tertiary learning institutions. It aims at inculcating a savings culture

amongst the youth and demystifying the stock market. This year through the Challenge, Exchange representatives were able

to visit 62 institutions of higher learning that included technical schools and universities in Kenya. We reached 5,463 students

during the participation mobilization drive. 1,126 registered for the Challenge. Our two (2) year goal is to have at any one time,

4,000 students participating in the Challenge from institutions of Higher learning registered within the East African Community,

open the competition to Investment Groups, and include an online bond trading module. The Exchange is also working to build

the capacity of our markets’ human capital.

The Securities Industry Training Institute (SITI) is a regional initiative that is funded by the International Finance Corporation

(IFC) through the Efficient Securities Markets Institutional Development (ESMID) Programme. The aim of SITI is to develop the

capacity of the market participants within the region to foster sustainable development of the stock markets. So far this year, the

Nairobi SITI Campus has delivered a course on bond trading. Other courses planned for 2010 include a Compliance Course for

Compliance Management of listed companies and potential issuers. We are also considering using the SITI to both license


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and administer annual exams to market intermediaries; ensuring that they keep abreast of developments in their profession; as

a condition of retaining their license. With a view to maximizing the value a listed company derives from listing, the Exchange

“Listed Companies Forum” is now in its second year.

The Exchange uses the Forum to hear from its listed companies how it can improve its service delivery and through topical issues,

highlight how its listed companies can derive more value from their listing. We also brief our listed companies on new market

developments and use the opportunity to provide clarifications. The Exchange has now extended the Forum to include potential

issuers.

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Stock Exchange of Mauritius Website www.stockexchangeofmauritius.com

Market Regulator Financial Services Commission

Address 4th Floor,One Cathedral Square 16, Jules Koenig Street Port-Louis ,Mauritius

Trading Session hours (local time) 9 a.m -1.30 p.m (Official and Development & Enterprise Markets) 9.30 a.m-11.30 a.m Debt Market


Contact Person for ASEA Mr Sunil Benimadhu,Chief Executive

Telephone +230 2129541

Fax +230 2088409


Name of Local Currency Mauritian Rupees

Tax Rates (dividends, interest, capital gain) No Tax on dividends, 15% tax on interests, No capital gains tax


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Section Two : Trading Statistics

Table 2: Trading Equity Statistics Currency: XAF







Market Capitalization end of year 7,772,729,738.23 4,527,725,893.03 6,361,946,043.00

Market Capitalization as % of GDP 96.50 56.00 75.70

Turnover Ratio (%) * 5.74 9.66 6.43

* Turnover Ratio (%)= value traded of listed stocks/market capitalization ** after excluding deals Table 3: Investors Type



2007 2008 2009



Total % 100% 100% 100%

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2007 2008 2009


Individuals 24.63 39.49 24.57

Total % 100% 100% 100%



2007 2008 2009

Banks, Insurance and other Finance 9 7 7

Commerce 11 11 11

Industry 19 19 19

Investments 24 24 24

Leisure & Hotels 9 8 8

Sugar 10 10 10

Transport 3 3 3

Foreign 1 1 1

Others 5 6 6

Corporate Bonds


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# Sectors

1 Investments

2 Banks, Insurance and other Finance

3 Leisure & Hotels

4 Commerce

5 Others

Section Three: Bonds Statistics


Bonds 2007 2008 2009

Total Value traded 3,729,499.35 150,506.00 3,057.26

Value traded on governmental bonds 3729499.351 150506 3057.261146

Value traded on corporate bonds - - -

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Section Four : Trading System

Please specify the Name of the Trading System used by the Stock Exchange - SEMATS

Is this system locally developed - N/A

or bought? - Yes

If bought, who is the Vendor? - Millenium Information

Technology (MIT)

Sril Lanka


Section Five : Clearing and Settlement




If Separate Company please mention its name - Central Depository and Settlement Company Ltd


or bought? - Yes

If bought, who is the Vendor? - Millenium Information Technology (MIT)

Year of implementing the system: - N/A

Clearing and Settlement is conducted in: T+ 2 - No

T+ 3 - Yes

Others - No


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Section Six : Products traded on the Stock Exchange

Equity Market Yes

Cash Market Yes

Derivative Market Yes

Bond Market Yes

Table 7: Products


Ordinary shares and preference shares All common stocks

Treasury bills Government bonds issued through the Primary Dealers System

Section Seven : Trading Mechanism

Margin Trading No


Online Trading Yes

* not activated yet

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Section Eight : Indices

Table 8: Indices


SEMDEX The SEMDEX is a capital-weighted price index which trades the price movements of all the shares listed on the Official Market.

SEMTRI The Total Return Index, the SEMTRI, was launched in October 2002. Besides capturing the price movements of listed stocks, common to the already published all-share index SEMDEX, the Total Return Index, SEMTRI, incorporates the added feature of providing investors, in general, and long-term investors like pensions funds, in particular, a good measurement of total return which combines both capital gains/losses on listed stocks and gross dividends obtained on these stocks since the inception of the local stock market on 5 July 1989. Gross dividends are assumed to be re-invested in the stocks underlying the capital index, SEMDEX.

SEM-7 The SEM-7 index was introduced in March 1998. Designed to meet international standards and provide an investible benchmark for domestic and foreign market participants, the SEM-7 comprises the seven largest eligible shares of the Official Market, measured in terms of market capitalisation, liquidity and investibility criteria.

DEMEX The DEMEX is a capital-weighted index which tracks the price weights of the shares listed on the DEM.

DEMTRI The DEMTRI is a total-return index for the DEM market.


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SEMDEX 1,182.74 1,660.87 40%

SEM-7 267.22 360.75 35%

Members’ Contacts are available on the SEM website

www.stockexchangeofmauritius.com

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Stock Exchange of Mauritius Ltd (SEM)

Background

The Stock Exchange of Mauritius Ltd (SEM) was established in 1989 under the Stock Exchange Act 1988, responsible for the

operation and promotion of an efficient and regulated securities market in Mauritius. The SEM is today a demutualised exchange

and is constituted as a public company.

Since its inception in 1989, SEM’s efforts have been geared towards ensuring that it remains at the forefront of institutional

reform and development while offering quality services to its stakeholders and contributing to the deepening and broadening of

the financial sector in Mauritius. Through the years, the SEM has developed into a regional reference and emerged as one of the

leading small Exchanges in Africa.

The Board of the SEM is the focal point of the corporate governance system and is ultimately accountable and responsible for

the performance and affairs of the Company. The Board of the SEM has delegated authority for the implementation of Board

decisions and day-to-day management of the SEM to the Chief Executive and the SEM Management Committee.

The SEM has made some important strides in its development process since 1989, and these achievements can only stimulate

us to mobilize our resources to focus on other ground-breaking initiatives that will fuel further growth of capital markets in

Mauritius, and enable us to better serve the local and foreign investment community.

Latest Achievements

The numerous initiatives implemented by SEM in recent years on the operational and technological fronts have enabled SEM

to emerge as one of the leading small Exchanges in Africa. During the first half of 2010, SEM realized a number of projects to

further modernise the Stock Exchange infrastructure and attract more investors to the market. A few of these key initiatives as

well as some future undertakings are highlighted below.


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Creation of a Derivatives Segment for the Trading, Clearing and Settlement of Futures

The Rules for the trading, clearing and settlement of Futures on the SEM have already been approved by the Regulator and the

SEM is focusing on the training of its stakeholders who will be trading on the Derivatives Segment. In this context, the SEM has

organised training courses conducted by the Exchange and the Central Depository & Settlement Company (CDS) and workshops

by a derivatives expert. The persons appointed by investment dealers to place orders or execute trades on the Derivatives Segment

have also participated in several mock runs organized by SEM and CDS.

The launching of Futures trading is subject to the market participants’ readiness to trade on the Derivatives Segment.

Listing of Global Funds

The recent changes to the Listing Rules since February 2010 have helped to position the SEM as an attractive venue for the

Listing of Global and Specialised Funds. The new Listing régime is based on rules that are flexible enough to cater for the

specific attributes of Global and Specialised Funds, including Professional Collective investment schemes, Specialized collective

investment schemes, Expert Funds, etc. The SEM has also a commitment to aggressive timings on the processing of listing

applications and has adopted a listing fee structure, which is very competitive compared to other jurisdictions like Dublin,

Luxemburg, Cayman Islands, etc. As at date, the securities of 9 mutual funds are listed on the Official Market of the SEM.

In our effort to position the SEM as an attractive Listing Venue for international funds, we have also sought recognition from the

UK authorities, namely by Her Majesty’s Revenue Authority, for tax purposes.

SEM’s Corporate Social Responsibility

Under its Corporate Social Responsibility activities, the SEM implemented in April, in close collaboration with an approved

NGO, the Craft Academy, a project « LEARN TO EARN » for Out-of –School Youth Course.

The main objective of the ‘Learn to Earn’ project is to encourage individual development of school drop-outs aged between 16

and 21 through a different form of learning by promoting and providing training in creative craft production, creative arts to help

them develop their creative skills and where the trainers of the Craft Academy which is the implementing agent have a major role

to play. At the end, these students will be at least employable or at most to set up small craft entrepreneurship.

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The project started on April 2010, which will be spread over two and a half years, composed of the three specific modules, which

are:

‘Out of school youth’ training programme.

‘Small craft specialists in progress’ training.

Craft entrepreneurship potentials’ training programme.

The beneficiaries are 15 young from pockets of poverty in the region of Belle-Mare situated in the East coast of the island. At the

completion of the course, the students will be provided a certificate by the Academy. Professional teachers in the field of Arts &

Crafts, Drama/Music and Literacy are delivering the course.

8. Future Outlook

Attract New Listings on the Stock Exchange

The SEM is currently working on a project to highlight the role of the stock exchange as a wealth creation platform, with a view to

attracting more domestic companies to seek a listing on the Exchange. A half-day seminar shall be organized during the second

semester to demonstrate how listing on the SEM has created value for listed companies during the last twenty-one years, via a

platform for (1) listed companies to raise long-term capital to finance their expansion; (2) the creation of shareholders’ wealth;

and (3) raising the companies’ profile and the enhancement of enterprise productivity.

An explanatory brochure describing the benefits of a listing on the Exchange shall also be launched on this occasion.

New website

SEM’s internet trading facilities, through I-Net on the SEM website, today already enable investors to follow both markets on

a real-time basis and act on a real-time basis. Through the I-Net service, an investor can now trade on both markets on-line,

through his broker, on the Stock Exchange of Mauritius. Through our website, investors are able to access I-Net, assess the

market situation and place order to their brokers.

The SEM is planning to redesign of its website by end of 2010, to provide additional features for the benefit of investors both

locally and internationally.


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Investor Education Campaign

The number of investors trading on our Exchange has increased in recent years. Some 54,000 investors holding nearly 234,000

securities accounts are registered with the CDS. These figures, though encouraging, indicate the growth potential that exists and

our target is to increase the number of registered investors to 100,000 in 2013, ensuring thereby that one in every two working

Mauritians is a shareholder of the listed scrips traded on the SEM. In this light, the Exchange will launch by end of 2010 , an

Investor Education campaign under the theme “Faire de Maurice une nation d’actionnaires: 100,000 actionnaires d’ici 2013”,

comprising amongst others, radio programmes, press interviews and newspaper adverts. The SEM will alsosoon launch monthly

in-house Investment Courses “Starting Shares the SEM Way” for the public at large.

211

Profile

Website www.use.or.ug

Market Regulator Capital Markets Authority (Uganda)

AddressWorkers H’se, 1 Pilkington Rd,Northern Wing,P.o Box 23552, Kampala,Uganda

Trading Session hours (local time) 10:00am - 12:00 noon


Contact Person for ASEA Harriet Kiwanuka

Telephone +256 414 342818

Fax +256 414 342841


Name of Local Currency uganda shilling

Tax Rates (dividends, interest, capital gain) 10% Dividends


Uganda Securities Exchange


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Turnover Ratio (%) * 14,215,010.72 14,926,935.58 2,767,488.28





2007 2008 2009

Foreign Investors N/A N/A N/A

Local Investors N/A N/A N/A

Total % N/A N/A N/A

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2007 2008 2009

Institutions N/A N/A N/A

Individuals N/A N/A N/A

Total % N/A N/A N/A

Please note that due to Uganda’s open capital account poilicy, there is no real aggregated of foregin vs. local tradng information.



2007 2008 2009

Main Investment Market Segment (MIMS) 9 10 11

Commercial and Services 2 2 2

Finance and Investment 4 5 6


Agricultural 0 0 0

Alternative Investment Market Segment 0 0 0


Preference shares 0 0 0

Government of Uganda Treasury Bonds 21 27 28



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# Sectors

1 Finance and Investment


3 Commercial and Services

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Please specify the Name of the Trading System used by the Stock Exchange - Manual continuous open outcry trading system Is this system locally developed - Yes

Or bought? - No


Year of implementing the system - N/A


Where do Clearing & Settlement take place? - The Stock Exchange

Separate Company


Is this system locally developed or bought? - Yes


Year of implementing the system: - February 2010


T+ 2

T+ 3

Others T+5


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Equity Market YES

Cash Market

Derivative Market

Bond Market YES

Table 7: Products

Product (Stocks, Bonds, Funds, ETF's, Derivatives) Description of the Product

Shares Common Shares



Margin Trading No

Intraday Trading No

Online Trading No

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Table 8: Indices


USE ALL Share Index (ALSI) The ALSI calculated using the base-weighted aggregate methodology also known as the market value weighted methodology, and encompasses all equities listed on the Uganda Securities Exchange.


USE All Share Index (ALSI) 991.12 779.25 -21.38

2009


Government of Uganda Treasury Bond-10 years 11-Nov-09 31,463,030.94

Government of Uganda Treasury Bond-5 years 17-Sep-09 47,194,546.41

Government of Uganda Treasury Bond-3 years 1-Apr-09 141,583,639.22

Government of Uganda Treasury Bond-2 years 12-Jan-09 104,876,769.80

PTA Bank Corporate Bond 3-Nov-09 20,975,353.96

Stanbic Bank Uganda Corporate Bond 18-Aug-09 15,731,515.47

Total 361,824,856


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Uganda Securities Exchange

Background

On October 11, 2010, the market capitalization of the companies listed on the USE was Ushs.11.5trillion (US$5.1billion), the face

value of Government of Uganda treasury bonds and corporate bonds listed on Fixed Income Market Segment of the USE was

Ushs.1.8trillion (US$811million). The Uganda Securities Exchange (USE) became operational in 1998. The company is limited

by guarantee, without a share capital and is incorporated in Uganda under the Companies Act. The company is currently the sole

securities exchange in Uganda, licensed by the Capital Markets Authority (Uganda) to provide a facility for the issue, purchase

and sale of securities in Uganda. As a self regulatory organization, the USE is involved in the development and operation of an

efficient securities market. The USE Governing Council is constituted of eleven (11) directors representing listed companies,

members of the USE, Investors and the Chief Executive sits on the Council. The USE currently has eight (8) active members.

Latest Achievements

2009 was a challenging year for Uganda’s financial markets. The global economic downturn, which precipitated a sustained

downturn in the market, resulted in a significant drop in equity turnover of 78% percent from the 2008 record of Ushs.

89.8billion (US$47.1million) to Ushs. 19.7billion (US$8.8million). Corresponding deals dropped 54.82 percent to 402,169. Our

analysis indicates that institutional investors avoided the equity market. Corresponding bond deals were up 78.98 percent to

3,551. Besides the macroeconomic environment, there have been a number of initiatives that have facilitated secondary market

liquidity. 2010, on the other hand has seen some improvement in the number of deals and market turnover. As at the end of

September 2010, turnover stood at about 13% above the level achieved for the whole of 2009.

Innovations in the Securities Market

On February 20 2009 the Parliament of Uganda passed the Securities and Central Depository Bill which allows for the recognition

of electronically held securities. The bill was assented to by the President in January 2010. Following the assent to the bill, the

USE commenced implementation of the Securities Central Depository (SCD). By May 2010 all counters had been immobilized

and ten (10) Securities Depository Agents appointed, comprising Broker/dealer firms, Custodians and the Settlement bank. By

June 2010 all equities were clearing and settling through the securities central depository. The settlement cycle for equities is

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T+5, T+3 for corporate bonds and T+1 for government bonds. Both Debt and Equity securities on the USE are numbered using

International Securities Identification Number (ISIN) Codes. USE is the National Numbering Agency for Uganda. Currently, the

USE issues both ISIN and CFI codes. While the depository has been automated, the trading platform operates using the open

outcry system. The plan to automate the trading platform is underway. It is anticipated that automation will improve the levels

of efficiency, increase liquidity and reduce operational risk. Besides increasing liquidity and reducing operational risk, the

Exchange sees automation providing value through more efficient dissemination of pricing information and securities related

data.

Public Awareness and Investor Education

The Exchange believes an informed investor is a fundamental pillar for orderly and efficient markets. Our 2010 public education

objectives have included sensitizing and informing the investing public on the correct process to follow when investing through

the USE, creating awareness and building an investment culture in Ugandans.

USE concentrated on sensitizing Ugandans about the securities central depository (SCD) system. Various educational programs

and campaigns were conducted across the country via various voice and print media. The purpose for this initiative was to

sensitize investors about the SCD and to provide them the assurances that holding their securities in electronic form was safer

than holding securities in certificate form. The educational campaign was supported by the Financial Markets Development

Program funded by the World Bank.

Capacity Building

In efforts to build industry knowledge and capacity within Uganda and across the East Africa region, USE steered the establishment

of the Securities Industry Training Institute (SITI) as a regional training institute for training and capacity building for market

participants and the public in securities and other related areas in finance. A comprehensive curriculum was developed through

funding obtained from the Efficient Securities Markets Institutional Development (ESMID) Programme under the International

Finance Corporation (IFC). The aim of SITI is to develop the capacity of the market participants within the region to foster

sustainable development of the stock markets. This year, the USE SITI Campus has trained approximately 150 participants

in four different modules. The institute is planning on developing additional modules and programs to add to the existing

curriculum.


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Policy and Market Development

Policy plays a crucial role in creating the enabling environment for capital markets development. USE participates in various

policy forums with Government, Private Sector Foundation, East African Community (EAC), etc. Under the EAC USE participates

in the Capital Markets, Pensions and Insurance Committee (CMPIC) of the EAC. Policy here is designed to harmonize regulation

across the region and working towards the integration of the EAC markets. The USE as Uganda’s stock exchange has an important

mandate to develop the capital markets in Uganda, which includes developing new products, building the investor base and

providing the platform to promote liquidity. In efforts to fulfil these mandates, USE established the BERI (Bonds, Equities and

Related Instruments) Forum which meets quarterly to discuss and deliberate on various topical issues affecting the financial

sector of Uganda.

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Profile

Website www.brvm.org

Market RegulatorConseil Regional de l’Epargne Publique et des Marchés Financiers (CREPMF)

Address Plateau, 18 av, Rue Joseph Anoma - 01 BP 3802 Abidjan 01

Trading Session hours (local time) 8:30 AM - 10:30 AM

Time Zone GMT

Contact Person for ASEA Jean-Paul GILLET - Managing Director

Telephone +225 20 32 66 85 / 86

Fax +225 20 32 66 84


Name of Local Currency XOF

Tax Rates (dividends, interest, capital gain) Dividends (10%), Interest (13%), Capital Gain (0%)


Bourse Régionale des Valeurs Mobilières


BR

VM

Section One : Trading StatisticsCurrency: XOF



Total value traded (1) 186,463,932 352,076,888 174,004,116






Market Capitalization as % of GDP

Turnover Ratio (%) * 1.95% 4.11% 2.35%


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2007 2008 2009

Foreign Investors NA NA NA

Local Investors NA NA NA

Total % NA NA NA

Insitutions Vs.Individuals

Institutions NA NA NA

Individuals NA NA NA

Total % NA NA NA


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VM



2007 2008 2009

Industry 14 14 13

Public utilities 3 3 4

Financial 6 6 6

Transportation 2 2 2

Agriculture 5 5 5

Distribution 7 7 7

Other sectors 1 1 1



# Sectors

1 Finance

2 Agriculture

3 Public Utility Sercive

4 Industry

5 Distribution

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Table 6: Bonds Statistics (XOF)

Bonds 2007 2008 2009

Total Value traded 22,594,603 46,750,697 33,177,014

Value traded on governmental bonds 10,729,720 23,919,558 8,727,856



Please specify the Name of the Trading System used by the Stock Exchange - Horizon


or bought? - No

If bought, who is the Vendor? - EFA Software Services Ltd






If Separate Company please mention its name - Depositaire Central / Banque De Reglement (Dc/Br)


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VM


or bought? - Yes

If bought, who is the Vendor? - CMA


Clearing and Settlement is conducted in: T+ 2 - No T+ 3 - Yes

Others - No


Types of markets in your Stock Exchange

Equity Market Yes

Cash Market Yes

Derivative Market

Bond Market Yes

Table 7: Products


Stocks Common shares


Rights A right gives a priority to existing shareholders to acquire any share shares offered

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Margin Trading


Online Trading


Table 8: Indeces


BRVM Composite The BRVM Composite is calculated using the base-weighted aggregate methodology and en-compasses all equities listed on the Bourse Régionale des Valeurs Mobilières

BRVM 10 The BRVM 10 is also calculated using the base-weighted aggregate methodology. It includes the 10 active and largest listed companies


BRVM Composite 199.45 178.17 -10.67%

BRVM 10 224.85 192.08 -14.57%


BR

VM

Section Eight : IPOs and Debt Securities (XOF)

2008

Company Date of IPO Value of IPO

0

2009


ONATEL 4/30/2009 68,000,000

2008

Company Date of issue Face Value of issue

TOGO TELECOM 11/6/2008 22,222,222

AFD 4/28/2008 44,444,444

SEMA 1/30/2008 11,111,111

2009

Company Date of issue Face Value of Issue

BOA Bénin 12/1/2009 13,333,333

BOA Burkina Faso 12/1/2009 6,666,667

BOA Côte d'Ivoire 12/1/2009 6,666,667

BOA Mali 12/1/2009 6,666,667

BOA Sénégal 12/1/2009 5,555,556

SHELTER AFRIQUE 3/16/2009 6,206,156

45,095,044

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$ $ $

1

2

3

4

5

Members’ Contacts are available on the BRVM websitewww.brvm.org


Profile

Website www.nsx.com.na

Market Regulator NAMFISA - Namibia Financial Institutions Supervisory Authority

Address 8 Kaiser Krone Centre, Post Street Mall, Windhoek

Trading Session hours (local time) 09h00 - 17h00 in summer and 08h00 to 16h00 in winter

Time Zone GMT+2 in summer & GMT+1 in winter

Contact Person for ASEA John Mandy

Telephone +264-61-227647

Fax +264-61-248 531


Name of Local Currency Namibia dollar

Tax Rates (dividends, interest, capital gain) Non-resident shareholders Tax @ 10% of dividends

Commodities Exchange n/a

The Namibian Stock Exchange

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Total value traded 1,536,696,020 1,085,488,757 1,081,685,126






Market Capitalization as % of GDP 2180% 1281% 1775%

Turnover Ratio (%) * 0.88% 1.37% 0.76%



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2007 2008 2009

Industrials Materials 1 1

Mining 2 2 2

Chemicals 1 1 1

General Industrials 0 1 1

Support Services 0 0 1

Beverages 1 1 1

Food Producers 3 1 1

General Retailers 4 2 2

Food and Drug Retailers 2 1 1

Banks 4 4 4

Nonlife Insurances 3 2 2

Life Assurance 3 3 3

Real Estate 2 2 2

General Finance 4 4 4

DevX 2 4 7

Bonds 19

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# Sectors

1 Banks

2 Life Assurance

3 Industrial Metals

4 General Industrials

5 General Retailers


Table 6: Bonds Statistics (USD)

Bonds 2007 2008 2009




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Please specify the Name of the Trading System used by the Stock Exchange - London SE - Talx via the JSE SETS


or bought? - Yes

If bought, who is the Vendor? - EFA Software London Stock Exchange






If Separate Company please mention its name - STRATE on dual listed companies


or bought? - Yes

If bought, who is the Vendor? - STRATE


Clearing and Settlement is conducted in: T+ 2 - No T+ 3 - No

Others - T+5

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Equity Market Yes

Cash Market

Derivative Market

Bond Market Yes

Table 7: Products

Product (Stocks, Bonds, Funds, ETF’s, Derivatives)


Equities "An instrument that signifies an ownership position, or equity, in a corporation, and represents a claim on its proportionate share in the corporation's assets and profits. Ordinary and preference shares"

Bonds Secondary trades in Government, State Owned Enterprise bonds and Corporate bonds


Margin Trading Yes


Online Trading


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Table 8: Indices


NSX Overall Index The NSX Overall Index is a price index based on the free float market capital value of all ordi-nary securities listed on the main board of the NSX which qualify as eligible for inclusion in the index.

NSX Local Index The NSX Local Index is a price index based on the free float market capital value of all the ordinary Namibian registered securities listed on the main board of the NSX which qualify as eligible for inclusion in the index.


NSX Overall Index 556.26 771.91 38.77

NSX Local Index 157.95 154.77 -2.01

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2009

Company Date of IPO Value of IPO ($)

BIDVest Namibia 26/10/2009 42,412,945

Members’ Contacts are available on the NSX website

www.nsx.com.na


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The Namibian Stock Exchange Background

Introduction

The NSX is an association of members, form in 1992 and licensed annually by the Namibia Financial Institutions Supervisory Authority (NAMFISA), in terms of the Stock Exchanges Control Act of 1985 and acts as a self-regulating organisation. As most of the services are outsourced the NSX operates with a small staff complement. Further due to the small Namibian economy and the legacy development by South Africa the majority of listed companies comprise South African holding companies of Namibian branches or subsidiaries.

Board of the Namibian Stock Exchange (“the Board”)

As at 31 December 2009, the non-executive Board consisted of 9 elected members, one-third of the elected Board members normally retire annually. The Board is elected in terms of the Constitution of the NSX which was gazetted on 15 October 2005 (Government Gazette No 3815) based upon their skills and experience and from seven prescribed sectors of the Financial Industry. The Chairman of the Board is elected by the Board members.

A representative of NAMFISA is invited to attend all the meetings of the Board and its committees.

The majority of the members of the Board are considered to be independent non-executive directors as some have interests that fall outside the definition of independent as set out in the King II Code and the NSX Listing Requirements and others have served for longer than defined as independent in the UK’s Combined Code. The Board has taken cognisance of the potential conflicts and has taken steps to mitigate any such conflicts. The Board believes that its composition and regular elections ensure that no one individual has undue influence in its deliberations and ultimate decisions.

Audit & Risk Committee

It is the responsibility of the Audit Committee to review the annual financial statements of the NSX and its subsidiaries and the Guarantee Fund, and to make appropriate recommendations regarding their approval to the Board

The Audit Committee has the responsibility to oversee the implementation of the risk management process following the workshop mentioned elsewhere.

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Listing Committee

The Listing Committee includes, among others, representatives of major accounting and legal firms in Namibia and during 2009 the meetings were chaired by a member of the Board. This Committee meets on an ad hoc basis to approve all listing applications for bonds and both primary and dual listed equities.

Initiatives to Deepen Markets

The NSX has accepted the challenge to look at our business practices and models on how our products or services reach the client. In October 2008 we prepared a strategic plan and detailed the 12 objectives in the previous 2008 Chairman’s report; in February 2010 we conducted an Enterprise Risk Management (ERM) review.

Selected highlights the NSX contributions to deepening the capital markets in Namibia in 2009 include:

• the primary listing of BIDVest Namibia Limited in October 2009 with a market capitalisation of N$ 1.5 billion;

• the approval of three medium term note programmes for the Standard Bank of Namibia Limited, Telecom Namibia and the Ohlthaver & List Group;

• the listing of bonds for Bank Windhoek and NamPower Corporation (this bond was issued in Namibia only);

• the dual listing of an Australian primary listed company Australian Metals (now known as Marenica Energy); and

• the dual listing of an Australian primary listed company Extract Resources Limited and its AIM listed associate Kalahari Minerals plc on DevX (Development Capital Board.

The NSX contributed to deepening the markets in the region by its participation on the dual primary listing of Trustco Group Holdings Limited on the Africa Board of the JSE and its participation in the Committee of SADC Stock Exchanges, whose objective of an integrated regional stock exchange is included in an annex to the Financial Investment Protocol recently ratified by the National Assembly.

As part of the ERM, the NSX interrogated the modalities of Regulation 28 to the Pension Fund Act (in terms of which each fund must invest 35% of its total fund in “Namibian” assets, with certain prescriptive minimums and prudential maximums) to determine how the implementation of the latest draft will affect the NSX and its members (brokers). In doing this analysis the


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dominance of the Government Institutions Pension Fund (GIPF), a government employees defined benefit fund, emerged as a significant risk to the trading on the NSX. The investment mandates granted by the GIPF to its appointed Asset Managers and their application of these mandates will reflect in the trading results of any particular year.

The NSX acknowledges that its success in building up reserves, in excess of N$ 22million over the past decade with a trebling in the last five years, has largely been due to this Regulation 28 and the Namibianisation process, driven by GIPF.

Future Outlook

These two factors are crucial to the further development of the NSX. In considering the demutualisation of the Exchange the largest uncertainties were the sustainability of the trading results of the NSX, in part due to the above mentioned points and the cost of providing for the state of the art technology and ensuring best practices governance.

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Profile

Website kse.com.sd

Market Regulator Ministry of Finance and National Economy

Address Sudan -Khartoum - Albaraka Tower Tenth Floor

Trading Session hours (local time) 10 am - 11 am

Time Zone GMT + 3 hours

Contact Person for ASEA Mohamed Abd Elfattah Mohamed

Telephone 00249 9 232 39 658

Fax 00249 83 782 152


Name of Local Currency Sudanese Pound


15% dividends

Commodities Exchange Under Process

Khartoum Stock Exchange


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Section One : Trading StatisticsCurrency: Sudanese Pounds



Total value traded 9,406,825,010 281,609,805 164,712,836






Market Capitalization as % of GDP 8.42 6.84 5.12

Turnover Ratio (%) * 7.2 5.1 2.7





2007 2008 2009



Total % 100% 100% 100%

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2007 2008 2009

Banking Sector 19 19 20

Commercial Sector 7 7 7

Industerial Sector 2 2 2

Insurance Sector 8 8 8

Agricultural Sector 3 3 3

Telecommunications & media Sector 5 5 5

Financial Services Sector 5 5 5

Other Sector 4 4 4

Mutual Funds Sector 19 28 34

Government Musharaka Certoficates (Shahama) 21 28 34

Corporate Bonds


# Sectors

1 Government Musharaka Certoficates (Shahama)

2 Mutual Funds Sector

3 Telecommunications & media Sector

4 Banking Sector

5 Industerial Sector


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Table 6: Bonds Statistics (Sudanese Pounds)

Sukuk 2007 2008 2009

Total Value traded 590,612,912.20 645,277,028.40 893,318,636.55

Value traded on governmental sukuk 526,402,845.70 588,640,397.20 819,757,492.80

Value traded on corporate sukuk 64,210,066.50 56,636,631.20 73,561,143.75

SectionThree : Trading System

Please specify the Name of the Trading System used by the Stock Exchange -


Or bought? -


Year of implementing the system - 1994

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Where do Clearing & Settlement take place? - The Stock Exchange



or bought? -


Year of implementing the system: -


T+ 2

T+ 3

Others - T+0


Equity Market YES

Cash Market

Derivative Market

Bond Market YES


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Table 7: Products


Shares Ordinary shares

Sukuk Islamic compliance corporate and governmental sukuk


Margin Trading


Online Trading


Table 8: Indices


Khartoum Index Price index


Khartoum Index 2,962.10 2745.85 2363.35

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Section Eight : IPOs and Debt Securities (Sudanese Pounds)

2008


Alrowad for real estate development April 13 2008 4,678,899.80

Family Bank May 26 2008 45,871,559.60

Alhyah Exchange Co. Ltd June 12 2008 504,587.20

Byblous Africa Bank August 24 2008 47,706,972.50

2009


Alandalous Company Jan-26 3,794,642.80

Sudanese Return for Development Co. Ltd Feb-01 5,256,696.40

The Worker International for Trade Jul-29 446,428.60

Mohanad Taj Exchange Nov-15 1,116,071.40


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Section Nine : 2009 Rankings of Top 5 Trading Participants (Sudanese Pounds)


1 Financial Investment Bank 367,284,123.20

2 Alrowad for Financial Services 241,305,603.60

3 The Index for Financial Investments Co. Ltd 194,187,551.50

4 Algawmia for Financial Dealings 176,861,613.40

5 Harvest for Financial Services 135,145,122.70

Members’ Contacts are available on the KSE website

kse.com.sd

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Khartoum Stock Exchange

Background

In 2009, the Khartoum Stock Exchange completed 15 years of existence. The Khartoum Stock Exchange has undergone several stages of transformation the most recent being the introduction of electronic trading.

Khartoum Stock Exchange activity during 2009 and 2010:

Trading on the Khartoum Stock Exchange reached a record of 2,246,552,029.30 pounds in 2009, a 19.5% increase from 1,879,185,954.92 pounds in 2008.. While 2009 turnover was the highest since the opening of the secondary market in 1995, The number of sukkuk traded during 2009 (7,646,614) instrument, which represents investment funds and securities of shahama (GMCs) reached 2,001,033,746.39 pounds equivalent to 89% of the total trading volume, which indicates that the year 2009 is also the year of the Islamic instruments. Despite the dramatic rise in trading volume, however, the number of shares traded during the year was 164,712,836, compared with 281,609,805 shares traded during the year 2008, a decline of 41.5%. For contracts executed during the year 2009 also declined from the previous year amounting to 8,069 contracts, compared to 8,569 contracts in 2008, a decrease of 5.8%. Mutual funds declined 15% to 4,228,900 in the number of sukkuk traded from 4,977,907 traded during the year 2008 compared. Government participation certificates (shahama) rose by 41.2% to 3,417,714 compared to 2,421,055 certificates marketed in 2008. In 2010, KSE acquired observer status with the Union of Arab Stock Exchanges and at the next meeting of the Union, expects to acquire full membership. In 2010 a Sudan Commodity Exchange (under way) was acquired observer status with the African Commodity Exchange Forum (ACEF). The KSE has signed contracts for the installation and operation of programs.

Khartoum Stock Exchange (KSE) Establishment

The idea of establishing a stock exchange in Sudan started in 1962 whereby many formalities such as studies and communications had been started by the Ministry of Finance and Bank of Sudan jointly with the International Finance Corporation. In 1982, the People’s Assembly endorsed the Stock Exchange Act of 1982 to regulate Stock Exchanges establishment in Sudan but no serious action was taken until 1992. In August 1992, in line with the economic liberalization policy called the Three Years Salvation Program (1990 - 1993), the Stock Exchange Board was constituted. In November of the same year the Council of Ministers amended the Stock Exchange Act of 1982, but the amended Act did not cover all the required necessary objectives to establish a Stock Exchange. In 1994 the Transitional National Assembly passed the Khartoum Stock Exchange Act, through which KSE acquired its independent legal status. On October 10, 1994, activity on the primary market commenced. On the 2nd of January 1995 the secondary market was completed and the market started dealing in the shares of the first listed companies.


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KSE Future Vision

To play a key role in the financial industry through the provision of quality services and innovative financial products, nurture professionalism and build industry credibility in the coming years through a comprehensive reform of the financial, administrative, technical and legal framework of the market in order to strengthen its role in economic development.

KSE Objectives

Khartoum Stock Exchange Act stated that the market has the following purposes: -

1. Regulate and control the issuance of securities and dealing in the same;

2. To encourage savings and investment awareness among citizens and create conditions for the recruitment of savings in the stock market, in order to benefit the citizen and the Sudanese economy;

3. Work to expand and strengthen the private ownership of productive assets in the national economy and the transfer of public ownership of capital assets of the State to the wider public;

4. Develop the market by organizing and monitoring securities issues and determine the disclosures to be met on the introduction of securities for public subscription;

5. Strengthen minority investor protections;

6. Propose how to implement monetary policy and manage capital movement, for the development of sources of medium and long term financing in Sudan in order to achieve financial and economic stability in Sudan and by extension the goals of economic development.

Milestones in the history of the Khartoum Stock Exchange (KSE)

1. In 1996 the number of listed companies increased from 34 to 40 companies;

2. In 1997 market capitalization of the listed companies went up from USD. 31 million to USD.139 million. To help in activating KSE, the same year saw the establishment of the Financial Investment Bank;

3. In 1999 the Parallel Market started its operation, as well as the classification of listed companies according to their adherence

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to conditions regulating the companies listed either on the regular market or the parallel market;

4. In 2001 a number of Investment Funds (Sukuk) and Government participation Certificates (Shahama) were issued and listed on KSE;

5. In 2002 a great expansion of KSE relations with regional and international financial markets took place;

6. In 2003 the Khartoum Index was launched, the KSE was listed in the Arab Monetary Fund (AMF) data base and the cross listing of Sudatel on the Abu Dhabi Securities Market took place;

7. In 2004 a joint cooperation protocol was signed between KSE and the Cairo and Alexandria Stock Exchange;

8. In 2005 trading volume increased to 1.21 Billion Sudanese pounds (Ginaih) and the Khartoum Index rose by 97.3%. Market capitalization rose 50.8% to 7.47 Billion Sudanese pounds (Ginaih). According to the AMF Data base, KSE ranked first in terms of growth in market capitalization, when compared with other Arabic Markets;

9. In 2006 trading volume increased 70% to 2.06 Billion Sudanese pounds (Ginaih);

10. In 2007 Khartoum Stock Exchange joined the African Markets Union;

11. In 2008, the Depository was completed to contain all the listed stocks in the Khartoum Stock Exchange, paving the way for the completion of the transformation to the electronic trading, expected to be completed by the end of 2010;

12. In the year 2009 market recorded Khartoum highest circulation since the establishment of a secondary market, with an increase in trading volume to (2.2) billion, compared with (1.8) billion in the last year, a rise of 19.5%;

13. The KSE has also been developing an action plan for market development , this plan consists of 12 main components as follows:-

1 Electronic trading, a contract has been signed under which the market will switch to an electronic trading system with (the first) company of Information Technology on February 11 2010;

2 The second is to find a permanent location for the market;

3 The supervision of the Khartoum Stock Exchange by the Central Bank of Sudan;

4 The revision of the Act and regulations of the Internal Market;

5 The review organizational structures of the market;


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6 The expansion of market activity to include the markets for commodities;

7 The establishment of the Capital Markets Authority;

8 Human Resources;

9 Governance;

10 Promoting the activity of the market locally and abroad;

11 Improving the working environment;

12 The establishment of brokers committee.

Report and Financial

Statements


Officers and Administration

Executive Committee

Mr. Sunil Benimadhu President Mauritian

Mr. Geoff Rothschild Vice President South African

Mr Ekow Afedzie Member Ghanaian

Mr. Peter Mwangi Member Kenyan

Mr. Simon Rutega Member Ugandan (Resigned 1 July 2010)

Mr Maged Shakwy Sourial Member Egyptian (Resigned 14 July 2010)

Dr. Mrs. Ndi Okereke-Onyuike Member Nigerian (Resigned 5 August 2010)

Dr. Khaled Seery Siam Member Egyptian (Appointed 15 July 2010)

Mr. Joseph S. Kitamirike Member Ugandan (Appointed 5 August 2010)

Ms. Yvonne Emordi Member Nigerian (Appointed 30 August 2010)

SecretaryMr. Peter Mwangi Appointed on 25 May 2010

1st floor, Nation centre

Kimathi Street

PO Box 43633

00100 Nairobi GPO

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Auditors

KPMG Kenya

16th Floor, Lonrho House

Standard Street

PO Box 40612

00100 Nairobi GPOPrincipal Place of Business & Registered Office

Nation Centre, 1st Floor

Kimathi Street

Nairobi

Bankers

Barclays Bank of Kenya Limited

Queensway House Business Centre

PO Box 30011

00100 Nairobi GPO


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REPORT OF THE EXECUTIVE COMMITTEEFOR THE YEAR ENDED 30 JUNE 2010

The Executive Committee has pleasure in submitting its report together with the audited financial statements for the year ended

30 June 2010 which disclose the state of affairs of the Association.

1. Primary objectives

The primary objectives of the Association as set out in the Articles and Memorandum of Association are as follows:

a) To establish an association for the systematic mutual cooperation, exchange of information, materials and persons, mutual

assistance and joint programs between members;

b) To assist members in the establishment of stock exchanges, the development of financial instruments and the promotion

of stock brokers and dealers;

c) To develop and establish standards of training and professionalism amongst stockbrokers and dealers and personnel

associated with members;

d) To develop and establish standards of listing, maintenance of listing, issuing, trading and settlement of securities;

e) To assist members in the promotion and development of self regulation to the greatest possible extent and assist members

in representations to national and international bodies in this regard;

f) To assist members in the promotion and development of the range of services associated with capital markets;

g) To promote and develop the establishment of a data bank and information system for the mutual benefit of members;

h) To study, research and investigate matters of interest to members; and

i) To disseminate information, produce materials in all media, hold conferences, seminars, exhibitions, and conduct other

public education activities relevant to the interest of members.

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j) To ensure that the views and interests of the Association are promoted in the appropriate worldwide for; and

k) To do all other things, not inconsistent with the foregoing as shall promote the objects and powers.

2. Results

The results of operations of the Association for the year are set out on page 7.

3. Executive Committee

The committee members who served the Association since 1 July 2009 are set out on page 1.

4. Auditors

The auditors, KPMG Kenya, have indicated their willingness to continue in office in accordance with Section 159(2) of the Kenyan

Companies Act (Cap.486).

5. Approval of financial statements

The financial statements were approved at a meeting of the Executive Committee held on

BY ORDER OF THE EXECUTIVE COMMITTEE

Secretary

Date:


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Statement of the Executive Committee’s Responsibilities

The Executive Committee are responsible for the preparation and presentation of the financial statements of African Securities

Exchanges Association set out on pages 7 to 16 which comprise the statement of financial position at 30 June 2010, the statement

of comprehensive income, statement of changes in fund balance and statement of cash flows for the year then ended, and a

summary of significant accounting policies and other explanatory notes.

The Executive Committee’s responsibility includes: determining that the basis of accounting described in Note 2 is an acceptable

basis for preparing and presenting the financial statements in the circumstances; designing, implementing and maintaining

internal control relevant to the preparation and presentation of these financial statements that are free from material misstatement,

whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are

reasonable in the circumstances.

Under the Kenyan Companies Act the Executive Committee is required to prepare financial statements for each financial year

which give a true and fair view of the state of affairs of the Association as at the end of the financial year and of the operating

results of the Association for that year. It also requires the said Executive Committee to ensure the Association keeps proper

accounting records which disclose with reasonable accuracy the financial position of the Association.

The Executive Committee members accept responsibility for the annual financial statements, which have been prepared using

appropriate accounting policies supported by reasonable and prudent judgements and estimates, in conformity with International

Financial Reporting Standards and in the manner required by the Kenyan Companies Act. The Executive Committee members

are of the opinion that the financial statements give a true and fair view of the state of the financial affairs of the Association and

of its operating results.

The Executive Committee members further accept responsibility for the maintenance of accounting records which may be relied

upon in the preparation of financial statements, as well as adequate systems of internal financial control.

The Executive Committee members have made an assessment of the Association’s ability to continue as a going concern and

have no reason to believe the Association will not be a going concern for at least the next twelve months from the date of this

statement.

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Approval of the financial statements

The financial statements, as indicated above, were approved by the Executive Committee and were signed on its behalf by:

__________________________________ __________________________________

President Vice President

__________________________________ __________________________________

Secretary Date


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Report of the Independent Auditors to the Members of African Securities Exchanges Association (A Company Limited By Guarantee)

We have audited the financial statements of African Securities Exchanges Association set out on pages 7 to 16 which comprise the

statement of financial position at 30 June 2010, the statement of comprehensive income, statement of changes in fund balance

and statement of cash flows for the year then ended, and a summary of significant accounting policies and other explanatory

notes.

Executive Committee responsibility for the financial statements

As stated on page 4, the Executive Committee members are responsible for the preparation and fair presentation of these

financial statements in accordance with International Financial Reporting Standards. This responsibility includes: designing,

implementing and maintaining internal control relevant to the preparation and fair presentation of financial statements that are

free from material misstatements, whether due to fraud or error; selecting and applying appropriate accounting policies; and

making accounting estimates that are reasonable in the circumstances.

Auditor’s responsibility

Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance

with International Standards on Auditing. Those standards require that we comply with relevant ethical requirements and plan

and perform the audit to obtain reasonable assurance whether the financial statements are free from material misstatement.

An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements.

The procedures selected depend on our judgement, including the assessment of the risks of material misstatement of the financial

statements, whether due to fraud or error. In making those risk assessments, we consider internal control relevant to the entity’s

preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the

circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also

includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates made by

management, as well as evaluating the overall presentation of the financial statements.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

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Opinion

In our opinion, the financial statements give a true and fair view of the financial position of the Association at 30 June 2010, and

its financial performance and cash flows for the year then ended in accordance with International Financial Reporting Standards

and the Kenyan Companies Act.

Report on other legal requirements

As required by the Kenyan Companies Act we report to you, based on our audit, that:

(i) We have obtained all the information and explanations, which to the best of our knowledge and belief were

necessary for the purpose of our audit.

(ii) In our opinion, proper books of account have been kept by the company, so far as appears from our

examination of those books; and

(iii) The statement of financial position and statement of comprehensive income are in agreement with the books

of account.

Date:


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Statement of Comprehensive Income for the Year Ended 30 June 2010

2010 2009 Notes US$ US$

Income Subscriptions from members 9,750 10, 000

Interest income 230 1,803

Other income 4 17,006 66

26,986 11,869Administrative expenses

Postage 129 195

Audit fees - Current year 3,953 3,570

- Prior year under provision 23 574

Bank charges 362 344

Professional fees 40 9

Provision for tax penalties 122 130

Impairment loss - 500

4,629 5,322

Surplus from operations 22,357 6,547

Taxation 6 (7,494) (541)

Surplus for the year 14,863 6,006

The notes set out on pages 11 to 16 form an integral part of these financial statements.

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Statement of Financial Position as at 30 June 2010

2010 2009

Notes US$ US$

ASSETS

Current assets

Debtors 7 4,197 3,166

Tax receivable - 230

Bank balances 113,558 88,071

TOTAL ASSETS 117,755 91,467

FUND BALANCE AND LIABILITIES

Fund balance (Page 10) 99,027 84,164

Current liabilities

Creditors 8 11,499 7,303

Tax payable 7,229 -

18,728 7,303

TOTAL FUND BALANCE AND LIABILITIES 117,755 91,467

The financial statements on pages 7 to 16 were approved by the Executive Committee on

and were signed on its behalf by:

President_________________ Vice President____________________



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Statement of Cash Flows for the Year Ended 30 June 2010

2010 2009 US$ US$

Operating surplus before tax 22,357 6,547

Less: Interest income ( 230) (1,803)

22,127 4,744

Income taxes paid (35) ( 270)

Operating surplus before working capital changes 22,092 4,474

Decrease in debtors ( 1,031) (1,429)

Decrease in creditors 4,196 384

Net cash flow (used in)/from operating activities 25,257 3,429

INVESTING ACTITIVIES

Interest received 230 1,803

Cash flow from investing activities 230 1,803

Net movement in cash and cash equivalent 25,487 5,231

Cash and bank balances at beginning of the year 88,071 82,840

Cash and bank balances at end of year 113,558 88,071


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Statement of Changes in Fund Balance for the Year Ended 30 June 2010

US$

Balance as at 1 July 2008 78,158

Surplus for the year 6,006

Balance as at 30 June 2009 84,164

Surplus for the year 14,863

Balance as at 30 June 2010 99,027



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Notes to The Financial Statementsfor the Year Ended 30 June 2010

1. Reporting Entity

African Securities Exchange Association (“ASEA”) is incorporated in Kenya under the Kenya Companies Act as a company

limited by guarantee and is domiciled in Kenya. The address of its registered office is as follows:

Nation Centre, 1 Floor

Kimathi Street

Nairobi

ASEA aims at providing a formal framework for the cooperation of stock exchanges in the African region. The membership of

the association is open to any stock exchange in the African region. As at 30 June 2010 the association had 19 members.

2. Summary of Significant Accounting Policies

The principal accounting policies adopted in the preparation of these financial statements are set out below.

These policies have been consistently applied to all years presented, unless otherwise stated.

(a) Basis of preparation

(i) Statement of compliance

The financial statements are prepared in compliance with International Financial Reporting Standards (IFRS).

(ii) Basis of measurement

The measurement basis applied is the historical cost basis, except where otherwise stated in the accounting policies

below.

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(iii) Functional and presentation currency

The financial statements are presented in United States dollars (US$) which is the Association’s functional currency.

(iv) Use of estimates and judgement

The preparation of financial statements in conformity with IFRS requires the use of estimates and assumptions. It also

requires management to exercise its judgement in the process of applying the Association’s accounting policies. The

assumptions are based on the Executive Committee’s best knowledge of current events, actions, historical experience

and various other factors that are believed to be reasonable under the circumstances, the results of which for the basis of

making the judgements about the carrying values of assets and liabilities are not readily apparent from other sources.

(v) Changes in accounting policies

The Association applies revised IAS 1 Presentation of Financial Statements (2007), which became effective as of 1 January

2009. As a result, the Association presents in the statement of changes in fund balance all owner changes in fund balance,

whereas all non-owner changes in fund balance are presented in the statement of comprehensive income.

A number of new standards, amendments to standards and interpretations are not yet effective for the year ended 30 June

2010, and have not been applied in preparing these financial statements:

IAS 24 Related Party Disclosures amends the definition of a related party and modifies certain related party disclosure

requirements for government related entities. The amendment to IAS 24 will become mandatory for the Associations’

2011 financial statements and are expected to have an impact on the presentation of related party information in the

Association’s financial statements.

IFRS 9 Financial Instruments retains but simplifies the mixed measurement model and establishes two primary

measurement categories for financial assets: amortised costs and fair value. The basis for classification depends on the

entity’s business model and the contractual cash flow characteristics of the financial asset. The guidance in IAS 39 on

impairment of financial assets and hedge accounting continues to apply. IFRS 9 will become mandatory for the Associate’s

2014 financial statements and is not expected to have a significant effect on the financial statements.


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The Executive Committee has assessed the relevance of the new standards and interpretations, and amendments to

existing standards with respect to the Association’s operations and concluded that they will not have any impact on the

Association’s financial statements.

b) Revenue

Revenue is accounted for on accrual basis.

Subscriptions represent annual subscriptions receivable from the various stock exchanges that are members of the

Association.

c) Taxation

For tax purposes the Association’s gross income is deemed to be taxable income. However, where more than 75% of the

gross income is earned from members’ subscriptions, then the gross subscription income is not subject to tax. Investment

income is however subject to taxation unless the Association is granted exemption by the Kenyan Minister for Finance.

d) Cash and cash equivalents

For the purposes of the cash flow statement, cash and cash equivalents comprise bank balances held with the bank.

e) Debtors

Debtors are stated at their nominal values less write downs for any amounts considered to be unrecoverable.

f) Creditors

Creditors are recognised when the Association has a present legal or constructive obligation as a result of past events and it

is probable that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable

estimate of the amount of the obligation can be made.

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3. Financial Risk Management Objectives and Policies

Overview

The Association has exposure to the following risks from its use of financial instruments:

• credit risk;

• liquidity risk;

• market risk.

This note presents information about the Association’s exposure to each of the above risks, the Association’s objectives,

policies and processes for measuring and managing risk, and the Association’s management of capital. Further quantitative

disclosures are included throughout these financial statements.

The Executive Committee has overall responsibility for the establishment and oversight of the Association’s risk

The Association’s risk management policies are established to identify and analyse the risks faced by the Association, to set

appropriate risk limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems

are reviewed regularly to reflect changes in market conditions and the Association’s activities.

Credit risk

Credit risk is the risk of financial loss to the Association if a subscribed member or counterparty to a financial instrument fails

to meet its contractual obligations, and arises principally from the Association’s receivables from members’ subscriptions

and investment securities.

Trade and other receivables

The Association’s exposure to credit risk is influenced mainly by the individual characteristics of each member. The

demographics of the Association’s members base, including the default risk of the country in which member operate.

Geographically there is no concentration of credit risk.


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Investments

The Association limits its exposure to credit risk by only investing in liquid securities. Our investment is in the fixed

deposits with Barclays Bank of Kenya.

The carrying amount of financial assets represents the maximum credit exposure. The maximum exposure to credit risk at

the reporting date was:

Carrying amount

2010 2009

US$ US$

Trade debtors 3,500 2,000

Cash and cash equivalents 113,558 88,071

117,058 90,071

The aging of trade debtors at the reporting date was:

Gross Impairment Net Gross Impairment Net

2010 2010 2010 2009 2009 2009

US$ US$ US$ US$ US$ US$

Current 2,500 - 2,500 2,000 - 2,000

1-2 years 1,000 - 1,000 500 ( 500 ) -

Over 2 years - - - - - -

3,500 - 3,500 2,500 ( 500 ) 2,000

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The movement in the allowance for impairment in respect of trade debtors during the year was as follows:

2010 2009

US$ US$

Balance at 1 July 2,000 1,500

Impairment loss recognised - 500

Impairment loss reversed (2,000) -

Balance at 30 June - 2,000

During the year the Association did not renegotiate the terms of a trade debtor from any long-standing debtors.

Liquidity risk

Liquidity risk is the risk that the Association will not be able to meet its financial obligations as they fall due. The

Association’s approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to

meet its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking

damage to the Association’s reputation.

The Association ensures that it has sufficient cash on demand to meet expected operational expenses, including the

servicing of financial obligations; this excludes the potential impact of extreme circumstances that cannot reasonably be

predicted, such as natural disasters.

The Association has no credit facility arrangement with any institution as at 30 June 2010.

The following are the contractual maturities of financial liabilities, including interest payments and excluding the impact

of netting agreements:


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30 June 2010

Carrying I year Over

In US$ amount or less 1-2 years 2-3 years 3 years

Creditors 11,499 11,499 - - -

30 June 2009

Creditors 7,303 7,303 - - -

Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity prices

will affect the Association’s income or the value of its holdings of financial instruments. The objective of market risk

management is to manage and control market risk exposures within acceptable parameters, while optimising the return

on risk.

Currency risk

The Association is exposed to currency risk on purchases that are denominated in a currency other than the US$ currency,

primarily the Kenya Shilling. The Association does not have any significant currency risk exposures.

Interest rate risk

The Association’s operations are subject to the risk of interest rate fluctuations to the extent that interest earning assets

and interest bearing liabilities mature or reprice at different times or in differing amounts. Risk management activities

are aimed at optimizing net interest income, given market interest rates levels consistent with the Association’s business

strategies. The Association does not have any significant interest rate risk exposures.

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2010 2009

US$ US$

4. Other Income

Conference income 15,000 -

Impairment loss reversed (Note 3) 2,000 -

Foreign exchange gains 6 66

17,006 66

5. Staff Costs

The Association did not incur any staff costs in the year.

Average number of people engaged in the year – Nil (2009 – Nil).

6. Income Tax Expense

2010 2009

Reconciliation of statutory and effective tax rate: US$ US$

Surplus before income tax 22,357 6,547

Tax calculated at the statutory income tax rate of 30% 6,707 1,964

Tax effect of:

Non taxable income ( 602) (3,020)

Non deductible expenses 1,389 1,597


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Total charge to statement of comprehensive income 7,494 541

In the year, subscriptions income from members formed less than 75% of the gross income and therefore is subject to

taxation under the Income Tax Act.

7. Debtors

2010 2009

US$ US$

Trade debtors 3,500 2,500

Impairment provisions - ( 500)

Net trade debtors 3,500 2,000

Other debtors 697 1,166

4,197 3,166

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8. CREDITORS

2010 2009

US$ US$

Audit fees 3,953 3,570

NSE payables 128 162

Prepaid membership 3,725 -

Provision for tax penalties 3,693 3,571

11,499 7,303

9. Members Liability

The members’ liability is limited by guarantee at KShs 10,000 per member. The number of members as at 30 June 2010

was 19 (2009 – 20).

Documents

ASEA - African Securities Exchanges Association · He is the immediate past Vice President of the African Securities Exchanges Association (ASEA) and currently a member of the Executive