Building African Financial Markets (BAFM) Forum 2026 Day 1 Highlights: Phase II of the African Exchange Linkage Project (AELP) Launched, Youth Identified as Africa’s Next Major Investor Class

On the 1st to 2nd July 2026, the Dar es Salaam Stock Exchange (DSE) is celebrating its 30th anniversary by hosting the 13th Edition of the Building African Financial Markets (BAFM) Forum in Dar es Salaam.

The forum is an annual event organized by the African Securities Exchanges Association (ASEA) and hosted by an appointed country to discuss the African and global capital markets.

This 13^th edition brings together stakeholders from stock exchanges, regulators, financial institutions, and international capital market experts to discuss strategies to accelerate capital market development, increase cross-border investment, and improve access to finance across the continent.

The first day of the forum focused on strengthening Africa’s financial markets through regulatory harmonization, technological innovation, digital investment platforms, Exchange-Traded Funds (ETFs), alternative financing instruments, and greater retail investor participation.

Discussions highlighted various Sukuk (Islamic bond) issuances over the past five years, demonstrating growing investor confidence in Islamic capital market instruments and alternative financing mechanisms for development projects.

Alternative finance emerged as one of the key topics of the day, with Tanzania presenting its progress in Sukuk financing following the introduction of the Alternative Project Finance policy in 2021.

Participants noted that alternative finance provides governments and companies with additional funding options, reduces reliance on conventional borrowing, and broadens investment opportunities within domestic capital markets.

Regional market leaders also shared strong performances recorded across their respective exchanges, with the Ghana Stock Exchange recording strong growth in market capitalization and trading activity while ending a seven-year initial public offering drought through three IPOs during the first half of 2026.

Nigeria also highlighted continued market expansion driven by technology adoption, improved settlement systems and increased investor participation, while Namibia shared its experience in developing exchange-traded funds and encouraged the establishment of a Pan-African ETF to facilitate regional investment.

Another major focus was the role of ETFs in attracting global capital into African markets.

Speakers observed that trillions of dollars are invested globally through index-based investment products and ETFs, presenting Africa with an opportunity to attract international institutional and retail investors by improving market infrastructure, increasing index inclusion, and developing investable financial products.

The forum also discussed how inclusion in major global indices could significantly increase foreign capital inflows into African markets while improving liquidity and visibility among international investors.

Issues around technology and financial innovation were discussed as participants emphasized that Africa’s large youth population, growing mobile phone penetration, and more than 600 million mobile money users present an opportunity to expand retail investment and financial inclusion by leveraging digital platforms and artificial intelligence.

The forum further identified fragmented regulatory frameworks as one of the main barriers limiting cross-border investment within Africa.

Participants called for greater collaboration among capital market regulators, central banks, and tax authorities to harmonize regulations and facilitate seamless movement of capital across African markets.

One of the major highlights of the day was the launch of Phase II of the African Exchange Linkage Project (AELP) by the African Securities Exchanges Association (ASEA) which expands the platform to include Botswana, Ghana, Eswatini and Uganda.

The project is a joint initiative by the ASEA and the African Development Bank (AfDB) to integrate African stock exchanges and facilitate seamless cross-border trading, aiming to improve market liquidity, expand investment opportunities and establish a fully integrated African capital market by 2030.

The expansion increases the network from 7 to 11 African stock exchanges and more than 50 participating stockbrokers, allowing investors to trade securities across participating exchanges through a common platform.

Speaking at the event, the CEO of DSE, Peter Nalitolela, highlighted that Africa is approaching a critical stage in the development of its financial markets, supported by favourable demographics and rapid technological advancement.

He noted that: “60% or roughly about 1 billion of the population of the continent is below the age of 25, which, combined with cheaper mobile access, creates a massive new investor class.”

In his keynote speech, the Governor of the Bank of Tanzania, Emmanuel Tutuba, said Tanzania’s strong macroeconomic fundamentals continue to provide a solid foundation for capital market growth.

Tutuba noted: “The appetite for local securities is immense; last week, a 25-year government bond seeking 260 billion TZS was oversubscribed to 1.5 trillion TZS, proving that even rural citizens hold significant investable funds.”

He said the country’s economy expanded by 5.9% in 2025 and is projected to grow by 6.3% in 2026, while inflation remained stable at 3.3% and non-performing loans declined to 2.9% as of March 2026.

Tutuba also noted that private sector credit grew by 24%, demonstrating strong confidence in the economy.

He noted that although Africa accounts for nearly 20% of the world’s population, it contributes only around 3% of global GDP, highlighting the need to mobilize domestic savings into productive investments.

On his part, the Senior Advisor to the World Federation of Exchanges (WFE), William Speth, said Africa is well-positioned to become one of the world’s most attractive investment destinations over the coming decade.

He noted that the rapid expansion of global index investing and ETFs presents African markets with an opportunity to attract substantial international capital if exchanges continue implementing reforms, improving transparency and developing investable market indices.

The CEO of WFE, Nandini Sukumar, added that exchanges have evolved beyond trading platforms to become a strategic national infrastructure that determines countries’ ability to attract investment.

Sukumar noted: “We have identified tokenization, crypto assets, and market design as our top six critical priorities for 2026, and Africa has a remarkable opportunity because you are not coming from legacy infrastructure.”

She noted that global IPO activity has declined by 22% over the past five years, while African SME markets still account for only 0.15% of global capital raised. Africa nevertheless has a unique opportunity to leapfrog traditional market infrastructure through digital technologies, and emphasized that progressive regulatory reforms remain critical for increasing listings and improving market liquidity.

On his part, the Executive Chairman of Yusra Sukuk Company, Sheikh Mohamed Issa, said Tanzania has made significant progress in developing alternative finance since the introduction of supportive government policies in 2021.

Sheikh Mohamed Issa noted; “The wonder bank also speaks about capital markets acting as an engine for alternative finance by providing structures for raising capital outside your traditional bank loans. And by utilizing such mechanisms like public and private placements, venture capital, and digital platforms, the capital markets instruments allow entities, whether public or private, in need of financing to directly access investors.”

He said the country has raised approximately USD 260 million through Sukuk issuances, describing alternative finance as a strategic financing tool that helps reduce dependence on traditional borrowing while avoiding increases in public debt-to-GDP ratios.

In his speech, the President of ASEA, Pierre Celestin Rwabukumba, said the expansion of the African Exchange Linkage Project demonstrates the growing commitment of African exchanges to regional market integration.

He said the project has already demonstrated its value by facilitating cross-border participation in major public offerings and is expected to contribute towards the development of a fully integrated continental capital market by 2030.

Rwabukumba noted: “We have 1.5 billion people in Africa but only under 1% of those are accessing our markets…we need to link up those ‘Dangotes’ with the demand side.”

On his part, the CEO of Tanzania’s Capital Markets and Securities Authority (CMSA), CPA Nicodemus Mkama said Tanzania’s capital market has continued diversifying through innovative financial products and strong investor participation.

Mkama noted: “Tanzania has now issued 18 Sukuk bonds in the market, collectively clocking 718 billion TZS, with the most recent issuance last week seeing a 28% oversubscription.”

He added that assets under management in Collective Investment (CIS) Schemes increased by 174.2% to TZS 6.1 trillion by May 2026.

Mkama said that the recently listed ITRA East African Large Cap ETF became the first regional exchange-traded fund to demonstrate East African capital market integration.