EFG Hermes, an Egyptian investment management firm, facilitated $1.25 billion worth of securities transactions on sub-Saharan African stock markets in 2020, according to a press release issued by the company.

With an aggregate transaction value of $717.4 million, the Nairobi Securities Exchange (Kenya Stock Exchange) recorded the largest volume of activities in the region.

The Egyptian firm is the second largest on the Lagos Stock Exchange, with 484 million stock exchange transactions managed. Other countries where it has been active are Ghana ($33.6 million transactions) and Tanzania ($20.3 million).

"We are proud of the work we have done to enter sub-Saharan Africa. Our success today despite difficult circumstances is a testament to the long-term vision our company has taken on the development of the financial market in the region," said Ali Khalpey, MD of EFG Hermes Frontier.

The company has deployed a targeted expansion strategy in Kenya, serving domestic and foreign institutional investors. It has managed to double its market share to 52% and is now ahead of competitors.

The company’s managers are also getting ready to launch the first online trading platform on the Kenyan market. To do so, EFG Hermes will just extend its trading application, EFG Hermes One, through which it plans to reach retail investors.

This development is taking place in a context where the stock market culture is changing in sub-Saharan Africa. In several countries in the region, companies and individuals are becoming more aware of the role of financial markets in the management of savings.

But this demand is not always accompanied by a sufficiently informed supply to encourage investment decisions. This offers opportunities for new players to progress.

In 2020, EFG Hermes had not ruled out expanding its activities on the WAEMU regional stock exchange and also diversifying its transaction offerings.

"We are currently seeking to expand our local offering to include fixed-income trading, a structured product offering, as well as a local investment banking offering," the MD explained.

Idriss Linge