SecondSTAX, a Ghanaian fintech company, aims to simplify institutional access to Africa's small capital markets by providing access to stock markets for institutional investors. The company has recently signed an agreement with the African Securities Exchange Association (ASEA) to unify Africa's stock markets. SecondSTAX has raised $1.6 million in pre-seed funding and offers technology that allows access to debt and equity securities in the bond and equities markets of Accra and Nairobi.

The lack of market depth, timely information, and access in African stock markets limits investment options for institutional investors. SecondSTAX addresses these challenges by providing an order management and execution routing system for brokerage firms and institutional investors. The platform offers full access to data and company research from all participating exchanges in ASEA, which represents 32 exchanges in 37 African countries.

The African Securities Exchange Association has been working on the African Exchanges Linkage Project (AELP), which aims to connect African stock exchanges and make them accessible to investors from one platform. The project is inspired by the success of the Mercado Integrado Latinoamericano (MILA) in Latin America. AELP's trading platform, ALP Trading Link, initially connected seven exchanges, representing 2,000 firms with a combined market capitalization of $1.5 trillion. The project is supported by the African Development Bank (AfDB) and has connected a total of nine exchanges so far.

Africa's stock markets have a combined market capitalization of $1.6 trillion, with South Africa's Johannesburg Stock Exchange (JSE) and Nigeria's NGX being the largest. However, stock exchange rules that prohibit investment from non-citizens or non-residents can be a barrier for foreign investors. SecondSTAX aims to smoothen the Know Your Customer (KYC) process for institutional investors across different exchanges and plans to add the Pan-African Payment and Settlement System (PAPSS) to its FX marketplace to enable trades in multiple currencies.

SecondSTAX's platform is not available for retail traders, but retail investment apps like Bamboo and Chaka can use the platform to offer retail investors access to public companies across Africa. There is also growing interest among sophisticated retail investors in African stock markets, with a demand for a dependable platform that provides exposure to markets such as Zimbabwe and Zambia.

By simplifying access to Africa's capital markets and providing investment tools and connectivity, SecondSTAX aims to enhance the efficiency and liquidity of African securities exchanges and attract both institutional and retail investors to African stock markets.

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