The Fund for Africa Private Sector Assistance (FAPA) hosted by the African Development Bank (AfDB) has made a seed equity investment of $400,000 in Africlear Global, a company founded by the Central Depository and Settlement Corporation (CDSC) Kenya, Central Securities Clearing System (CSCS) Nigeria and Altree Financial Group.

Africlear Global has partnered with the AfDB in an effort aimed at delivering improved information technology and support services to central security depositories operating across Africa.

The goal of the investment is to enhance the efficiency of capital markets by supporting the modernization of central securities depository infrastructure across Africa.

Africlear said the immediate benefits include improved access to a wider menu of comprehensive securities services, greater collaboration between countries, and more cost-effective pricing of securities market infrastructure.

CDSC Kenya Chief Executive Rose Mambo will serve as Africlear’s first Chairperson.

She believes Africlear will enable central depositories across Africa to more easily identify, acquire and maintain critical systems and financial technology.

“Africlear members will be able to realize significant cost savings via collective bargaining with industry participants and technology vendors,” she said.

Africlear’s board members also include CSCS Nigeria MD/CEO Kyari Bukar, Altree Financial Group Chairman Anthony Fischli, and an as yet to be determined representative from the AfDB.

Bukar believes Africlear will accelerate process standardization and promote system integration across borders: “By employing industry best practices, Africlear will facilitate improved levels of transparency and corporate governance within the African capital markets.”

“This will enable local market practitioners to more effectively compete for domestic and international capital,” he said.

By delivering shared economies of scale, Africlear will allow its members to offer a greater menu of services ranging from corporate actions processing to collateral management to clearing and settlement.

Fischli said Africlear supports an open market place where scale and connectivity serve as the company’s competitive strengths.

“The AfDB investment in Africlear Global supports the improvement of securities market infrastructure through promotion of industry-leading technologies designed to enhance the underlying efficiency and overall functioning of the African capital markets,” he said.

FAPA is a multi-donor thematic trust fund that provides grant funding for capacity building, seed capital and advisory services to support implementation of the Bank’s Private Sector Development Strategy.

The FAPA portfolio includes regional and national projects aimed at improving the business environment, strengthening financial systems, building private sector infrastructure, promotion of trade and development of micro, small and medium enterprises.

The Governments of Japan and Austria, and the AfDB are active contributors to the fund, which to date has provided over $60m to 56 projects in 38 countries across the African continent.

CDSC Kenya is approved by the Capital Markets Authority of Kenya and serves as the quality provider of clearing and settlement services to the Kenyan capital markets.

CSCS Nigeria is licensed by the Securities and Exchange Commission of Nigeria and serves as the clearing and settlement house for the Nigerian capital markets and the Nigerian Stock Exchange.

Altree Financial Group is an integrated financial services company licensed to conduct investment business by the Bermuda Monetary Authority.