The new trading facility offers companies whose shares are traded on African stock exchanges the chance to also list their shares for trading on the JSE’s automated system, linked to that of the London Stock Exchange.

The first “dual-listing” is likely to be Namibia’s Trustco Holdings Group, in February. The group offers micro-finance, micro-insurance and other businesses including property development and says it was rated the most liquid in 2007 of the local companies traded on the Namibian Stock Exchange.

Africa’s smaller capital markets have been challenged by lack of liquidity for more than 10 years, making it hard for investors, particularly foreign institutions, to buy and sell shares. This, in turn, deters capital raising for African businesses. For some years, the JSE has sought to offer African exchanges access to its world-class trading, settlement and data systems, but the next-door Namibian Stock Exchange has been the only taker and linked its trading systems to the JSE in 1998.

In order to move forward, the JSE changed tack and a team has visited several African exchanges, including Côte d'Ivoire, Namibia, Zimbabwe and elsewhere. In early research they identified 44 companies, including energy, transport, telecoms, breweries, agricultural and financial services, that they believe could believe would benefit from being traded on the Africa Board. Listing requirements for the Africa board will be as stringent as for the main board on the JSE.

The biggest challenge is convincing Africa’s regulators and exchanges that the move would not take business away from the local market and stockbrokers. Another proposal under discussion seeks to develop systems to channel regional and international trading onto local exchanges.

According to Maureen Dlamini, Executive Head of the Africa Board, the increased trading and international profile of the Africa Board should make the shares trade more actively on their national exchange: "When Anglo American and SA Breweries dual-listed on the FTSE, everyone thought it would take away liquidity in the local market," she says. "It turns out it improved liquidity at home too."

The Africa Board offers world-class trading systems and market surveillance as well as data disseminated to global and local traders and investors. The JSE says it will share trading revenue with the local exchange. The board is open to African companies, either those based on the continent or those with the majority of operations in Africa.