Is the Stock Exchange of Mauritius an official market template in Africa?

Now on the march towards its fourth decade, the Stock Exchange of Mauritius (SEM) contributes significantly to Mauritian economic growth both in short-term and long-term metrics. The SEM, despite the Covid-19 pandemic, was reported to have posted about MUR713 million in foreign portfolio investments since the start of the year up to May 14, 2020. For some analysts, this remarkable performance makes the Stock Exchange of Mauritius an official market template that other African stock markets could emulate.

Its forward-looking stance and adaptability to change are the main sources of strength for SEM in the face of adversities like the Covid-19 pandemic. Since its founding in 1989, the Mauritian stock exchange has undergone several transformations to successfully position itself amongst the top investor destinations in Africa.

International calibre

The SEM today runs via a state-of-the-art operating system. Its trading each business day is on a five-and-a-half hour schedule. More than 200 securities are listed on the exchange, with the listings consisting of varying asset-classes from local, African, and international companies.

Also, the SEM in 2011 set up a multi-currency listing platform. This has enabled trading and capital-raising in US dollars, Euro, pound sterling, and South African rand, besides Mauritian rupees. Trading on these currencies is not found elsewhere in Africa and is amongst the few conducted on the world markets.

The SEM today runs via a state-of-the-art operating system. Its trading each business day is on a five-and-a-half-hour schedule.More than 200 securities are listed on the exchange, with the listings consisting of varying asset-classes from local, African, and international companies.

Far-reaching activities

Both retail and institutional investors worldwide can track trading at the SEM in real time. This has been made possible through top-ranked global market-watchers like Bloomberg, Financial Times, and Thomson Reuters that cover live the trading at the Mauritian stock exchange. The SEM in 2018 also launched a free app called mySEM for real-time stock trading through mobile phones.

The SEM has contributed to the democratisation of the Mauritian economy, as it has drawn more than 100,000 Mauritians to acquire shareholdings in major local companies.  Currently, local investors account for 55 percent of SEM trading activities, while foreign investors garner the remaining 45 percent. Institutional investors like mutual funds, insurance companies, and pension funds account for some 75 percent of the SEM’s trading volume.

By the most recent count, the trading activities enabled its listed companies to raise more than USD6.5 billion. This has not only brought great value for these companies, but it has also created potent opportunities for wealth-creation amongst investors, both local and foreign.

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