The development of organized securities markets in Africa reflects a gradual yet significant institutional transformation in the continent’s financial architecture. At the forefront of this evolution stands the Egyptian Exchange (EGX), established in 1883. As the oldest stock exchange in Africa, EGX represents the earliest formalization of capital market activity on the continent.[1]
Its establishment in the late nineteenth century positioned Egypt among the pioneering jurisdictions globally to institutionalize securities trading within a regulated exchange framework. Over time, EGX has grown into one of Africa’s largest and most influential capital markets, serving as a central platform for equity and debt financing, market disclosure, and corporate governance oversight within North Africa and the broader region.[2]
According to the African Stock Exchanges Focus Report published by Oxford Business Group, the combined market capitalization of African stock exchanges stands at approximately US$1.6 trillion, representing roughly 2% of total global stock market capitalization.[3]
This proportion indicates that, despite ongoing institutional development across the continent, African equity markets remain relatively small within the global financial system, reflecting limited depth and integration compared to major international exchanges.
Somali National Stock Exchange
Within this continental framework, the establishment of the Somali National Stock Exchange in June 2025 represents a recent and significant institutional development. As Africa’s newest exchange, it signals Somalia’s re-engagement with formal capital market structures and reflects ongoing efforts to strengthen financial governance. The introduction of an organized securities market provides a legal and institutional platform for equity participation, capital mobilization, and enhanced disclosure standards.
The trajectory from the establishment of the Egyptian Exchange in 1883 to the inauguration of the Somali National Stock Exchange in 2025 illustrates the dynamic evolution of African capital markets. It demonstrates how longstanding financial institutions coexist alongside newly created exchanges, collectively shaping the continent’s emerging architecture of market-based finance.
At present, no publicly consolidated or independently verified data has been released regarding the aggregate market capitalization of the Somali National Stock Exchange. Unlike long-established African exchanges, which publish audited annual reports and operate within mature securities regulatory regimes, the Somali exchange remains at an embryonic stage of institutional consolidation. More fundamentally, the absence of a comprehensive and codified capital markets statute raises structural questions regarding the legal foundation of the new market.
From a corporate governance perspective, the absence of a structured regulatory regime may limit transparency, impede investor confidence, and constrain the enforceability of disclosure and listing obligations. Market capitalization figures, in mature systems, are not merely statistical aggregates; they are products of legally enforceable reporting standards, audited financial statements, and standardized valuation mechanisms. In the absence of such safeguards, capitalization data if published would lack the assurance mechanisms typically associated with recognized securities markets.
[1] Mauro Mecagni and Maged S Sourial, ‘The Egyptian Stock Market: Efficiency Tests and Volatility Effects’ (1999) IMF Working Paper No 99/48, Published by International Monetary Fund, Pp. 1-30, available at file:///C:/Users/previ/Downloads/001-article-A001-en.pdf. accessed 20/Feb/2026
[2] Wagdi, Osama, Egyptian Exchange: Organizational Structure, Trading System, Indices & Economic Factors (April 2, 2014). Scientific Journal of Economic and Commerce, Ain Shams University, Volume 4., Available at SSRN: https://ssrn.com/abstract=2419539. Accessed 22/Feb/2026
[3] The Co-operator News, ‘Top 10 largest stock markets in Africa named’ (2023), https://thecooperator.news/top-10-largest-stock-markets-in-africa-named/.
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