East African stock market leaders are working together to revive the long-stalled Capital Markets Infrastructure (CMI) project. This regional initiative aims to electronically link exchanges across the bloc to boost cross-border trading, deepen liquidity, and expand investment opportunities. The renewed push marks a significant step toward economic integration under the East African Community (EAC) agenda.
The East African stock exchange linkage would connect eight markets: Kenya, Uganda, Tanzania, Rwanda, Burundi, South Sudan, Somalia, and the Democratic Republic of Congo (DRC). Discussions for Phase Two now also include Ethiopia, bringing the total to nine participating nations. While Burundi and Somalia have launched nascent exchanges, South Sudan and the DRC are still setting up theirs.
Originally launched in 2015 with World Bank support, the project stalled due to several challenges. These included funding shortages, procurement disputes, the absence of functional exchanges in some countries, and weak political commitment. As a result, only Uganda, Tanzania, and Rwanda completed Phase One. Kenya withdrew over concerns about software procurement, and Burundi lacked an operational exchange at the time.
However, recent developments have reignited momentum. Last week, chief executives from regional exchanges—including newly established ones in Ethiopia and Somalia—met in Arusha, Tanzania. This was their first joint meeting of 2026. They gathered to assess the project’s status and plan the next steps. Participants included regulators, central banks, depositories, and the EAC Secretariat.
Frank Mwiti, CEO of the Nairobi Securities Exchange (NSE), chaired the meeting. He emphasized that all EAC partner states—plus Ethiopia—are now engaged. “With all EAC partner states, plus Ethiopia, at the table, the foundations for an integrated East African capital market are being laid,” he said. Funding for Phase Two will come from the African Development Bank (AfDB), which reportedly made Kenya’s return a condition for new financing.
Importantly, Mwiti clarified that the goal is not to create a single unified exchange. Instead, the plan is to link existing exchanges so investors can trade across borders more easily, raise capital regionally, and access broader opportunities.
Kenya’s re-entry is a major turning point. The NSE hosts the region’s largest bourse, and its absence weakened the original effort. In 2025, Nairobi announced it would rejoin Phase Two, citing expanded growth potential after the DRC and Somalia joined the EAC. Industry sources confirm that AfDB required Kenya’s participation before releasing funds.
Previously, Kenya had set strict conditions for returning. These included restarting the software procurement process, clarifying maintenance costs, and agreeing on fair cost-sharing. By 2025, however, the NSE softened its stance as business prospects improved.
Meanwhile, Uganda, Rwanda, and Tanzania have already interconnected their trading systems and linked them to the CMI platform. Rwanda Stock Exchange CEO Celestin Rwabukumba noted last year that Phase Two would finally bring all markets—including Somalia, Burundi, and Ethiopia—into the fold.
The revived East African stock exchange linkage could solve a persistent problem: low liquidity in cross-listed stocks. Many companies avoid secondary listings in neighboring countries because trading volumes remain too thin. A connected system would pool liquidity, making regional listings more attractive.
Looking ahead, success will depend on sustained political will, transparent procurement, and inclusive governance. If executed well, the CMI project could transform East Africa into a more dynamic and integrated investment destination—fulfilling a vision first introduced over a decade ago.
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