Top officials from the Ghana Stock Exchange (GSE) and other major African stock markets met at the headquarters of the African Development B...
Top officials from the Ghana Stock Exchange (GSE) and other major African stock markets met at the headquarters of the African Development Bank Group (AfDB) in Abidjan this week for high-level discussions focused on creating a "new African financial system."
Over the course of two days, over 50 delegates from regional and continental stock exchanges, development finance organizations, and private sector investors convened to discuss methods of attracting long-term funding and enhancing the financial markets across the continent.
The gathering, held with the support of AfDB President Dr. Sidi Ould Tah, represented the initial direct interaction between the Bank and African stock markets regarding the advancement of capital markets.
At the opening session, Dr. Ould Tah stated, 'As the builders of Africa's capital markets, you are guardians of financial institutions and drivers of our continent's future.'
"By leveraging patient capital, you enable our sovereigns and companies to access varied funding options, while giving investors, especially institutional ones, a wider range of possibilities," he said.
A major emphasis during the discussions was on enhancing access to funding for small and medium-sized enterprises (SMEs), which account for almost 90 percent of businesses and more than 60 percent of jobs throughout Africa.
Although they are economically significant, small and medium enterprises still encounter restricted availability of risk capital.
The African Development Bank emphasized that strengthening African investment funds and growing private equity and venture capital markets would be essential for promoting industrialization, expanding mid-sized businesses, and fostering new domestic leaders.
Dr. Felix Edoh Kossi Amenounve, the CEO of the BRVM, supported the initiative, highlighting that African pension funds could contribute more to economic development if regulatory and structural changes were made.
"There are discrepancies between financial requirements and existing resources, yet we must consider the reforms necessary to enhance the capitalization of African pension funds," he stated, emphasizing the significance of regional collaboration.
Attendees highlighted the difficulties in aligning regulations across different regions and the necessity to update obsolete systems.
Sonia Ben Frej, the head of the Tunis Stock Exchange, emphasized that aligning regulations is crucial for a unified African financial market.
Donald Waweru Wangunyu, a Non-Executive Director at the Nairobi Stock Exchange, mentioned that expanding initiatives and enacting changes would demand unified regional collaboration, stating, "We have solid projects, yet challenges remain."
The African Development Bank presented a three-part strategy to tackle these challenges: providing technical help and institutional support to stock exchanges and regulatory bodies; expanding the range of savings mobilization methods to enhance liquidity and credit markets; and conducting research, training, and policy discussions to strengthen the capabilities of stakeholders.
The importance of digitalization and the use of financial technology was emphasized as a means to boost market efficiency, with a strong focus on financial literacy among young people to develop a sustainable investment mindset.
For Ghana, the initiative carries special importance. The GSE, together with other West African exchanges, could gain from increased institutional investment, better regulatory coordination, and more developed markets—helping to boost pension fund mobilization, SME financing, and overall private sector growth.
Dr. Tah highlighted the teamwork involved. "We will construct it together; it needs a joint effort from everyone," he mentioned.
The AfDB's involvement demonstrates its overall Four Cardinal Points approach, focusing on sustainable economic development, industrial advancement, and financial stability.
Provided by SyndiGate Media Inc. (Syndigate.info).
