- Exchanges urged to harness Africa’s population and AfCFTA
- African exchanges have grown from 5 in 1989 to 229 today
GAZETTE REPORTER
African stock exchanges have been challenged to position themselves as gateways for global investments, leaders in financial innovation, and key players in shaping the global economic landscape.
This call was made by the Board Chairperson of the Botswana Stock Exchange (BSE), Neo Mooki, at the 27th Annual African Securities Exchanges Association (ASEA) Conference held in Gaborone recently.
Themed “Fostering Transformation in Capital Markets Through Innovation,” the conference brought together over 300 delegates – among them policymakers, business leaders and innovators – to explore strategies for advancing Africa’s capital markets.
Unified vision
Mooki urged African capital markets to adopt a unified vision that powers Africa into the global economy, emphasising their potential to drive sustainable growth.
The Vice President, Ndaba Gaolathe, concurred and highlighted Africa’s burgeoning population and the opportunities presented by the African Continental Free Trade Area (AfCFTA) as catalysts for economic transformation.
Gaolathe, who is also the Minister of finance, emphasised the pivotal role of capital markets in Africa’s economic renaissance, noting that the continent’s population is expected to reach 2.5 billion by 2050.
He encouraged exchanges to exceed global standards by blending technological innovation with African-specific solutions.
From five to 29
“Africa has already demonstrated its capacity to leapfrog traditional development paths through innovations like mobile money platforms and e-commerce ecosystems,” said Gaolathe.
“By fostering collaboration between the public and private sectors, we can create capital markets that are globally competitive, resilient and uniquely African.”
He praised the rapid growth of African stock markets, which have expanded from five exchanges in 1989 to 29 today.
The Vice President called for a robust investor base, stronger domestic retail and institutional participation, and dynamic pension fund systems to ensure long-term liquidity.
Debt restructuring
“These initiatives will shield African economies from challenges such as inflation and debt restructuring while bolstering financial ecosystems,” he added.
The Director of Trade Services at AfCFTA, Emily Mburu-Ndoria, underscored the importance of harmonising trade and investment policies, fostering digital innovation, and protecting intellectual property to drive transformation in African capital markets.
She noted that AfCFTA is actively collaborating with the African Union to align financial regulations and create a predictable, uniform regulatory framework to promote cross-border investment.
Seamless capital flow
“One key initiative is the harmonisation of policies to facilitate regional integration,” said Mburu-Ndoria. “This will enable seamless capital flow across borders, connect markets, and unlock the continent’s untapped potential.”
She highlighted the adoption of the protocol on digital trade, which promotes tools like mobile banking, blockchain, and digital assets to enhance efficiency in capital markets.
“These technologies not only improve transparency and security in trading and settlement processes but also democratise access to financial markets,” she added.
Emerging technologies
The conference emphasised the need for African markets to enhance regulatory environments, adopt global standards, and integrate emerging technologies to drive transformative change.
The president of ASEA, Pierre Celestin Rwabukumba, stressed the importance of the conference as a platform to review progress, tackle challenges, and set strategic goals for African exchanges.
“ASEA aims to support member exchanges through capacity-building, technical expertise, and fostering a resilient industry,” he said.
Cross-border securities trading
“Our goal is to ensure each exchange becomes a catalyst for national and regional economic development, strengthens transparency, and boosts investor confidence.”
One of ASEA’s flagship initiatives, the African Exchanges Linkage Project (AELP), seeks to promote cross-border securities trading across Africa.
This initiative has been hailed as a significant step towards market integration, increased liquidity, and greater access to investment opportunities.