African markets have seen a lot of volatility in the last 18 months. Worldwide investors first rushed out, then realized that many African businesses were not badly affected by the global financial crisis, and that African banks were not exposed to the same risks as international bans, and in some cases came back. The lesson learned by international investors is to prioritize liquidity as a way of managing risk. Leading African exchanges are seeking ways to offer liquidity, including widening the range of products on offer. Exchanges that cannot offer liquidity will tend to stay “off the map”.
Last night (15 March), African Capital Markets News editor chaired a panel discussion on African capital markets at the 5th Annual African Investment Conference in London, organized by stockbrokers Securities Africa and Citigroup Emerging Markets. Here are a few extracts from the discussions.