News and developments on African capital markets, includes: African securities, African stock exchanges/stock markets, African equities, African bonds, African private equity/venture capital, and African social impact investment
The business environment is rising higher on the agenda of African governments and more progress is being made, but there are still major issues. Doing Business 2193 report by the IFC and the World Bank and the Mo Ibrahim Index on African Governance, both published in October, highlight which economies and governments are improving fastest.
Lots of useful commentary is published this week about what’s going wrong with the world’s leading capital markets and finance and it has lots of useful insights for those involved in developing Africa’s capital markets. The latest bout of soul-searching follows the publication of Prof John Kay’s “The Kay Review of UK Equity Markets and Long-Term Decision Making” on 23 July.
Rwanda’s Savings and Credit Cooperatives (known as SACCOs) are being encouraged to take more interest in investing into the capital market including bonds and equities. They are estimated to hold deposits worth over RWF15 billion (US$24.7 million).
The Securities Commission of Zimbabwe (www.seczim.co.zw) has declined to grant the Zimbabwe Stock Exchange (www.zse.co.zw – under maintenance), an operating licence, according to local media, and is challenging the exchange to provide a business plan.
Share prices on the Tunisian Stock Exchange have been moving ahead all November, starting with a positive reaction to the meeting between Rachid Ghannouchi, leader of the Islamist Ennahda party and stock market executives only days after the election and moving forward as the politics progressed well.
Sierra Leone could be the fastest-growing economy in the world in 2012, according to a story on Bloomberg’s Businessweek, which says Finance Minister Samura Kamara forecasts growth at 50%, because of new iron ore mines coming on stream, and 10% in 2013 and in 2014.
Reuters newsagency has put together stories on issuers’ and investors’ difficulties with African stock markets. These include lack of liquidity and sinking currencies. It notes that African companies are increasingly dual listing on international stock exchanges.
U.S. development finance institution, the Overseas Private Investment Corporation (OPIC), is to invest up to $285 million in financing to private equity funds. These in turn should raise more than $875m, representing the largest commitment by the U.S. Government to impact investing in emerging markets.
Developing Africa’s securities exchanges is critical for the continent’s development, with capital markets standing between huge demand for capital for growth and huge demand to invest. The key issues are on the agenda of The 15th Annual African Securities Exchange Association conference (in Marrakesh, Morocco), hosted by Casablanca Stock Exchange, 12-13 December.
The African Development Bank is playing its role in Africa with skill and is getting more backing from its principal shareholders because of its successes as an African institution. Moving back to Cote d’Ivoire is also on the agenda.