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 International Organization of Securities Commissions (IOSCO) published on 4 March a report on liquidity risk management for collective investment schemes (CIS)
The 86 emerging markets members of the world’s securities markets regulator, International Organization of Securities Commissions form 80% of IOSCO membership and are increasingly important in the global economy. They back setting up IOSCO Foundation, to boost funding so IOSCO can scale up research, education and training and technical assistance.
Today the Nigerian Stock Exchange is to launch its market-making programme. This will be a hybrid process, with market makers offering 2-way (buy-sell) price quotes in selected securities and a continuation of the current process in which licensed broker/dealers of the NSE submit orders.
South Africa’s Minister of Finance, Pravin Gordhan said the continent needs to take advantage of having a market of 1bn people and some of the world’s fastest-growing economies: “You can’t ignore a continent like Africa. In the next 15-20 years the focus on Africa will sharpen.”
South Africa’s Government has released the Financial Markets Bill for public comment, with comments due by 5 September. The new law would replace the Securities Services Act.
The dynamic Stock Exchange of Mauritius is pushing ahead with building itself as a secure base for international funding transactions and an African alternative to international listing venues. It is moving to becoming a multi-product exchange aimed at the international market.
A panel is working on a proposed bill, the “Financial Report Proclamation of Ethiopia”, which could bring fundamental changes to Ethiopia’s financial reporting system by requiring compliance with international financial reporting standards (IFRS).
African capital markets require more capacity-building. The recent conference of the International Organisation of Securities Commissions (IOSCO) resolved to give support to help markets develop strong infrastructure, more investor education, good corporate governance and the capacity to enforce market rules and regulations.