Chronicle Editor
Leonard Ncube and Caroline Mutsawu, Business Reporters
AFRICAN stock exchanges are on a growth trajectory leveraging on technological developments and innovation initiatives over the years, African Securities Exchanges Association (ASEA) president Mr Thapelo Tsheole has said.
Speaking at the Committee of Sadc Stock Exchanges (CoSSE) Bi-Annual meeting and the African Securities Exchanges Association (ASEA) BAFM in Victoria Falls, Mr Tsheole said innovation is key in addressing risks and challenges faced by exchanges in the continent.
“And from this seminar members raised significant issues relating to capacity building as well as members to look at various strategies to develop the African traditional market.
” There is a lot of development taking place in Africa from technology to market development to innovation instruments.
“The majority of African markets are actually on a fast pace development which is very appreciated and you can actually see the difference in terms of the last few years when you compare to the status quo.
“We realise that a lot of markets have developed in terms of the services that they offer and quality as compared to benchmarking on international standards which I think is a very appreciative thing,” said the ASEA president.
He said therefore, ASEA, from now onwards will be looking at strategic partnerships with various institutions to support capacity building on various exchanges and also to support some of developmental hubs be it adoption of climate financing or the risks to address challenges.
Mr Tsheole said African exchanges have common challenges but “the good thing is that we are able to acknowledge and see these challenges from a common position and we are able to work as a continent towards resolving them.”
Stock exchange experts from over 30 countries attended the two events that were hosted by the Zimbabwe Stock Exchange (ZSE) under the theme: “Managing risk in turbulent times.”
During discussions, participants noted that the African continent is one big market and there is a need to connect the dots.
They said the bond market can be a key driver of the economies as an investable commodity.
Mr Tsheole said there is a need to make sure there is interaction with member exchanges and market professionals as an element to collect information on some points affecting various member exchanges.
He said the continental body takes a leaf from a call by Ministry of Finance and Economic Development non-accounting Permanent Secretary Dr Judith Kateera who was guest of honour at the opening ceremony to build exchanges brick by brick.
ASEA was formed in 1993 in Nairobi, Kenya.
In his closing remarks ZSE chief executive Mr Justice Bgoni said the event was a success as it highlighted the need for collaboration among members.
Project manager for the African Exchanges Linkage project which is an initiative of the African Securities Exchanges Association and Africa Development Bank Ms Lina Touni said a lot of work was being done to facilitate cross border trading among exchanges.
She said there is a need to facilitate research across the continent so as to create a hub for African investors as well as the
‘Africa we want’ as defined through the Africa Continental Free Trade Area initiative.
This is in line with the Africa Agenda 2063 to make Africa strong and resilient.
“The purpose of the project is to enable cross-border trading across securities markets. As we work together on cross-border trading we do support linkages and capacity building. So by bringing exchanges together we hope to bring investment,” she said. — @ncubeleon
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