TheCable

African stock exchanges can change the continent’s narrative from being the next economic frontier to “Africa has arrived”.

Veteran banker, Aigboje Aig-Imoukhuede, made the submission at the third Building African Financial Markets Capacity Building Seminar (BAFM) in South Africa.

According to Aig-Imoukhuede, capital formation, income inequality and the wealth divide, economic policy and planning, sustainability and best practices are key areas where African stock exchange can make useful interventions for the economic well-being of their nation.

“By reconsidering our current priorities and building on our knowledge base of models and practices that enable us leapfrog from our current third world realities to higher levels of development, we can change the Africa Rising narrative and make it ‘Africa has arrived,’” he said.

Aig-Imoukhuede acknowledged that African securities exchanges are contending with challenges such as trading limited to a handful of stocks and generally low liquidity, but he urged them to “lead the march for change” by influencing their governments to implement enabling policies that would encourage the flow of capital and investment to the continent.

“As children, citizens and businessmen and women of this amazing continent that is often referred to as the ‘last frontier’, we can take from others’ experiences, but we must do what is right for the future of our nations and our people,” he said.

“The world is getting flatter every day; and with a soaring world population, we must facilitate the drive for wealth creation for our own people, while providing the platform to which global savings can be channelled. We must use this opportunity to partner with each other, to enable us further unlock our continent’s growth potential, and advance the development of our financial and capital markets.”

The banker said consistent policy regimes based on just and equitable principles that will generate and preserve issuer and investor confidence in African capital markets must be maintained to achieve this.

The BAFM event holding at the Johannesburg Stock Exchange in Sandton was organised by the South African bourse African Securities Exchange Association (ASEA) and the World Bank Group to promote the growth and development of African financial markets by giving representatives from stock exchanges, regulatory bodies, stock-broking firms and other interested parties the opportunity to deepen their operational knowledge about topical subjects related to capital markets.

Aig-Imoukhuede is currently first vice president of the Nigerian Stock Exchange (NSE). He is expected to take over from Aliko Dangote as the president of the Council of the Nigerian Stock Exchange (NSE) before the end of the year.