Saturday, May 9, 2015

Chofor Che ― The challenges of fostering harmony amongst stock markets in the Central Africa

The African securities market has witnessed serious development since the early 1990s, but the central African region has not benefited from this evolution. According to an article dated the 2 of April 2015 byThis Day Live, prior to 1989, there were just eight stock markets in Africa of which three were in North Africa and five in sub-Saharan Africa. Today, there are over 22 stock exchanges in Africa. Alongside the rapid expansion of stock markets on the continent, there has also been a significant growth in market capitalization and the number of listed companies. At present, over 50 per cent of the 54 countries in the continent have formed securities exchanges. 

 In an effort to promote regional cooperation, individual African securities exchanges created an African Securities Exchange Association (ASEA) in 1993. The ASEA was incorporated in Kenya in the same year. Recently, there have been calls by interest groups for business combination of West African stock exchanges in other to foster unity and a wider securities market to ensure speedy development of the region in line with the ASEA objectives. Why has the Central African region not followed the example of West Africa? Is it a problem of lack of adequate constitutional and legislative parameters in the region? Is it a problem of lack of political will? Is it lack of personnel and institutions? If so what can be done to change the status quo for harmony and unity in the stock exchange market in the Central African region and in Africa at large?

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