Introduction

Africa’s financial markets are mainly dominated by domestic institutional and private investors. The domestic institutional investors include banks, most of which are ill-functioning, state owned and protected from outside competition, and insurance companies and pension funds. Capital markets recently began developing, though at a slow pace, and most African countries are still lagging behind. The number of active stock exchanges in Africa has grown considerably since 1989. However, most African countries’ stock exchanges tend to be small and fragmented and they are characterized by a few listed companies.

Capital markets are crucial and imperative for the efficient functioning of financial markets and for governments in the promotion of both domestic and foreign savings and investments. The mobilization and effective use of domestic resources has been identified as the most sustainable way of financing development. Mobilizing domestic resources through the development of capital markets will go a long way in financing Africa’s development and in creating wealth for the African citizens. In this regard, the need for key industry players to list on the stock exchanges in order to further deepen the African capital markets cannot be overemphasized.

The African Heads of States have emphasized the importance of domestic resource mobilization for the development of the continent. Domestic resource mobilization has become imperative as a result of the increasing developmental requirements of the continent including Agenda 2063 and the Sustainable Development Goals. Prioritising and investing in the capacity building of Member States so as to improve the capital markets is essential. Capital markets play a vital role in increasing the mobilization of savings, therefore improving the efficiency and volume of investments, economic growth and the development of Africa.

Objectif of the Workshop

The Workshop aims to bring together capital market practitioners with a view to building consensus on the role of capital markets in mobilizing resources for Africa’s development, in particular funding Agenda 2063 and the Sustainable Development Goals. Best practices will be shared from across the continent on what measures have been taken to build the capacity of capital markets to fund infrastructure projects in particular, and to finance long term projects in general. The Workshop will provide an opportunity to frame concrete policy options and actions for capital markets to be further developed and integrated in order to facilitate integration and harmonization of economic and financial policies.

Date and Venue

The Workshop will take place from 5 to 7 December 2018 in Gaborone, Botswana.

Format of the Workshop

There will be a general introduction on the theme of the Workshop, followed by presentations and a high level policy dialogue aimed at articulating the issues on the role that capital markets can play in mobilizing resources for Africa’s development. The Workshop will discuss various Capital Markets related issues on the continent and provide guidance to Member States. The subsequent sessions will be organized in breakaway sessions to exchange views on the following sub-themes:

i. Infrastructure and Technology
ii. Liquidity
iii. Regional Integration

PARTICIPATION

The Workshop will attract representatives from African Stock and Securities Exchanges, Stockbrokers, Regulatory authorities, Private Sector and Regional Economic Communities. The African Securities Exchanges Association, United Nations Economic Commission for Africa, African Development Bank, the African Capacity Building Foundation and the African Union Commission are also expected to attend.

CONTACTS

For more information, kindly contact:

Department of Economic Affairs
African Union Commission
Addis Ababa, Ethiopia
Tel: +251115182658

Email:
Ms Ndinaye Charumbira at CharumbiraN@africa-union.org
Ms Rumbidzai Manhando at ManhandoR@africa-uninon.org