African stock exchanges pledge to extend common listing rules

Published November 7th, 2000 - 02:00 GMT

Stock exchanges in Africa have adopted a joint rule governing the listing of equities in the capital market and pledged to support their growth, a statement released here on Monday said. 


Participants at the two-day Annual Conference of the African Stock Exchanges Association (ASEA), which ended in Nigeria on October 26, called for sustained efforts to create and support institutions facilitating the growth of African stock markets, said the communique sent to AFP here by the Nairobi Stock Exchange (NSE). 


“These institutions include stock exchanges, merchant banks, insurance companies and stockbroking firms," the communique said, and called for concerted and sustained efforts to change negative foreign investor perception of African markets, through road shows by African companies and stock exchanges. 


"African stock exchanges must join the struggle to empower indigenous African companies, as a basis for the sustainable development of the continent," the communique urged. 


In particular, the statement said, African governments should offer practicable support systems to leverage indigenous businesses through the frameworks of the stock exchange and the Small and Medium Enterprises Agency (SMEDA), as proposed during the conference by the Nigerian government. 


Urging African leaders to demonstrate their political commitment to the economic integration efforts by implementing all integration decisions faithfully, it appealed to African countries to gradually liberalise and automate their markets. 


"Regional integration of African stock markets will enable African stock markets to take advantage of associated economies of scale to create and improve on their liquidity, expand product range, and attract more foreign investments," the communique stressed. 


Participants at the conference, which was opened by Nigerian Vice President Atiku Abubakar on behalf of President Olusegun Obasanjo, included regulators and operators of African stock markets, fund managers and investment analysts from Asia, Europe and the United States, as well as securities markets, technology providers and financial markets information vendors. 


Stock exchanges represented in Abuja, the Nigerian capital, included those from Botswana, Egypt, Ghana, Ivory Coast, Kenya, Malawi, Morocco, Mauritius, Namibia, Nigeria, South Africa, Swaziland, Tanzania, Uganda, Zambia and Zimbabwe.— (AFP)  


© Agence France Presse 2000  


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