The African Securities Exchange Association (ASEA) and the United Nations Economic Commission for Africa (ECA) have signed a Memorandum of Understanding (MoU) in a move towards fostering closer collaboration and promoting financial market development and integration in Sub-Saharan Africa (SSA).
A statement from ASEA on the deal, indicated that the pact represented a major milestone in the efforts to develop Africa’s capital markets, improve market capacity, enhance investor confidence, facilitate peer learning, and promote regional integration.
According to the ASEA, by leveraging their respective expertise, the partners will jointly work on several key areas of cooperation as outlined in the MoU, including studies and research on financial market development and integration in Africa; training and technical cooperation at national, sub-regional, and continental levels; and policy dialogues and advocacy for African countries.
Commenting on the landmark deal during the signing ceremony in Addis Ababa, Ethiopia, the President of ASEA/CEO of Botswana Stock Exchange, Mr. Thapelo Tsheole, enthused: “This MoU represents a significant step forward in our collective efforts to develop robust and sustainable capital markets across Africa. By working together, we will create an enabling environment for businesses, foster investor confidence, and contribute to the overall economic growth and prosperity of the continent”.
In his remarks, the Officer-in-Charge, Private Sector Development, and Finance Division of the ECA, Robert Lisinge, noted that at the time of uncertainty and turbulence the partnership would help to address the investment needs of businesses in African countries.
The investment expert said: “It’s critical for development partners to speed up their efforts in helping African countries develop their domestic capital markets, to not only mobilize resources and attract investments but also build resilience with market depth”.
Similarly, the Divisional Head, of Capital Markets at Nigerian Exchange Limited (NGX), Jude Chiemeka, described the partnership as desirable for strengthening the capital market in the continent, stressing that the initiative will broaden the range of financial services and investment opportunities available to both local and foreign investors.
