The annual ASEA Conference (African Security Exchange Association Conference) opened in Johannesburg last Sunday, November 15. The meeting is taking place after a very difficult year for most African exchanges, as they have been affected by monetary challenges, lower commodity prices, and the depreciation of assets of mining companies.
During this annual meeting, CEOs of African stock exchanges are working to put common projects in place, “The issue of establishing a single index project in African markets in recent years, was the subject of discussion. We are already beginning to find common ground, but positions on certain issues are still conflicting “said a CEO of the Agence Ecofin.
Other projects, (such as cooperating with the African Development Bank for the introduction of its bonds on African exchanges) were also discussed. Oscar Onyema, general manager of trading in Lagos, and president of ASEA, stated, “I just finished my first year in office (…). There are many things that are progressing and, on some points, we have considerablyadvanced.”
For some at the Johannesburg Stock Exchange, the success of this meeting lies in the fact that it is being held at all, “For us it is a privilege to host the event. We will certainly share a lot with our colleagues from other African markets, and we will also learn a lot from how they behave in different environments, “said Nicky Newton-King, the Executive Director JSE.
For some directors, the event is a novelty and a great learning opportunity. In Uganda, one of the challenges is to increase liquidity. This goes beyond educating investors, it requires more companies. “I hope to communicate with people who will allow us to find solutions in this direction,” said Paul Bwiso, CEO of the Ugandan Securities Exchange.
Participants at the conference were also able to discuss the role of pension funds in financial market dynamics, and how they can be mobilized in a sustainable way.
They also discussed on the need for the establishment of a clearing house to service all African markets. This is an important step in the process of creating a single platform for African markets.
