IFC's Frederic Wandey talks on capital markets development in Africa

The International Finance Corporation (IFC) is at the forefront of driving capital markets development in Sub-Saharan Africa, with a strong focus on creating and leveraging markets for long-term investments in the region. In a recent interview with CNBC Africa, Frederic Wandey, the Global Head of Treasury and Syndications at IFC, highlighted the importance of developing a sizable base of investors in each market to support critical sectors such as infrastructure, housing, and small and medium enterprises (SMEs). Wandey emphasized the need for capital markets to attract national savings into productive investments, ultimately fueling economic growth and development. IFC's strategy includes capacity building initiatives such as the IFC Milk and Institute Capital Market Program, which brings together regulators from emerging markets to study best practices in capital market development. By training regulators and fostering collaboration with financial institutions, IFC aims to create a cohort of experts capable of advancing the capital market agenda in their respective countries. One key aspect of IFC's efforts is issuing bonds in local currencies to support clients with revenue in local markets, thus mitigating foreign exchange risks. By listing these bonds on local exchanges and engaging domestic investors, IFC not only provides alternative funding sources for clients but also contributes to the development of domestic capital markets. This approach helps attract high-quality investments to markets where corporate bonds are still emerging, diversifying investment opportunities and bolstering financial stability. Wandey also touched on the role of institutions like the East African Securities Markets and Infrastructure Development (S-mid) in enhancing security markets and institutional frameworks in the region. S-mid plays a crucial role in developing regulatory frameworks and building market participant capacity across East African markets. Additionally, S-mid has been working towards market integration, allowing investors in one country to issue bonds in different markets within the region based on a unified framework. While Wandey acknowledged S-mid's progress in advisory services and market integration, he deferred the detailed discussion to his colleague Grace, who leads the program in Kenya. The collaborative efforts of organizations like IFC and S-mid are essential in driving sustainable growth and promoting financial inclusion in Sub-Saharan Africa's evolving capital markets. As African economies continue to strive for resilience and diversification, the development of robust capital markets remains a critical priority. IFC's initiatives and partnerships are poised to play a pivotal role in shaping the future of financial markets in the region, unlocking opportunities for investment, innovation, and socio-economic progress.