How technology is driving African securities markets’ collaboration

The integration and collaboration of capital markets in Africa have been significantly driven by technology and a sound regulatory environment. CNBC Africa recently connected with Abena Amoah, the Deputy Managing Director of the Ghana Stock Exchange, and Michael Mensah, the CEO of Ghana's Central Securities Depository, to discuss the importance of this collaboration. The capital markets in Africa play a crucial role in promoting national economic development by providing access to long-term capital and investment opportunities. Collaboration with markets like Nigeria is seen as a key factor in driving the growth and development of these markets. The use of technology has been a game-changer in enabling this integration, especially in light of the challenges posed by the COVID-19 pandemic. The experience gained during this period has highlighted the potential for collaboration at a regional level, allowing African markets to learn from each other and accelerate their development. A key point emphasized in the interview was the role of brokers in driving the Africa Capital Market Integration Project. Brokers are seen as integral to the process as they are the operators on the ground, providing valuable insights into what is needed to facilitate their businesses. The Ghana Stock Exchange, along with other securities markets, aims to provide a platform that enables individuals to save and invest money in a regulated manner. This capital is then channeled to businesses, both in equity and debt form, to support their growth and job creation efforts. The importance of operating within established rules and regulations was highlighted as a key principle for ensuring market stability and investor confidence. Technology plays a critical role in achieving these goals, with features like KYC verification and cross-platform trading enhancing efficiency and accessibility for investors. Another key point discussed in the interview was the regulatory framework in place to guide market participants. In Ghana, the regulator has implemented a capital market master plan that provides guidelines for all stakeholders. Structures like the Securities Committee have been established to ensure that everyone understands their role and responsibilities in driving market integration. Regular meetings are held to review progress and address any challenges that may arise. The use of technology has been prioritized to streamline processes and ensure a smooth alignment between market participants. The collaboration between Ghana and Nigeria serves as a model for other African markets to follow, with the goal of fostering a stronger and more interconnected regional market. Overall, the interview underscored the importance of technology and regulation in driving collaboration and integration in African securities markets. Through a concerted effort from market participants, regulators, and technology providers, the vision of a more connected and efficient capital market in Africa is becoming a reality. As these markets continue to evolve and adapt to changing dynamics, the role of technology and regulation will remain pivotal in sustaining growth and fostering investor confidence. The commitment to collaboration and learning from each other's experiences will be key in driving the future success of African securities markets.