Future proofing Africa’s financial markets

African economies are at a pivotal moment, with the need to reinvigorate financial markets and strengthen market infrastructure through technological innovation and investment-enabling policies. CNBC Africa spoke with Kimacia Gitau, the East Africa Region representative at the Chartered Institute for Securities and Investment, to gain insights into how Africa is future-proofing its financial markets. Across the region, there is a clear focus on driving financial inclusion and raising awareness about the value of capital markets products and services. Initiatives like the IOS Co-World Investor Week have seen significant participation, showcasing the commitment to educating and protecting investors. Rwanda and Tanzania are making strides in strengthening their capital markets and regulatory frameworks. Rwanda, in particular, has signed a cooperation agreement with the International Financial Corporation to bolster its capital markets and is setting up the Kigali International Financial Center to transform into an international financial hub. Tanzania is also enhancing its regulations, with recent discussions on crowdfunding guidelines and a thriving banking sector that has contributed to significant financial inclusion in the past decade. In Kenya, there is renewed vigor in the capital markets space, with the president advocating for more listings and financial inclusion. The Nairobi Securities Exchange (NSE) has launched the NSE Marketplace to drive growth in the stock market, while the banking sector continues to diversify revenue streams with premium banking and wealth management services. Sustainability in finance is emerging as the next frontier, with initiatives like green finance gaining traction. Kenya's NSE and Central Bank have introduced guidelines for firms to disclose their exposure to climate risks, signaling a move towards more sustainable practices. Infrastructure development is crucial for advancing financial markets, with a focus on technology and regulation. Adopting technology solutions enhances trading effectiveness and connectivity, with initiatives like the Africa FinTech platform aiming to link various markets. Regulators are implementing measures to foster innovation through regulatory sandboxes, promoting startups and FinTech firms. Strong regulatory frameworks are essential for customer protection and market competitiveness, with countries like Kenya and Tanzania focusing on crowdfunding and collective investment regulations to support vibrant markets. In Ethiopia, significant progress is being made towards establishing the Ethiopian Securities Exchange (ESX), with plans to list at least 50 companies at launch, attracting investment and privatizing state-owned enterprises. Building knowledge and expertise within the capital market is a key focus, with initiatives like the CI and FSD collaboration supporting capacity development in Ethiopia. Overall, Africa's financial markets are on a trajectory of growth and sustainability, driven by technological advancements, regulatory reforms, and infrastructure enhancements.