SEM’s Chummun on how stock exchanges can advance the Africa partnership agenda

The Africa Partnership Conference recently concluded, marking a significant moment where key private sector leaders and government representatives deliberated on strategies to boost Intra-Africa trade and foster inclusive growth in the region. Following the event, CNBC Africa correspondent Palesa Mofokeng engaged in a compelling discussion with Dipak Chummun, the Chairman of the Stock Exchange of Mauritius. The conversation revolved around the pivotal role of stock exchanges in advancing the Africa partnership agenda, shedding light on the performance of listed companies and the potential for expanding market participation. Chummun commenced the conversation by highlighting the presence of African companies on the stock exchange, emphasizing the notable interest and trading activity surrounding these entities. Despite the modest percentage of local domestic traditional stocks being traded, international listings have garnered substantial attention and demonstrated resilience against market volatility induced by events such as the COVID-19 pandemic and geopolitical conflicts. The post-COVID period witnessed a rebound in stock prices, particularly for companies in the hospitality and travel sectors as business operations resumed and exhibited robust performance. The Chairman underscored the need to attract more companies to list on the stock exchange while enticing investors to engage with listed entities, thus fostering market growth and diversification. In response to queries regarding popular stocks and their performance, Chummun highlighted the positive trajectory of banking and hospitality stocks within the Mauritian market. The Mauritius Commercial Bank stood out for its commendable performance in recent years, signaling sustained growth and investor confidence. Additionally, the resurgence of hospitality stocks post-COVID showcased the sector's resilience and recovery, reflecting buoyant business activities. Other standout performers included an insurance company and an energy firm, underscoring the diverse investment opportunities available within the Mauritian stock exchange ecosystem. Delving into the broader implications of stock exchanges in enhancing intra-African trade, Chummun articulated the significant role these platforms could play in bolstering the continent's financial services industry and internal liquidity. The prospect of African investors accessing diverse investment opportunities through cross-border exchange participation could contribute to making the continent more attractive for both regional and international stakeholders. As Africa charts a path towards sustainable growth and development, leveraging stock exchanges as key facilitators of intra-Africa trade could fuel economic progress and deepen financial inclusion across the region. As the Africa Partnership Conference resonated with discussions on the continent's potential and growth aspirations, Chummun's insights underscored the pivotal role of stock exchanges in shaping a conducive environment for investment, trade, and economic cooperation within Africa and beyond.