Mobilising Africa’s financial & capital markets

The 12th annual Building African Financial Markets Conference recently concluded with a focus on navigating new horizons within African financial markets. Organized by the Johannesburg Stock Exchange in collaboration with the African Securities Exchanges Association, the event brought together industry leaders to discuss key topics shaping the future of financial markets on the continent. Paul Bwiso, Chief Executive Officer of the Uganda Securities Exchange, shared insights on the conference's theme and its implications for Uganda's stock market. The conference centered around key areas such as the role of Small and Medium Enterprises (SMEs) in driving economic growth, sustainability practices, fintech innovation, and market linkages. Bwiso highlighted the importance of supporting SMEs to access alternative financing through capital markets. He also emphasized the adoption of sustainability standards like IFRS S1 and S2 to enhance transparency and attract investors. Furthermore, the African Exchanges Linkage Program, which aims to connect exchanges across the continent, was discussed as a means to improve liquidity and offer investors a diverse range of investment opportunities totaling $1.3 trillion across listed companies in Africa. Bwiso elaborated on the impact of macroeconomic stability on investor sentiment, citing Uganda's stable currency and low inflation rates as factors that attract investments. He noted the success of recent offerings like the MTN Uganda second market offer, which garnered significant interest from retail, institutional, and foreign investors. The conversation shifted towards supporting SME development, drawing parallels with initiatives at the Johannesburg Stock Exchange. Bwiso outlined Uganda's UAC Specialist Market, designed to incubate and accelerate SMEs while facilitating access to private capital. He stressed the importance of understanding the unique needs of local SMEs and providing tailored solutions to help them navigate the complexities of the public markets. In terms of upcoming listings, Bwiso mentioned a growing interest in the bond market, with three deals expected in the pipeline. While equities pose more challenges in terms of preparation and disclosure requirements, efforts are underway to engage local and foreign companies to consider listing on the stock exchange. Discussing sustainability, Bwiso acknowledged the regulatory framework mandating ESG reporting for listed companies. He highlighted the collaborative approach taken by regulators and industry bodies to support companies in adopting international reporting standards gradually. Initiatives like the financial reporting awards in Uganda have incentivized companies to enhance their ESG and sustainability practices to attract green finance and meet investor expectations. Overall, the conference provided a platform for stakeholders to exchange ideas, share best practices, and explore opportunities for collaboration within African financial markets. As countries work towards driving growth and sustainability in the post-pandemic era, the insights and initiatives discussed at the event will play a crucial role in shaping the future of the financial landscape in Africa.