African stock markets leaders meet in Kampala

Stakeholders in various African Securities Exchanges will today meet in Kampala to find alternative solutions to financing development projects and business growth on the continent in order to reduce dependence on foreign assistance.

The group including stock market chief executives, international and domestic investors, financial intermediaries, Africa government representatives and policy makers will meet at the Kampala Serena Hotel during the 12th Annual Conference of the African Securities Exchanges Association (ASEA) between today and tomorrow.

The Association consists of 26 African securities exchanges with an aim of providing a formal framework for the mutual co-operation amongst members.

At least 400 guests are expected to attend the two-day meeting which is hosted by the Uganda Securities Exchange (USE), Uganda’s stock market at the time when it is celebrating its 10th anniversary.

Mr Simon Rutega, the chief executive officer of the USE told Daily Monitor in an interview last week, that delegates at the conference will discuss how capital markets can drive the economic agenda for Africa.

“This is because in the past, we have not concentrated on our domestic capital. Africa has largely depended on donor funding for capital. But over the past 10 years or so, our capital markets have developed and we are beginning to believe in ourselves and mobilise our own savings,” Mr Rutega said.

According to the CEO, more Africans including Ugandans are beginning to understand the need and roles of long term instruments like long term bonds including corporate and government bonds. Uganda alone has seen its number of bonds grow to 30 from nothing, 10 years ago. Today, the USE holds 27 bonds in excess of Shs1trillion.

Mr Rutega said the participants will also focus on good cooperate governance with a focus on how entrepreneurs can ensure that they incorporate good business practices in managing the capital that accrues from financial markets.

“When you raise money through capital markets, there’s an obligation and sometimes our people need to understand that the obligation is through good corporate governance,” he said. Under corporate governance, the stakeholders are expected to address transparency, accountability, and disclosure by companies so that they empower investors to make informed decision by having all the necessary materials availed to them.

Mr Alan Patricof, the managing director of Greycroft Partners and Co-Founder of Apax Parteners in America will also empower participants with knowledge on venture capital –money for funding investors without the capital they need and how it can work.

Ms Arunma Oteh, the vice president for Corporate Affairs of the African Development Bank, and Mr Jimnah Mbaru, the chairman of Dyer and Blair Nairobi are also expected to discuss the benefits of African exchanges integrating.

Uganda’s President Yoweri Kaguta Museveni and Finance Minister Ezra Suruma are expected to attend the event.