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West African Capital Markets Set For Integration


Capital markets across West Africa may soon be integrated to boost regional trading and liquidity flow among member states.

The new development will enable Nigerian investors and companies to raise funds for trading in bonds and stocks listed in capital markets, who are members of the bloc using the service of a licensed issuing house or broker-dealer.

“Integration of our capital markets will bring about formidable benefits, and help increase the breadth and depth of markets across our region,” said Arunma Oteh, director-general of Nigeria’s Securities and Exchange Commission (SEC) at BusinessDay’s 4th annual capital markets conference.

She noted however the importance of ensuring best practices in the sub-region’s integration approach. This Oteh said, will herald product innovation.

Oteh also stressed that integrating capital market across West Africa is key to helping the subregion solve the problems of inclusive growth.

The West African capital market will comprise the Nigerian Stock Exchange (NSE), Ghana Stock Exchange (GSE) and the Cote d’Ivoire Bourse Regionale des Valeurs Mobilieres (BRVM). 2013 records show that the NSE has 190 listed companies valued at $82 billion; GSE’s 34 companies had a $26 billion value, while the 72 companies listed on the BVRM had a value of $12 billion.

President/Chairman, Chartered Institute of Stockbrokers, Albert Okumagba expressed excitement over the market integration, saying major achievements can now be celebrated as the integration is already producing results.

Stock exchanges, market operators and also regulators will be involved in the markets integration, said Okumagba. He added that the integration broadens market access and enables product diversification.

According to him, West Africa will witness “considerable growth in per-capita incomes” when the markets are finally integrated. (Ventures Africa)

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