Economy
The African Union (AU) on Wednesday stressed that capital markets are crucial imperatives for efficient functioning of Africa’s financial markets and for the promotion of domestic and foreign savings and investments.
AU noted in a statement that Africa’s financial markets are mainly dominated by domestic institutional and private investors.
“Capital markets recently began developing, though at a slow pace, and most African countries are still lagging behind,’’ the statement read.
According to the AU, the number of active stock exchanges in Africa has grown considerably since 1989.
“Most African countries’ stock exchanges, however, tend to be small and fragmented and they are characterised by a few listed companies.
“Capital markets play a vital role in increasing the mobilization of savings, therefore improving the efficiency and volume of investments, economic growth and the development of Africa,’’ it said.
According to the AU, mobilising domestic resources through the development of capital markets will go a long way in financing Africa’s development and in creating wealth for the African citizens.
The 55-member AU also said that African heads of states have also emphasised the importance of domestic resource mobilisation for the development of the continent.
“Domestic resource mobilisation has become imperative as a result of the increasing developmental requirements of the continent, including Africa’s 50-year development plan – the Agenda 2063 – and the global Sustainable Development Goals (SDGs),’’ AU said.
It also indicated that the need for key industry players, in a bid to list on the stock exchanges in order to further deepen the African capital markets, cannot be overemphasised. (Xinhua/NAN)
Dec. 5, 2018 @ 16:48 GMT |
Tags: AU stresses important role of capital markets in domestic foreign savings
