Africa: Stock Exchange and Capital Markets Essay

Submitted By tinaxiah
Words: 6141
Pages: 25
Open Document
THE PROMOTION OF CAPITAL MARKETS IN AFRICA: Assessment of needs in Capital Markets Development Southern, Western and Central Africa

1-3 November 1999 Addis Ababa, Ethiopia

TABLE OF CONTENTS
Page I. II. Introduction.........................................................………......1 The findings of the Needs Assessment Missions to Southern and West African Countries.....…………….........4 South Africa............................................................…………...5 Botswana...............................................................…………....7 Malawi..................................................................…………......8 Zambia.................................................................….……….....9 Ghana..................................................................………........11 Nigeria..................................................................…………....14 Cameroon (Banque des Etats de I’Afrique Centrale - BEAC)..................................................…………...15 Côte d’Ivoire (Bourse Regional Des Valeurs Mobilieres BRVM)...........................................………............16 III. The Needs Assessment Survey Questionnaire in Capital Markets Development Summary Responses.………………………………………………….....18 Recommendations for the Design of the ECA Annex 1..................................................................………...23 The Promotion of Capital Markets in Africa...…………...23 Annex 2..................................................................………...27 List of Institutions Visited and Meetings with Chief Executives...............................................……………….....27

IV.

For this and other publications, please visit the ECA web site at the following address: http: //www.un.org./depts/eca/ or contact The Director Development Management Division (DMD) Economic Commission for Africa P. O. Box 3001 Addis Ababa, Ethiopia Tel: (251 – 1) 51 72 00 Fax: (251 –1) 51 44 16 E-mail: ecainfo@un.org

Material in this publication may be freely quoted or reprinted but acknowledgment is requested, together with a copy of the publication containing the quotation or reprint.
I. Introduction

There is indeed a growing body of research which points towards capital market development and financial deepening in general and stock markets development in particular making positive contribution to economic growth. An array of financial instruments including stock market quoted shares and the bond market is almost certainly going to enhance the overall level of savings in an economy. Capital markets are the markets for long-term loanable funds as distinct from the money markets, which deals in short-term funds. However, there is no clear-cut distinction between the two markets. In principle, capital market loans are used by industry and commerce mainly for fixed investment. The capital market is an increasingly international one and in any country the market is not one institution but all those institutions that much the supply and demand for long-term capital and claims on capital. In this respect, stock exchanges could be defined as the central point of the capital market. The evolution of capital markets in Africa in recent years has been rather dramatic, as countries have sought not only to mobilize domestic resources but also to attract foreign direct investment. Accordingly, activity in a number of capital markets that had been dormant for years picked-up significantly and a number of new markets have emerged. In a number of established stock exchanges, activity has been boosted by increased listings of companies; mostly made possible by privatization of state-owned enterprises. At present, there are about twenty stock exchanges in the continent (See Table 1). However, many African stock markets are characterized by a relatively limited number of scrip, which are held to a substantial extent in perpetuity by few insurance and pension funds. The participation by individual savers/investors is
Show More

Related Documents: Africa: Stock Exchange and Capital Markets Essay

World Equity Of Exchanges At The Heart Of The World Economy

THE SIGNIFICANCE OF THE EXCHANGE INDUSTRY J U LY 2002 WORLD FEDERATION OF EXCHANGES At the Heart of the World Economy Over the past decade, regulated securities exchanges have come to play a major new role in the international financial system. That role is qualitatively different from anything seen since World War II. Quantitatively, the markets operated by regulated exchanges have grown to a scale unimagined before, giving them an active role and responsibility at the heart of the world…

Words 2831 - Pages 12

BAV final report Essay

1100961, 1450598, 1450848, 1450689 Catalogue Introduction 3 Strategy Analysis 3 SWOT Ananlysis 4 Trend Analysis 4 Financial Ratio Analysis 5 Financial performance 5 Profitability 5 Investors Ratio 5 P/E ratio 5 Working Capital Efficiency 6 Segmental Analysis 6 Africa: 6 Asia: 7 Narrative Reporting 7 Competitor’s Performance 7 Conclusion 8 Final Recommendation 9 Reference List 10 Appendices 11 Introduction PZ Cussons is a well-diversified international consumer products group, focusing…

Words 2490 - Pages 10

TOPIC 1 Essay

Topic: “Assess the importance of institutional investors for financial markets” Institutional investors are the large organizations with massive amount of money, which they invest into different companies and they also hold the portion of equity, the leading institutional investors are pension funds, mutual funds and insurance funds. Institutional investors work for the financial return which means profit earned by each investment rather than private benefit of control such as social status. There…

Words 1830 - Pages 8

Trade Bloc Essay

the world’s total crude oil that is roughly 37.62 million barrels of crude oil a day. Regulated oil prices all around the globe and ensures market stability. OECD The Organisation for Economic Co-operation and Development. This is an international economic organisation of 34 countries to stimulate economic progress and world trade It is a global market economy that Provides a platform to compare policy experiences, seek answers to common problems, identify good practices and coordinate domestic…

Words 585 - Pages 3

305 Investment Essay

both in terms of profitability and the time it will take to repay their costs. For the purpose of making investment decision in this assignment, two portfolios of six companies are picked from the New Zealand Stock Exchange, Australian Securities Exchange and from the international market. Decision will be made after critical analysis of the company’s activities both within and outside the company that have an impact on its profitability and continued growth. Performance would be accessed through…

Words 2411 - Pages 10

Essay Research: Vietnam and Ges Company Confidential

OF ENGINEERING May 6th 2008 GES Company Confidential Scale Image of Semiconductor Market 33 trillion $US (World GDP) 1 trillion $US Electronic Products Electronic Devices (Semiconductor/FPD) Semiconductor/FPD Production Equipment The World Economy Solar Cell App, emerging 275 Billion $US 40 Billion $US Source: Gartner Dataquest GES Company Confidential WW Semiconductor Capital Equipment Annual Spending from 2006 - 2009 Projection indicates most semiconductor manufacturing…

Words 1538 - Pages 7

Economic Growth Essay

This Coursework will permit me to look briefly at the China growth process, GDP per capital average annual growth rate, and compare it with the Sub-Saharan African Region. Table 1. GDP per capita average annual growth rate for Four Decades (1970-2010) |Region |Subgroup | Year |Value% |Year |Value% | |Africa |Total |1970-1990 |0.9 |1990-2010 |2.1 | |China…

Words 2459 - Pages 10

Swot Analysis Of Barclays

Introduction We have selected 3 companies from banking sector of London Stock Exchange 100 index. • Barclays PLC • HSBC Holdings PLC • Standard Chartered PLC These companies are analyzed on their dividend policies with the help of historic data (Income Statements and Balance Sheets) Barclays PLC Company Information Barclays PLC is a global financial services provider serving in financials under retail banking, investment banking, wholesale banking, credit cards, investment management and wealth…

Words 2604 - Pages 11

Essay on You Are an Investment Analyst

You Are an Investment Analyst Abstract Through this paper Pepsi and Coca Cola will be fully evaluated. A stock market analysis will be presented to a client as part of a professional consultation process. A background of both Pepsi and Coca will be accompanied in order to have a full synopsis of each company. The stock trends will be examined for both investment options. The stock trends will be based from the intial public offering day to January 2, 2012. Current events surrounding both…

Words 3160 - Pages 13

Transport Infrastructure In South Africa

Southern Africa moves a lot of tonnage every year with massive amounts of trade between countries, one important aspect to look at is the country’s infrastructure. It is also a limiting factor to some SADC countries, under developed infrastructure could be potentially damaging to a countries economy. In this part of the assignment I am going to discuss South Africa and Namibia’s transport infrastructure and also discuss if there are any plans for future improvement SOUTH AFRICA South Africa currently…

Words 2070 - Pages 9