The African Development Bank Group (AfDB) has convened over 50 leaders from across Africa’s capital markets to chart a bold new financial architecture, one that could reshape how the continent mobilises long-term investment.
Presided over by AfDB President Dr Sidi Ould Tah, the two-day dialogue brings together heads of African securities exchanges, development banks, private equity and venture capital firms. The gathering marks the first time the Bank Group has held dedicated high-level consultations with stock exchanges.
“As the architects of Africa’s capital markets, you are custodians of financial institutions and catalysts of our continent’s future,” Dr Ould Tah told delegates.
He argues that strengthening these markets is central to bridging Africa’s vast financing gap, particularly for long-term development.
African stock exchanges represented at the meeting include the West African Regional Stock Exchange (BRVM), the Nairobi Stock Exchange, the Rwanda Stock Exchange, the Tunis Stock Exchange, the Casablanca Stock Exchange, Mozambique, Cabo Verde, Central Africa and Ghana.
One of the key themes of the discussions is reforming how Africa raises and deploys “patient capital”: money that can stay invested for the long haul, rather than being focused on short-term returns. Underpinning Dr Ould Tah’s approach is his “Four Cardinal Points” strategy, prioritising predictable, affordable, long-term financing.
Dr Felix Edoh Kossi Amenounve, chief executive of the BRVM, welcomed the initiative but cautioned that significant reform is needed. He noted a mismatch between the continent’s ambitious infrastructure and development plans and the current state of African pension funds, many of which were originally designed to finance governments rather than private enterprise.
A central objective of the AfDB-led consultations is to channel more private equity and venture capital into small and medium-sized enterprises (SMEs), mid-sized firms, and emerging industrial players. As the Bank highlights, SMEs account for nearly 90 per cent of businesses on the continent and provide over 60 per cent of jobs, yet they struggle to access risk capital.
To unlock that potential, the Bank proposes to reinforce existing African investment funds, expand financial education, and promote digitalisation across markets. The discussions also emphasised sustainable finance and fintech as potential accelerators.
Regulatory convergence remains a major hurdle. Sonia Ben Frej, Chairwoman of the Tunis Stock Exchange, stressed the need to modernise outdated market rules across jurisdictions.
Meanwhile, Donald Waweru Wangunyu, non-executive director at the Nairobi Stock Exchange, called for closer regional coordination to scale up reforms.
Through technical assistance, policy dialogue and capacity building, the AfDB aims to help stock exchanges and regulatory bodies become more robust. Over the longer term, it envisions supporting research, training and product development to deepen liquidity and broaden investor bases.
Dr Ould Tah laid out a three-pillar approach to capital market development:
Institutional support: providing technical assistance to exchanges, regulators and market intermediaries.
Diversifying participation: promoting new savings and investment vehicles, credit-enhancement tools, and stronger institutional investor engagement.
Capacity building: boosting financial education, policy research and stakeholder dialogue to build the skills needed for more effective markets.
These efforts, he said, are key to reducing Africa’s dependence on overseas development assistance, by channeling more capital through homegrown markets.
The discussions, which continue into their second day, will extend to heads of African development finance institutions. Together, participants hope to forge a more co-ordinated strategy that allows stock exchanges, DFIs and private capital to work in concert.
“We will build it together, it requires a collective effort from each of us,” Dr Ould Tah said, underscoring the importance of shared ownership for Africa’s financial future.
The African Development Bank Group is Africa’s premier development finance institution. It comprises three distinct entities: the African Development Bank (AfDB), the African Development Fund (ADF) and the Nigeria Trust Fund (NTF).
On the ground in 41 African countries with an external office in Japan, the Bank contributes to the economic development and the social progress of its 54 regional member states. For more information
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