eCommerce

The decline of African capital markets is a serious issue with many causes. The evidence is the declining number of listings and the complete absence of capital raising through stock exchanges. First, high inflation and heavy government borrowing block equity markets growth. This limits private capital investment. Next, the cost of trading shares is high, which stops people from buying and selling as often as they might.

Market structures are also unbalanced. Foreign investors face limits, fx and tax costs are high, and there is too much regulatory interference. These issues lead to low liquidity, so companies have small, narrow groups of shareholders. Poor investor relations practices make things worse because investors don’t get enough information or access to easy cost-effective trading. This lowers overall trust and makes people less likely to invest.

Due to low trading, shares are undervalued, and company-led share buybacks take even more shares off the market. This further limits trading and weakens liquidity.

Finally, many companies decide to de-list, which reduces the number of options for investors. Markets go backwards.

No listings, no capital raising, no investment.

If these structural problems continue, they will hurt the health and future of African public capital markets.

There is an anti-dote, of sorts.

hashtag

#investorrelations

hashtag

#capitalmarkets

hashtag

#sustainability

Big News for Zambia's Stock Exchange!

The Lusaka Securities Exchange Plc (LuSE) and Financial Sector Deepening Africa (FSD Africa) have signed a historic MoU to revise LuSE Rules!

What does this mean?

Streamlined operations

Increased market participation

Alignment with global sustainable finance trends

Capacity-building initiatives

Boost to listings, trading, and wealth creation

This partnership will enhance Zambia's capital markets, creating jobs, reducing poverty, and driving prosperity!

LuSE CEO, Nicholas Kabaso: "This initiative will accelerate listings, enhance trading, and foster wealth creation for investors."

FSD Africa CEO, Mark Napier "We're proud to support LuSE in strengthening Zambia's capital markets."

hashtag

#LuSE hashtag

#FSDAfrica hashtag

#CapitalMarkets hashtag

#StockExchange hashtag

#FinancialInsight hashtag

#Get2know

Our hashtag

#CapitalMarkets progress report is here! As one of the key highlights of our two-day hashtag

#SustainableCapitalMarketsConference, we unveiled our latest progress report, highlighting milestones achieved through our catalytic work in hashtag

#Africa’s capital markets.

Some of our key achievements include:

💰 Catalysing $1.2 billion in sustainable local currency capital

💼 Launching the Dhamana Guarantee Company for credit enhancement

🚰 Issuing hashtag

#Tanzania’s first water bond to fund critical infrastructure

🤝 Establishing the Pan-African Fund Managers Association (PAFMA) and Africa Pension Supervisors Association (APSA) to strengthen market collaboration

Why capital markets matter:

Capital markets are a powerhouse for hashtag

#EconomicGrowth, unlocking access to essential finance for both the public and private sectors to address hashtag

#ClimateChange, hashtag

#biodiversity loss, and more. By fostering local currency capital markets, we can reduce currency risks and build a resilient financial ecosystem that’s equipped to withstand external shocks.

The report's key themes include financing solutions for hashtag

#poverty, hashtag

#GenderInequality, hashtag

#ClimateAction, and biodiversity; bridging Africa’s financing gap by mobilising private domestic capital and deepening local capital markets to meet critical funding needs; and empowering Africa’s financial markets with tools and resources for large-scale impact.

Hi family,

I am super interested in these areas to collaboratively working with you guys. Who are also interested in?!

Did you know that half of AFRICA’s gdp comes from just FIVE (5) countries? Here’s what to know: The Big 5 African economies — hashtag

#SouthAfrica 🇿🇦, hashtag

#Egypt 🇪🇬, hashtag

#Algeria 🇩🇿, hashtag

#Nigeria 🇳🇬, and hashtag

#Ethiopia 🇪🇹 —have a combined GDP of $1.4 trillion.

The rest of AFRICA, 48 countries in total (see note below), have a combined GDP of $1.4trillion, highlighting the deep economic divide within the continent.

Here are the TOP twelve (12) economies in AFRICA:

1 hashtag

#SouthAfrica 🇿🇦- $373.23

2 hashtag

#Egypt 🇪🇬- $347.59

3 hashtag

#Algeria 🇩🇿- $266.78

4 hashtag

#Nigeria 🇳🇬 - $252.74

5 hashtag

#Ethiopia 🇪🇹 - $205.13

6 hashtag

#Morocco 🇲🇦 - $152.38

7 hashtag

#Kenya 🇰🇪- $104.00

8 hashtag

#Angola 🇦🇴- $92.12

9 hashtag

#CôtedIvoire 🇨🇮- $86.91

10 hashtag

#Tanzania 🇹🇿- $79.61

11 hashtag

#Ghana 🇬🇭- $75.24

12 hashtag

#DRC 🇨🇩- $73.76