The aim of the Capital Markets Africa 2017 conference is to highlight African Markets in a Shifting Global Landscape.
The 2-day conference, currently ongoing at Crowne Plaza Hotel in Upper-Hill Nairobi comprises participants from over 250 actors in Africa’s financial sector, who will share ideas on how to strengthen Capital Market in the content. Participants include African practitioners, financial institutions, regulators and academics who will discuss what it will take to build resilient capital markets in a challenging global environment.
Local capital markets should meet the financial needs of the private sector for it to thrive, and according to International Finance Corporation (IFC) Director Mr. Oumar, the access to finance is still a challenge especially for small businesses which account for most of a country’s Gross Domestic Product (GDP).
The IFC Africa supports ‘deepening’ of African Capital Markets and has issued bonds in 5 African currencies in the past 5 years. Financing African development requires long term investments. Dynamic capital markets can boost the economic growth thus creating job opportunities.
“We are committed to using our expertism and resources to develop capital markets” said IFC Chief Economist Mr. Lance. “But what we should always ask ourselves is ‘how can capital markets mobilize resources to meet Africa’s growing needs?’ ”
The private sector should be on the forefront in boosting the African Capital Markets. This is because public finance, development assistance and loans are insufficient in meeting Sustainable Development Goals.
Capital markets, however have helped in unlocking funding for private sector projects in agriculture, housing and other financial services. The World Bank Group study shows the private sector financing for infrastructure could be more than double if the potential capital markets in Africa are harnessed.
“To get 3% of a trillion to flow into developing market infrastructure, we need to think big” says CNBC Africa’s Peter Lankes.
The IFC has announced $20M Investment in debt in the African local currency bond fund (ALCB Fund Ltd) to improve the long term access to local currency by the private sector.