Few African countries can effectively access capital in their
domestic markets
African capital markets are generally small, illiquid and lacking a
full range of financial and investment products
TUNIS, Tunisia, October 24, 2012/ -- The African Financial Markets
Initiative (AFMI), managed by the African Development Bank (AfDB)
(http://www.afdb.org), hosted a Pan-African Stakeholder Workshop from
October 22 to 24, 2012, at the Ramada Plaza Hotel in Tunis. The workshop
offered a unique opportunity for policymakers and market participants to
share experiences and contribute to discussions on critical issues facing
the development of local currency bond markets in Africa.
In contrast to other regions in the world, few African countries can
effectively access capital in their domestic markets. This is because
African capital markets are for the most part at an early stage of
development and therefore are generally small, illiquid and lacking a full
range of financial and investment products. However, financial sector
development, including matured local currency bond markets, is paramount to
successful and sustainable economic growth in Africa.
Through exchange and discussion during the Pan-African Stakeholder Workshop,
participants from 50 African countries, including sovereign issuers,
institutional investors, representatives from finance ministries, central
banks, credit rating agencies, stock exchanges and development finance
institutions, covered areas such as the development of primary and secondary
markets, the expansion and diversification of the investor base, and
strengthening of domestic bond market infrastructure.
Charles Boamah, AfDB Vice President for Finance, said: "The forum offered a
great opportunity for stakeholders to identify and prioritize the challenges
and impediments to bond market development on the continent. We look forward
to the outcomes from this event that not only allow us to agree with our
development partners and stakeholders on the work that lies ahead, but also
to come up with a concrete action plan to be shared with Finance Ministers
and Central Bank Governors for support in implementation."
The African Financial Markets Initiative (AFMI) is an integrated and
tailored response to meet the market needs of stakeholders in Africa.
Launched by the AfDB Group in 2008 and funded by the AfDB, the Fund for
African Private Sector Assistance (FAPA) and the Canadian International
Development Agency (CIDA), AFMI is designed to further develop domestic debt
markets on the continent.
Distributed by the African Press Organization on behalf of the African
Development Bank.
About the Fund for African Private Sector Assistance (FAPA)
The Fund for African Private Sector Assistance (FAPA) is a multi-donor
thematic trust fund that provides grant funding for technical assistance and
capacity building to support implementation of the African Development
Bank's Private Sector Development Strategy. The Government of Japan, the
African Development Bank (http://www.afdb.org), the Austrian Development
Bank and the Government of Austria are the contributors to the fund, which
to date has provided US $35 million to 42 projects across the African
continent. The FAPA portfolio includes regional and national projects in
sectors such as Business Enabling Environment, Financial Institutions
Support, Infrastructure, Trade and Micro-, Small and Medium Enterprises. For
further information on FAPA, please contact FAPA@afdb.org
About the Canadian International Development Agency (CIDA)
The Canadian International Development Agency (CIDA) is Canada's lead agency
for development assistance. CIDA's aim is to (i) manage Canada's support and
resources effectively and accountably to achieve meaningful, sustainable
results, and (ii) engage in policy development in Canada and
internationally, enabling Canada's effort to realize its development
objectives. The current Canada Technical Cooperation Agreement with AfDB was
signed in 2008, committing CAD $5 million in untied CIDA grant fund to
strengthen the AfDB's institutional capacity as well as that of African
countries to meet their development objectives. CAD $35 million has been
provided for five Canadian Technical Assistance Fund Agreements since 1973.
Priority areas are aligned with the AfDB's Medium-Term Strategy: to support
economic growth, good governance, regional economic integration, private
sector development, greater integration and mainstreaming of environmental
protection and gender equity. The bilateral fund is also helping to
institutionalize the AfDB's commitment to results-based management.