Embrace capital markets as tool for development — West African govts advised
THE Director General of the Nigerian Securities and Exchange Commission (SEC), Nigeria, Dr Emomotimi Agama, has called on West African governments to fully embrace the capital market as a critical instrument for long-term development and inclusive wealth creation.
He explained that there was an untapped power of capital markets to reshape the region’s financial future. However, without robust engagement with the capital market, African nations risk continued mismatches between short-term funds and long-term infrastructural needs.
The call comes at a time when West Africa faces the dual challenge of economic recovery and development financing.
“The capital market is the engine room of any nation’s development. Without it, we cannot fund the kinds of long-term projects that build resilient economies.
Governments must not only support the capital market but also use it as a platform to raise capital for national development,” he said.
ICMA conference
Dr Agama made the call in an interview with the media on the sidelines of the inaugural International Capital Market Association (ICMA) West Africa Conference held in Accra on the theme: “Shaping the future of West Africa’s bond markets: Trends, opportunities and innovations.”
The conference, organised by the Ghana Stock Exchange (GSE) in partnership with the ICMA, brought together senior market participants including regulators, policymakers, central banks, banks and market infrastructure providers to explore developments in West Africa’s bond markets.
He further urged policymakers to go beyond lip service and commit to deliberate reforms, investment and education that will enhance public confidence and participation in capital markets.
According to him, greater collaboration among West African countries, backed by strong regulatory frameworks and investor education, will enable the region to attract both domestic and international capital.
Highlighting Nigeria’s recent milestone, Dr Agama explained that the country has enacted a new Investment and Securities Act after nearly two decades, a move he described as futuristic and pivotal in positioning Nigeria’s market for accelerated growth.
“This new law speaks to the future of the capital market, and we are proud that Nigeria is leading in this regard. It sets the tone for what is possible when political will meets technical expertise,” he added.
Financial integration
The Chief Executive Officer (CEO) of GSE, Abena Amoah, said her outfit was working actively with regional partners to deepen financial integration across West Africa.
She said through the West Africa Capital Markets Integration Project, Ghanaian investors might soon be able to trade securities listed in Nigeria and on the Abidjan Regional Securities Exchange (BRVM) which represents eight Francophone countries in West Africa using a single platform.
“A Ghanaian now, instead of having access to only the securities that are listed on the GSE, also has access to trade on the Nigerian Exchange and on the BRVM. It means you can participate in the growth and well-being of West Africa,” she said.
Mrs Amoah said the integration project was being coordinated in collaboration with joint regulators under the West Africa Securities Regulators Association (WASRA).
According to her, several initiatives are currently in the pipeline, and the investing public can expect major announcements by the end of the year.
“We think by the end of the year, we'll be informing the general public of some of the exciting initiatives and opportunities that are coming to them,” she said.
Collaboration
For his part, the CEO of ICMA, Bryan Pascoe, emphasised the need for industry-led standards and broader collaboration to enhance Ghana’s weak bond market, saying “industry action is very important, therefore market practitioners need to take some of the responsibility and look to progress things themselves.
According to him, initiatives such as setting common market practices, increasing issuer diversity, and developing liquidity-enhancing products are all key steps market players can take collectively.
He further expressed ICMA’s readiness to support Ghana and other West African markets in shaping sustainable capital markets through continued dialogue, capacity-building efforts and technical partnerships.