1 Demutualizing African Stock Exchanges: Challenges and Opportunities Presented at the 9 th Annual ASEA Conference, Cairo, September 10-12, 2005 By Sam.

Slides:



Advertisements
Similar presentations
Anna Nechai, PhD Legal and Pension Expert
Advertisements

1 African Capital Markets and the Global Partnership for Development Abdoulie Janneh UN Under Secretary-General and Executive Secretary of ECA UN Regional.
Re-shaping the Role of Bretton Woods Institutions New Progress, New Trends, New Challenges, and New Directions By ZOU Jiayi World Bank Executive Director.
Addressing Key Structural Vulnerabilities for [Africas] LDCs UN-OHRLLS Brainstorming Meeting on Substantive Preparation for UNLDC-IV New York, NY
1 Transnational Corporations and the Infrastructure Challenge in Africa Session 37 Achieving the Millennium Development Goals in Africa: Should Service.
Think Ahead Again Across Three Secrets 1.Understanding the Context 2.Seizing the Opportunities 3.Addressing the Risks and Challenges.
GHANA STOCK EXCHANGE Bringing Companies and Investors Together. Presentation at ASEA Conference CAIRO – EGYPT 10 – 12 Sept By EKOW AFEDZIE GENERAL.
Accra, Ghana Tuesday 30 th October 2007 Neil Harvey – CEO, Renaissance Africa Corporate Governance & Market Development in Africa’s Capital Markets African.
Saving, growth and the current account Daan Steenkamp ERSA / SASI Savings workshop August 2009.
1 1 Recent Developments in African Capital Markets – The Nigerian Case October 29, 2007 Discussion Notes By: Godwin Obaseki.
Financial Sector Development in Armenia: Problems and Challenges Conference on “Armenia: Challenges of Sustainable Development" in honor of Professor of.
By Kimera Henry Richard, Chief Executive, CONSENT Sixth Annual African Consumer Protection Dialogue Conference 8-10 September 2014, Lilongwe, Malawi.
CHANGING CHINA, CHANGING AFRICA: FUTURE CONTOURS OF AN EMERGING RELATIONSHIP Peter Draper South African Institute of International Affairs (presenter)
Capital Markets & Private Sector Development in Saudi Arabia: Focus on Debt Capital Markets Dr. Yahya Alyahya, CEO Gulf International Bank, B.S.C. Session:
Building the Financial System of the 21st Century: An Agenda for the EU and U.S.
Capital Markets : Best Practices India CFO Summit 2005 – Mumbai 25 Nov Alok Misra, Group CFO MphasiS BFL.
Competing in the Capital Markets Arena Ramcharan Kalicharan CFA.
Financing the Sustainable Development Goals International Conference, Accra, Ghana 18 March 2015 Peter Chowla, Financing for Development Office, UN DESA.
3rd Eurasian Corporate Governance Roundtable Shareholder Rights, Equitable Treatment and the Role of the State April 17-18, 2002 hosted by Securities and.
Copyright© JSE Limited Challenges for Our Markets Nicky Newton-King Deputy CEO, JSE Ltd AMEDA Conference October 2008.
UNDP Ukraine1 Investment Climate in Ukraine: Old and New Challenges Iryna Akimova, Chief Economic Advisor, UNDP Ukraine ABCDE, Amsterdam, th of May,
UNDP & the Business SectorBureau for Resources and Strategic Partnerships Business, sustainable development and the MDGs: A changing landscape.
ASEAN Beyond the Crisis: Prospects and Challenges of Recovery Aladdin D. Rillo Head, Finance Integration Division The ASEAN Secretariat Regional Conference.
PRESENTER: Dr. Ishmael Yamson DATE: September 23, 2010.
Harmonizing Legal and Regulatory Frameworks to Facilitate Regional Domestic Bond Market Development “The East African Community Experience” Presentation.
McKinsey Global Institute (top 600 cities) has identified three critical factors why larger Cities have more advantageous conditions for economic success:
Supporting Tourism Investment in the Pacific Islands: IFC’s Sector-based Approach to Overcoming Investment Climate Barriers Trinnex Meeting 30 August 2010.
Accelerating Africa’s Growth and Development to meet the Millennium Development Goals: Emerging Challenges and the Way Forward Presentation on behalf of.
OVERVIEW OF CAPITAL MARKET DEVELOPMENT IN THE LAC REGION Carolin A. Crabbe Infrastructure and Financial Markets Division INTER-AMERICAN DEVELOPMENT BANK.
Challenges for China’s economic reform: from the perspective of a holistic approach Pingfan Hong 3 rd Annual NYU Conference on Chinese Capital Markets.
The African Development Bank’s Contribution to Aid for Trade (AfT) Henri A. MINNAAR NEPAD, Regional Integration and Trade Department WIPO Conference on.
ANSI Conference on U.S. Leadership in ISO and IEC Presented by Dr. Carmiña Londoño Group Leader, Global Standards and Information Group, National.
Reflections on the Global Financial Crisis and the Role of the IMF Robert Weissman, Essential Action Washington, DC November 17, 2008 Robert Weissman,
Role of finance in economic growth process: A comment KP Krishnan 1.
Coherence in Global Policy Making for Sustainable Economic Development and Poverty Reduction Michele Ruiters, PhD Institute for Global Dialogue (IGD)
1 The role of Government in fostering competitiveness and growth Ken Warwick Deputy Chief Economic Adviser UK Department of Trade and Industry.
 The mission of the OECD is to promote policies that will improve the economic and social well- being of people around the world.  The OECD provides.
CANTO 24th Annual Seminar Enhancing competitiveness in the Caribbean through the harmonization of ICT policies, legislation and regulation Bahamas, July.
1 FIN 408 International Investment Factors affecting Risk and Return Size and Number of International Open-end Funds Global market Correlations Correlation.
ASEA CONFERENCE, ACCRA GHANA OCTOBER 2007 CROSS BORDER INVESTMENTS INVESTOR/ISSUER EXPERIENCE THE CASE OF ETI.
Creating a Healthy Financial System through Regulation By Dr. Kingsley C. Moghalu Deputy Governor, Financial System Stability Central Bank of Nigeria.
1 SECURITIES REGULATION: TRENDS AND CHALLENGES Washington D.C., April, 15 th 2003 Dr. Doğan CANSIZLAR Chairman of the Capital Markets Board of Turkey Chairman.
Financing Development in Africa: Review of Progress and Challenges.
Fairness and the Washington Consensus Joseph E. Stiglitz Century Foundation April 7, 2000.
Why China should Still be Cautious in Capital Account Liberalization? Ming Zhang Institute of World Economics and Politics Chinese Academy of Social Science.
11. Globalization: interdependencies, harmonization and societal specificity.
Private Sector Expectations towards NAMA Financing Latin America and Caribbean Regional NAMA Workshop 14 th September 2015.
PAN AFRICAN CONSULTATIVE FORUM ON CORPORATE GOVERNANCE THIRD MEETING DAKAR SENEGAL 8TH – 10TH NOVEMBER 2005 THE CHALLENGE FOR AFRICAN COUNTRIES TO SET.
International Financial Management Vicentiu Covrig 1 Globalization and the Multinational Firm Globalization and the Multinational Firm (chapter 1)
….. 4th CUTS-CIRC Biennial Competition, Regulation & Development Conference & CREW Project Final Conference. Relevance of Competition & Regulatory Reforms.
PRODUCTION TRANSFORMATION POLICY REVIEWS (PTPRS) A POLICY ASSESSMENT AND GUIDANCE TOOL FOR POLICY DIALOGUE AND KNOWLEDGE SHARING ECA-ECLAC-OECD High Level.
MINISTRY OF FINANCE ECONOMIC STABILITY AND INVESTMENT PLAMEN ORESHARSKI MINISTER OF FINANCE March 11, 2008.
Competitiveness of Small Enterprises: Clusters, Business Environment and Local Development October 30, 2007 Intergovernmental relations and local competitiveness.
ACHIEVING COMPETITIVENESS, INCLUSIVE GROWTH AND SUSTAINABILITY IN REAL SECTOR DEVELOPMENT IN NIGERIA: THE TOUGH CHOICES IN AN ERA OF CHANGE Presented By:
How we are working to develop the Stock Market? Sergio Luiz Cerqueira Silva São Paulo Stock Exchange WASHINGTON, APRIL 15, 2003.
DEPARTMENT: AGRICULTURE COMPREHENSIVE AFRICA AGRICULTURE PROGRAMME (CAADP) Siphiwe F. Mkhize PhD Minister (Agriculture) Embassy of South Africa.
E3G - Third Generation Environmentalism 2ºC Global Scenarios Prepared for: Department of Energy and Climate Change August 2011.
International Business.  International business comprises all commercial transactions that take place between two or more regions, countries and nations.
Challenges for Deeper Integration in SADC
How we are working to develop the Stock Market?
INTRODUCTION TO CORPORATE GOVERNANCE.
ISO & Developing Countries
Overview of recent economic and social conditions in Africa
Global Value Chain and Trade in Value Added
STOCK EXCHANGES TROUGH THE PROJECT SEE LINK
European External Investment Plan
Prof Mahani Zainal Abidin
By Michael Mbate UN Economic Commission for Africa
Reshaping Economic Geography Messages on Regional Integration
Scaling up of Renewable Energy for Power Generation in the Western Balkan countries
Presentation transcript:

1 Demutualizing African Stock Exchanges: Challenges and Opportunities Presented at the 9 th Annual ASEA Conference, Cairo, September 10-12, 2005 By Sam Mensah SEM International Associates Limited, Ghana

2 Objectives Evaluate factors driving demutualization Relevance in African context Establish preconditions for demutualization Assess readiness of African stock exchanges to demutualize

3 Reasons to Demutualize Improved governance Investor participation Competition Globalization and consolidation Unlocking stock exchange value

4 Implications of Demutualization Regulation Relationship with regulator Self-regulation Financial Viability Process Role of government Role of other stakeholders

5 Preconditions for Demutualization Sufficiently liberalized financial market Market justification based on a critical mass of trading activity that supports financial viability Support of government in managing process

6 African Stock Exchanges Small markets by international standards – Market capitalization to GDP as low as 4% in some markets Low liquidity Limited listings Preponderance of listings by subsidiaries of multinationals has “domesticated” listings i.e. no incentive to migrate or cross list

7 Other Factors Affecting Performance Macroeconomic Setting Regulatory framework Market infrastructure Human resource base Investor base

8 Noneconomic Factors in Africa Government objectives for creating stock exchanges are important: Emerging market fever A badge of inclusion Geography Populist symbolism Politics of economic reform Stock exchanges are national institutions driving policy objectives of government Government policy critical in demutualization decision

9 Assessing demutualization drivers for Africa Relevant drivers Improved governance Investor participation Not so relevant drivers Competition Global consolidation Resource mobilization Unlocking stock exchange value

10 Assessing Preconditions Markets are still not sufficiently liberalized, e.g. Ghana Of 20 exchanges, only about 7 are likely to be financially viable as demutualized exchanges Governments who support exchanges financially are not in a hurry to demutualize if policy objectives are being met in mutual form

11 Conclusion Larger and financially sustainable African markets may be ready for demutualization Majority of stock exchanges should move cautiously Demutualization should be seen as long- run objective

12 In the meantime… Some benefits of demutualization can be captured by reengineering of mutual stock exchanges Corporate governance: increase representation of nonmembers Continue to improve trading and post-trade technology to stay competitive Pursue ongoing market liberalization

13 And finally…. Avoid donor pressure Seize control of the demutualization agenda