By Ayomide Otitoju
The African Development Bank (AfDB) on Tuesday kicked off a series of high-level meetings with African development finance institutions and private sector partners to design a New African Financial Architecture, aimed at bridging the continent’s development financing gap.
Convened at the AfDB headquarters in Abidjan, over 50 representatives from regional and continental banks, stock exchanges, and development finance institutions are participating in the two-day consultations, convened at the invitation of AfDB President Dr Sidi Ould Tah.
“As the architects of Africa’s capital markets, you are custodians of financial institutions and catalysts of our continent’s future,” Dr Ould Tah said at the opening session with heads of African securities exchanges, private equity, and venture capital funds.
The discussions, a first of their kind with African stock exchanges, will explore the role of capital markets in long-term financing and reforms needed to mobilize African capital. Dr Felix Edoh Kossi Amenounve, CEO of the West African Regional Stock Exchange (BRVM), highlighted the need to capitalize African pension funds to better meet financing needs.
Represented institutions include the African Exchange Linkage Project (AELP), Rwanda Stock Exchange, Mozambique Stock Exchange, Cabo Verde Stock Exchange, Nairobi Stock Exchange, Tunis Stock Exchange, BRVM, Central African Stock Exchange, Casablanca Stock Exchange, and Ghana Stock Exchange.
Dr Ould Tah described capital markets as “the bedrock upon which long-term, sustainable economic growth is built,” noting their role in providing sovereigns and businesses with diversified funding sources while expanding investor opportunities.
Key discussions focused on private equity and venture capital financing, enhancing African investment funds, and increasing support for SMEs, which account for nearly 90% of businesses and over 60% of jobs in Africa but face limited access to risk capital.
Other topics included sustainable finance, market digitalization, attracting investment capital, financial education for youth, and leveraging fintech to expand market opportunities. Donald Waweru Wangunyu, Non-Executive Director of the Nairobi Stock Exchange, stressed regional coordination to scale up reforms, while Sonia Ben Frej, Chairwoman of the Tunis Stock Exchange, highlighted regulatory convergence and outdated regulations as key challenges.
The consultations aim to enable financial institutions to mobilize additional financing for Africa, reducing reliance on overseas development assistance. Dr Ould Tah outlined a three-pillar approach:
Supporting regulatory authorities, stock exchanges, and intermediaries through technical assistance and policy-based operations.
Diversifying savings mobilization and market participants to deepen credit and investment markets.
Enhancing research, training, and policy dialogue for Africa’s capital market stakeholders.
“The development of capital markets requires a collective effort from each of us,” Dr Ould Tah said.
The meetings will continue on Wednesday with heads of African Development Financial Institutions to further advance the blueprint for Africa’s financial future.
