The Managing Director, Goldbanc Management Associates, Mr Olu Abayomi Sanya has warned that economic integration would remain elusive until the African Union (AU) addressed the continentâ€™s economic challenges. He made the remark at the ongoing 13th African Securities Exchanges Association (ASEA) conference on Friday in Abuja.
Sanya said that the lack of the political commitment by the 53 AU member-nations was the greatest challenge hindering the integration of African exchanges. He, however, noted that integration would maximise funds, efficiency and economies of scale for many organisations in the continent.
The Goldbanc boss charged ASEA members to proffer solutions to how to manage the problem of different equipment, operational rules and poor investment awareness in Africa. He argued that the integration of national stock exchanges would only be possible if ASEA provided leadership in educating the elite and the investing public in the continent.
According to him, Africaâ€™s inability to manage its huge pension funds and stimulate liquidity through the establishment of new companies may render the ASEA dream a stillbirth. in his remarks, Mr Jean-Paul Gillet, Director-General, Bourse Regionale des Valeurs Mobilieres (BRVM), Abidjan called on ASEA members to join in the crusade for the speedy growth of African economies. Gillet said that integration would only be meaningful to
Africa and Africans if their leaders partnered with the private sector and various stock exchanges on the way forward.
Drawing from his experience of managing the integrated exchanges of Francophone West Africa, Gillet called for a diversified economy which he said would enable all integrating economies to benefit from the process. â€œWe notice that when companies from one country dominate an integrated exchange, it breeds suspicion and a complex which are natural,â€ he said.
The National Coordinator, Independent Shareholdersâ€™ Association, Mr Sunny Nwosu warned ASEA members against relying on foreign investments, instead of developing a culture of local investments. Nwosu argued that the association owed it as a duty to stimulate local investments by providing adequate investor education. He said that such initiatives would form the basis for Africans to effectively participate in future continental economic activities. Nwosu added that only enlightenment would enhance good corporate governance, integration of exchanges, demutualisation and economic growth in the continent.