Business News of 2014-05-15

Private sector should turn to capital market - Terkper

Finance Minister Mr Seth Terkper, has asked the private sector to take full advantage of the capital market to expand their operations to create more employment opportunities for the youth.

He said while many multinational companies in the world have accessed the capital market to become global giants, the case of companies in the West African sub-region is different.

Mr Terkper was speaking at the opening session of the maiden West African Capital Market Conference, organised by the Chartered Institute of Stockbrokers Nigeria and Global Mandate Consulting.

The three-day conference on the theme: Positioning the West African Capital Markets for Effective Regional Economic Development, brings together capital market stakeholders in the sub-region to network and discuss issues affecting West Africa with the view to further enhance the growth and development of the Markets.

Mr Terkper said if capital markets are fully utilised, it would provide access to relatively cheaper sources of long-term capital towards industrial growth and infrastructure.

In this direction, Mr Terkper reiterated government commitment to a robust and transparent market to provide support to the country’s agriculture, and industry as well as infrastructure to support economic progress.

A developed capital market that is linked to the various sectors of the economy as a provider of long-term capital is a sine qua non to achieving the government’s vision of shared growth and sustainable, he said. He said a well-developed domestic capital market is the surest way to raise needed resources for infrastructure development in the country.

Dr Suleyman Ndanusa, Chief Executive Officer, Global Mandate Consulting Limited and Chairman of Securities and Exchange Commission, said the West African Capital Market conference is to complement efforts through partnership with operators.

He said it is important the sub-region cooperate and develop policies to transform capital and financial markets to be able to attract global investments. Mr Adu Anane Antwi, Director General of the Securities and Exchange Commission of Ghana, in a speech read on his behalf said the institution is undertaking initiatives to develop Ghana’s capital market.

One of the initiatives is to work with other capital markets regulators and stock exchanges in the sub-region to ensure the integration of the capital markets. Mr Antwi said an integrated capital market in the sub-region would boost economic development, growth in the markets and make them attractive to investment flows.

Proponents of the integration agenda say with the capital markets coming together, local companies will have a deeper pool to raise capital, enable the movement of capital across the region, create flexibility and efficiency for issuers and investors.

Harmonisation of listing, trading and settlement rules among member- countries is essential for the integration efforts of the sub-region. The Bourse Rgionale des Valeurs Mobilires (which features eight Francophone countries), Ghana Stock Exchange, Nigeria Stock Exchange and Sierra Leone Stock Exchange are the initial participating markets.