ASEA Conference Brings African Stock Markets Closer: Charles Boamah

Charles Boamah, Vice President of the African Development Bank, stated that the African markets have been witnessing great economic transition. AfDB seeks to support African transition, boost economic merger between Africa’s economies and focus on unique financing schemes after many ruling systems have changes in many countries. Boamah stressed on the importance of making optimal use of population without relying largely on banks.

AfDB is owned by all 54 African countries including South Sudan although it is not a member as well as 24 countries outside Africa and AAA-rated institutions.

The African Securities Exchanges Association Conference brings the member countries closer in the ripe time to merge their investments. AfDB’s board of directors met from some days to create a ten-year term strategy to consult all stakeholders in countries to draw up Africa’s aspirations and set clear plans to fulfill such aspirations.

Boamah confirmed that African countries have many resources and achieve growth rates from 5% to 6% which are close the growth rates achieved by Asian countries. Some commodity prices rose because of the economic reforms in some African countries, he explained.

He emphasized that accounting governance is an important factor. The bank targets developing growth and fostering political stability in African countries to make them invest their resources especially energy resources such as oil and gas as well as the human factor.

Boamah stressed the importance of improving infrastructure, IT infrastructure and education.

The bank has recently turned to adopt long-term strategies and plans to achieve economic and social growth.

Boamah stressed on two important factors which are the economic and social integration in the region and the security strength. However, the Arab Spring countries have witnessed some changes that have diverted attention from the optimal use of the current resources.

As to developing the infrastructure, Boamah elucidated that Africa has achieved growth in the infrastructure by 4%, even it reached 14% in China, but we are working on promoting the quality of the infrastructure to increase the growth rates in Africa.

The bank is working on spreading the accounting-governance to support the sustainable development in order to protect the resources, Boamah said; adding that in the wake of the French revolution the bank decided to support the skills and technology fields, as well the necessity of developing the infrastructure, regional integration, skills, and technology, paving the way for a big investments base to expand in the markets.

The bank keens on bolstering the African countries and the investing environment for these countries to be more attracting for foreign investments. And the support will be transferred gradually for the neighborly countries in the framework of economic integration.

Charles Boamah also talked about the initiatives of the African money market, and the African capitals, which contributed to developing the African markets. They take in large database about all the African markets. The initiative will launch its website in the Q1 of 2013.

He referred to another program, by which the bank finance the housing in the framework of supporting the infrastructure; adding that the program jointly with the African Union support the hefty ventures in Africa. The local stock markets may help them to develop the infrastructure, and facilitate the processes of lending and borrowing between the countries.

There are many initiatives to support the private sector and African accreditation offices and bourses, Boamah said; pointing to another conference in Senegal where the bank will participate in to follow all the African countries. The bank needs $ 93 billion annually to develop the infrastructure in Africa.