Despite growing interest and investment in Africa, the lack of complete and good quality information about the African stock markets is contributing to a continued hesitance by international public companies to list on Africa’s stock exchanges and for foreign investors to invest in domestic companies listed on African stock exchanges. KPMG’s “Listing in Africa” report, aims to provide comprehensive information about selected African markets and stock exchanges thereby providing international public companies, foreign investors and fund managers and private equity investors who are invested in Africa with valuable insights into listing and investing in securities across key markets in Africa, namely, Botswana, Kenya, Mauritius, Namibia, Nigeria, South Africa, Zambia and Zimbabwe.
When considering a stock exchange, some of the main considerations by potential issuers include, inter alia:
There are a number of African regulatory structures that work well. For example, the Botswana Stock Exchange has a strong regulatory framework that ensures markets run efficiently and the capital markets continuously perform well due to strong and consistent political governance, sound national economic management and social stability.
The Nairobi Stock Exchange was voted as the most innovative stock exchange in Africa in 2013.
The Zambian securities market has been designated as a “unified” market and virtually all trading is conducted through the stock exchange which has a number of benefits including enhanced liquidity and market depth.
Something along these lines may be beneficial in South Africa in light of the Financial Services Board’s recent directive and guideline in terms of which all companies that facilitate over-the-counter trading in their shares are required to register themselves as an exchange
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