Maravi

Nkanza welcomes formation of regional stock exchange

Nkanza welcomes formation of regional stock exchange
By Fridah Zinyama
Wednesday August 01, 2007 [04:00]

LUSAKA Stock Exchange managing director Beatrice Nkanza has welcomed the move by COMESA to form a regional integrated stock exchange provided it adds value to the structures already in place.

Recently, COMESA member countries stock exchange chief executives met in Cairo to brainstorm the benefits that would result from the integration of the stock exchanges in the region.

Nkanza in an interview said the move was welcome as the member countries had already started moving towards integration.

“There is value in the integration of the stock exchange as it is that are offered in each member country,” she said. “We welcome COMESA’s suggestion to create a regional stock exchange as long as it did not replicate the efforts being made by the African Stock Exchanges Association (ASEA), the SADC Committee of Stock Exchanges and EAC Capital Market Development Committee in this regard.”

Nkanza explained that the integration of the stock exchanges in the region would go a long way in resolving some of the problems of lack of adequate securities and shares to be floated.

“The main objective of COMESA trying to have an integrated regional stock exchange is to try and harmonise the activities of the stock exchanges in the region and to facilitate a wider market so that there are more players involved in the stock exchanges,” she explained. “We would like a situation where a person who is in South Africa can buy shares being floated on LUSE and vice verse.”

And COMESA director for trade Dr. Charles Chanthunya said the integration of the markets into large regional entities would aid in tapping additional savings than would have been the case at the national level, and hence improve the allocation of scarce resources.

“Through a multiplier process, such increased investments would stimulate and accelerate the process of economic growth in the region,” Dr. Chanthunya said.
He explained that once the region managed to integrate their stock exchanges, there would be a resultant improvement of external financing which could encourage the creation of regional projects with foreign equity participation.

Labels: BEATRICE NKANZA, COMESA

posted by MrK @ 3:41 AM