Capital market development and participation between Africa and the Caribbean

The Jamaica Stock Exchange (JSE) recently welcomed a delegation from the African country of Sierra Leone in continuation of its building relationships with other countries across the globe.

The JSE welcomed the delegation in a bell ringing ceremony, as part of its thrust to accelerate growth across the region and the African continent to provide benefit to the investing public. The JSE has long since recognised the value of the African Connection and believes that, despite the distance, common bond, objectives and growth through commerce, buoyed by capital, should galvanise Jamaica and its African counterparts in working together to build sustainable countries. 

The JSE also believes that, in spite of the distance, connections can be done through the capital markets and through technology, the distance to link markets, aided by the various exchanges and depositories within the Caribbean can be removed.

Finding common grounds to partner

Speaking at the ceremony, JSE Managing Director Marlene Street-Forrest argued: “The forging of this relationship was timely, as both countries were seeking to expand our borders and find common grounds on which to partner. We believe that objective obtains for Sierra Leone as well. The JSE has been collaborating well with many of our sister exchanges within the Caribbean and with Exchanges in North America, UK and the Caribbean.”

As such, the JSE appreciates this is a gateway for galvanising successful business relationships, not only for the exchange but for shared business communities. While legislative frameworks are in place to encourage mutual trade, Street Forrest emphasised that “it will be the boots on the ground and the relationships that are forged that will encourage capital market development and participation between Africa and the Caribbean”.

Sierra Leone Minister of Tourism and Cultural Affairs, Dr Memunatu Pratt told the audience that, “Sierra Leone has been trying for years to develop an effective and efficient stock exchange. However, this meeting demonstrates our stock exchanges working together. Sierre Leone does not only have historic linkage, but trade and educational opportunities.“

Continuing, the minister said: “Based on the success of your stock exchange, we believe this will assist in strengthening our relationship moving forward. As we move forward we have a lot to learn from you. We cannot operate in isolation in this world as this is a digital world with digital marketing. Sierra Leone has gold, diamond, an extensive agricultural industry and a fast developing business partner, we have also an effective donor system. However, our international partners want to see a successful stock market and shortly we will be able to sign an MOU in this field.”

Nigerian experience

For his part, former Head of the Nigerian Stock Exchange, Bamofin Abimbola Ogunbanjo congratulated the JSE on its demutualisation, which was done in 2009. He stated that the Nigerian Stock Exchange took that initiative to demutualise just two years ago, a process he presided over.

He congratulated the JSE in its constant drive to develop its securities market and said he was especially pleased with the development of the Private Market and the US Denominated Markets. Bamofin argued that the Nigerian Stock Exchange, with its modern trading platform, has a lot of opportunities for collaboration with the JSE, given our cultural similarities and historical ties.

This, he argued, “presents numerous opportunities for collaborations, especially in the areas of dual listing, joint trading and capacity building along with a good regulatory framework are just some of the areas for partnership. This collaboration can provide a platform for companies to raise capitals and expand their reach”.

In his response, JSE Chairman Julian Mair told the audience: “I am happy for this occasion as this is a relationship which we need to see develop and blossom and whatever path it takes we are here to support and ensure that it works for the growth and development of our various countries. Let us hope the next time we are together we will celebrate a cross listing or an actual transaction across our markets.”