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Bawumia calls on capital markets in West Africa to protect investors from systemic risks

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Dr. Bawumia

Vice President Mahamudu Bawumia has urged capital markets in West Africa to develop regulatory insurance policies to guard traders from systemic dangers.

He expressed the assumption that the event of regulatory insurance policies would avert arbitrariness, promote threat sharing and encourage extra competitors to make sure tangible outcomes.

Vice President Bawumia gave the recommendation when he opened the 2021 West Africa Capital Markets Convention in Accra on Tuesday.

He stated the time was ripe for Africa to construct and develop robust capital markets to assist finance the supply of public items, present capital for entrepreneurs and for personal sector improvement.

The 2-day biennial convention introduced collectively members from the Financial Group of West African States (ECOWAS) to share concepts and strategise to boost the capital market.

It was organised by the West Africa Securities Regulatory Affiliation (WASRA) on the theme: “Deepening and Strengthening the Capital Markets throughout West Africa by Efficient Regulation”.

The Vice President was of the conviction that technical regulatory actions that met sound prudential ideas and practices would guarantee a profitable capital market integration.

He, subsequently, urged the WASRA and its members to make one of the best use of the instruments introduced by the Worldwide Organisation of Securities Fee to construct coherent supervisory frameworks and well-established channels of communication throughout nations.

“The infrastructure aspect of capital market integration requires that WASRA helps the member jurisdictions within the implementation of its requirements by a spread of initiatives,” Dr Bawumia stated.

The Vice President attributed the “disruptive results” of the worldwide economic system to the COVID-19 pandemic and the Russia-Ukraine disaster.

He referred to as for profound rethinking to make sure efficient monetary supervision, noting that the pandemic had introduced in its wake new enterprise fashions, merchandise, and providers on technological improvements worldwide.

“There may be monumental potential for better competitors, interoperability, operational effectivity by price saving and in addition improved threat administration,” he added.

Dr Bawumia additional referred to as for the strengthening of the bonds of financial cooperation to unravel development and alter the narrative of a continent endowed with each pure and human sources but clinging on to the strings of help.

To alter the narrative, capital markets ought to work in direction of integration and adoption of applied sciences that take care of regulatory and compliance necessities successfully.,

Dr Bawumia inspired the WASRA to benefit from the Pan African Fee and Settlement System (PAPSS), which was launched this yr, to facilitate the cost of transactions in native forex amongst nations within the West African sub-region to facilitate the combination course of.

He urged them to capitalise on the African Continental Free Commerce Space to cut back the incidence of poverty and improve long-term development.

Mr Ken Ofori-Atta, the Minister of Finance, in a speech learn on his behalf, stated Ghana’s capital market began operations greater than 30 years in the past with 9 corporations.

It had made main strides with about 38 listed corporations, with a market capitalisation of over GH¢64 billion on fairness bars and GH¢187 billion on excellent securities on the Ghana mounted earnings market as at March 2020.

The whole commerce quantity from January to March 2022 was over 280 million shares valued at GH¢300 milion, representing a rise of 39.68 per cent and 96. 77 per cent, respectively.

“On the finish of 2020 when COVID-19 was biting arduous, the inventory market recorded one in all its most profitable years in quantity commerce of 695 million shares, the second highest within the alternate’s 30-year historical past whiles worth traded was 575 million, the third highest,” Mr Ofori-Atta stated.

Supply: GNA

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