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Enacy Mapakame-Business Reporter

Regional stock exchanges have committed to enhancing the capital markets and increase their allure as preferred investment destinations for both local and foreign investors as well as attract new listings.

At their recently held 58th bi-annual meeting of the Committee of SADC Stock Exchanges (CoSSE), the secretariat emphasised on the need to enhance financial integration and developing the green bond market.

Last month, the FSD Africa and CoSSE signed a co-operation agreement to support the development of a SADC green bond market, an agreement that will support the SADC’s 16 member countries to leverage domestic and international capital markets for investment in green projects.

Among others, the partnership programme will support member countries and both private and public sectors to issue green bonds, creating a favourable ecosystem and improving knowledge and capacity for sustainable investments.

Also on the agenda at the virtual bi-annual meeting – chaired by the CoSSE chairman and Botswana Stock Exchange chief executive officer (CEO) Mr Thapelo Tsheole – were issues around financial inclusion as well as cross border trade between SADC stock exchanges.

“On the agenda for this meeting were several discussion points germane to the progressive development of the capital markets of the SADC region, chief among them being funding commitments for projects focused on enhancing financial integration and developing the regional green bond market. Presentations were made by FSD Africa principals on the roadmap of the SADC Green Bond Programme partnership between CoSSE and FSD Africa, previously announced on the 11th of March 2021. 

“Deliberations also concentrated on the implementation of the Support to Improving the Investment and Business Environment (SIBE) Programme spearheaded by the SADC Secretariat in conjunction with the European Union (EU). Progress updates of other associated SADC Sub-Structures pertaining to capital market issues were discussed, including Financial Inclusion, Cross-Border Trade between SADC Stock Exchanges,” said CoSSE.

CoSSE is made up of 14 stock exchanges in SADC, operating in 13 SADC states and these are Stock Exchange of Angola (BODIVA), Botswana Stock Exchange (BSE), Stock Exchange of Mozambique (BVM), Dar es Salaam Stock Exchange (DSE), Eswatini Stock Exchange (ESE), Financial Securities Exchange (FINSEC), Johannesburg Stock Exchange (JSE), Lusaka Stock Exchange (LuSE), Seychelles Stock Exchange (MERJ), Malawi Stock Exchange (MSE), Maseru Securities Exchange (MSM), Namibian Stock Exchange (NSX), Stock Exchange of Mauritius (SEM) and the Zimbabwe Stock Exchange (ZSE).

According to consolidated data on SADC stock exchanges 2020 fourth quarter performance shows regional exchanges are starved of new equity listings with only eight recorded across the region. Of these, MERJ accounted for five listings while DSE and JSE accounted for a single listing each.