By Bassey Udo
Operators of African capital markets must embrace collaboration among themselves to ensure a stronger interconnection within the continent as well as development of new products.
The Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, made the call on Monday in Abuja while signing a Memorandum of Understanding with the Capital Markets Authority of Rwanda towards a working partnership.
The MoU stipulated that “each Party shall, within its respective mandate and Applicable Laws, cooperate with the other Party in areas, including but not limited to: investor education and capital market development; exchange of information on regulatory and market developments; capacity building, training, and technical assistance; and cooperation on enforcement and supervisory matters of mutual interest.”
Also, the pact stated that the two parties recognized the importance of cooperation in fostering confidence, innovation, market development, and sound practices within their respective capital markets, as well as in supporting regional and international engagement where relevant.
In his speech, Dr. Agama said SEC was ready to actively collaborate with African nations to harmonize regulations, promote cross-border listings, and enhance investor protection across the continent.
Agama expressed excitement over the opportunity offered by the pact for SEC to help Rwanda develop its capital market, stressing the need for cooperation in Africa, by investing in each other’s market and growing the continent.
In cooperating with each other, Agama said the markets would collaboration as Africans to focus and build a stronger interconnection.
“The time is now for us to look inwards. We appreciate the strength of the Rwandan economy as we are aware of the flow of finance, commerce and other great things your President has done to rekindle the real value of the African race.
“On our part, we have a very strong capital market structure and we want to see what role the capital market can play in all of this,” he said.
Agama noted that the capital market was the nerve centre of the economy, adding that the citizens need to understand how to use it to create wealth, to improve their quality of life.
The capital market,he pointed out, was an enabler to the development of the economy, adding that SEC believed there was so much for Rwanda to learn from Nigeria to help strengthen its capital market.
Expressing excitement about what the future holds for both countries, Agama said SEC was willing to assist to contribute to the success of other nations economies
“Our relationship and Integration will go a long way in building both markets and make life better for our citizens. As we forge a common front, we encourage government to use long-term capital for long-term projects. The capital market is the solution to raising funds for long-term infrastructure development.
“We see the capital market as a solution provider to move the economy forward. We want to make Africa better and a destination of choice. We want to jointly work with other regulators to achieve it,” the SEC DG said.
In his remarks, the Chief Executive Office of CMA Rwanda, Mr. Romeo Ngaranbe, expressed his delight at the relationship between the two regulators, saying that the capital market had evolved and people would rather invest in the capital market.
He said he was in Nigeria to learn from SEC as the country has a more advanced capital market, adding that he was convinced Rwanda would gain some useful lessons that has aided the development of the Nigerian capital market.
