Oteh urges African exchanges to list SMEs

The Vice President and Treasurer of the World Bank, Ms Arunma Oteh, has called on the African Securities Exchanges Association (ASEA) to work towards the listing of at least 44,000 Small and Medium Enterprises (SMEs) out of the estimated 44 million currently operating on the African continent.

Oteh, a former director-general of the Securities and Exchange Commission (SEC), made the call in Lagos while delivering a speech at the ongoing 22nd annual conference of ASEA.

This year’s ASEA conference is themed ‘Champions on the Rise: Africa’s Ascension to a More Sustainable Future’ and Ms Oteh is among 44 high profile individuals slated to speak during the 2-day event.

Oteh said, small and medium scale enterprises are key drivers of any economy, while stressing the need for stock exchanges across Africa to list small businesses, adding that doing so would help to deepen the markets.

“Unfortunately, they often face major challenge bothering on lack of access to finance; something that could easily be taken care of through listing,” she argued.

Oteh further emphasised the need to advance Africa’s infrastructural base as well as diversify the economies on the continent in order to guarantee sustainable development.

She said: “If we focus in areas of opportunities that abound whether in agriculture, services, retail, technology, particularly emerging technology, financial services, and hospitality, sustainability will be more granted. We must also foster innovation and entrepreneurship and I believe that securities exchanges are the epicentre of the ecosystem.”

Also speaking at the conference, Mr Oscar Onyema, Chief Executive Officer of the Nigerian Stock Exchange and President of the African Securities Exchanges Association, spoke about the benefits of the strategic relationship the alliance fosters, including a $1.5 million grant that has been set up and targeted at African Exchanges Linkage Project among other important projects.

He said: “These programmes are critical levers of success for ASEA and we aim to continue to broaden and deepen our relationships in order to create increasing value for members and the African financial market.”