THE African Development Bank (AfDB), is working on the integration of stock exchanges as way to help mobilise resources domestically for infrastructure financing and drive up industrialisation in the continent.
The President of AfDB, Dr Akinwumi Adesina, told the ‘Daily News’ in an exclusive interview at the 39th SADC Summit concluded over the weekend that the Bank is currently working to integrate Johannesburg Stock Exchange (JSE), and Namibian Stock Exchange (NSE) and link them to Nairobi Securities Exchange (NSE), Nigeria Stock Exchange (NSE), with the Egyptian Exchange (EGX).
“The integration of finan- cial markets is another thing which is very important in resource mobilisation to help African countries finance own infrastructure projects domestically and drive up industrialisation in the region,” he said.
He added, “The Bank is working to help integrate the two major stock exchanges of Johannesburg Stock Exchange and Namibian Stock Exchange, linking them with other African stock exchanges as an important source of domestic resource mobilisa- tion.”
Dr Adesina noted further that there are two major countries that count in terms of sovereign funds and pension funds are largely in Namibia and South Africa.
The SADC region needs significant amount of resources to finance a lot of its infrastructure currently about 62 mega infrastructure projects that have been prioritised working with AfDB to spur industrialisation growth.
“Thus, we need to mobil- ise a lot of resources domestically in order to be able to do that,” he said.
The Bank is currently supporting the establishment of a 1.2 billion US dollars SADC Regional Development Fund to help mobilize domestic resources for regional infrastructure financing and industrialization.
“This will help SADC region to mobilise its own resources for infrastructure development,” noting that in May this year, the Bank approved 2.0 million US dollars for the operationalization of the Fund, including project preparation for agriculture, pharmaceuticals and mining. “I therefore urge member states of SADC to accelerate their ratification of the Regional Development Fund agreement so the Fund can start doing its important work,” he said.
AfDB, a multilateral development finance institution, was founded in 1964 and comprises three entities namely the African Development Bank, the African Development Fund and the Nigeria Trust Fund.