In the past one decade, stock exchanges have increased from a low of 10 to over 18. The number could increase in the coming years as more countries try to reap into the underlying benefits of the stock market. According to the United Nations Development Programme (UNDP), even when adjusted for risk, investment in Africa has yielded high returns.
As markets grow, there is more to offer to investors, who in the recent past have greatly benefited from this growth. Recent growth has offered a huge benefit to the African investors (both corporate and retail) leaving almost nothing to the foreigners and Africans living outside Africa.
Here is the sad reality. It has been argued in the past that Kenyans in Diaspora contribute billions of shillings that end up being invested in the United Kingdom and
As the hype still rides high, one wonders: why do our fund managers put so much credit on the offshore markets but leave out emerging markets in Africa?
The Asian Tigers' potential seemingly lies in their ability to edge themselves by continuous product development and friendlier government policy. Indeed, the United States has already positioned itself to getting major services from India which was previously sailing on a similar wavelength as
The recent steps to automate trading in securities at the Nairobi Stock Exchange (NSE) were in good taste. It has however taken years to bring it into place and still requires time to move the terminals from the trading floor to the brokerage firms and investment banks. This is an indication that there is less or slow knowledge based development in our market.
On another angle, there seems to be a small number of market makers. The few brokerage firms, investment banks, fund managers and investment advisers have not done much research to come up with new products. Even
The aggressiveness exhibited by the South African bourse, JSE, should be replicated by other markets that envisage a dynamic market. Recently, they launched a campaign that sought to woo the best blue chip companies in Africa to list at the JSE. Most multinationals would still consider
The recent changes and increasing capitalization of African markets is an indication that a lot of potential is yet to be seized. As reform efforts take full gear, there will be a lot of dynamics and greater heights being reached. But the negative aspects that bar Kenya from its potential as an offshore market have to be rooted out.