While South Africa’s stock exchange remains dominant on the continent, smaller exchanges are leapfrogging ahead in terms of incentives and technology to attract small investors.
For example, Cameroon has extended the three-year tax break on companies listed on its stock exchange to last for as long as they remain listed.
And people in Rwanda can buy and sell government securities using their mobile devices through an “eSub” platform developed by their central bank. M-Akiba in Kenya uses M-Pesa to enable people to buy government bonds.
The Malawian Stock Exchange launched a WhatsApp portal to distribute critical information about companies listed on the exchange to ordinary retail investors.
A wave of change
New stock exchanges are also emerging, with Lesotho preparing for its first listing. Sekhametsi Investment Consortium will be the first company to list on the Maseru Stock Exchange.
Ethiopia’s parliament has also endorsed a proclamation that will pave the way to create a securities exchange.
Many other countries are passing regulations that will make their stock exchanges more transparent and more diversified in terms of securities they offer.
