Despite operational challenges in 2015, analysts say that African capital markets are expected to see a gradual pickup in growth in 2016. The markets are expected to raise Initial Public Offers (IPOs) worth $3.1 billion. The president of African Securities Exchange Association, ASEA and Chief Executive Officer, Nigerian Stock Exchange, NSE, Oscar Onyema disclosed this in Lagos. He said many countries in sub-Saharan Africa are expected to see a gradual pickup in economic growth in 2016.
According to research by Reuters, African initial public offers (IPOs) are set to raise over $3 billion this year, doubling the amount raised in 2015 and the highest value raised in any year since 2010. Oscar Onyema emphasized that sub-regional integration efforts such as the West African Capital Market Integration in West Africa, Committee of Southern African Stock Exchange in Southern Africa and the East African Community are important initiatives that have potential to unlock demand among issuers and boost liquidity.
An International law firm, Baker & McKenzie had earlier announced that African companies are likely to launch more than a dozen initial public offerings (IPOs) this year, defying commodity price drops and capital flight from emerging markets. Read more about the outlook for African capital markets here.