ASEA 2025: Adapting to global shifts by democratising Africa’s capital markets

Africa stands at a turning point. The upcoming ASEA 2025 Conference, themed “Adapting to Global Market Shifts: Strategies for Resilience and Growth for African Markets of the Future,” comes at a time when the continent must rethink how financial systems can better serve its people. Across Africa, capital markets remain relatively underdeveloped compared to global peers. South Africa’s market capitalisation stands at over 246 percent of GDP, while Nigeria’s is around 29 percent, Kenya’s 12 percent, and Rwanda’s 31 percent. This disparity points to a deeper issue: on the supply side, few businesses use capital markets to finance their operations, relying instead on banks or informal systems. On the demand side, Africa’s savings rate—averaging 15 to 17 percent—lags behind the 30 to 40 percent achieved by Asia’s high-growth economies during their transformation. The reasons range from low incomes and limited access to banking services to widespread financial illiteracy. Yet the challenge is not necessarily a lack of resources, but rather limited access. Asset ownership in Africa remains concentrated among a small elite or foreign investors. Meanwhile, small and medium enterprises (SMEs) make up more than 80 percent of most African economies and employ the majority of the workforce. The opportunity lies in connecting this entrepreneurial base to domestic savings and investments. Rwanda offers a useful example through its Capital Market Investment Clinic, which has helped local corporates and SMEs raise capital through the stock market in recent years. The Clinic has supported dozens of companies to become investment-ready, sparking interest in listings, bond issuances, and other market instruments. The results are tangible: hundreds of millions of Rwandan francs have been mobilized, while participating firms gained improved governance, visibility, and access to capital. By demystifying the listing process and offering technical guidance, the Clinic has shown that even smaller firms can successfully tap public markets—a model that could be replicated across the continent. Technology offers another breakthrough. Sub-Saharan Africa has over 1.1 billion registered mobile money accounts, with about 500 million active users. Platforms such as MoMo Pay and M-Pesa have demonstrated that citizens can be integrated into the financial system at scale. Extending this inclusiveness to government bonds, equities, and collective investment schemes—linked even to the African diaspora—would be a powerful step toward true democratization of capital. Another avenue is the privatisation of public assets, reserving a stake for ordinary citizens. Listing one or two public enterprises each year could stimulate domestic stock exchanges, create IPO pipelines, and encourage private firms to follow suit. Equally, policies compelling public utility companies—such as telecoms, banks, insurers, cement and brewery firms, and power utilities—to offer a portion of their shares to the public could deepen markets. This would promote local ownership, reduce foreign capital flight, and strengthen domestic savings. Regulators, too, have a role to play. A more developmental approach—one that enables rather than polices—would encourage participation by issuers, intermediaries, and investors. Overregulation in small, fragmented markets risks stifling growth before ecosystems mature. Sustainability must also remain central. Environmental, Social, and Governance (ESG) frameworks are now critical for attracting long-term capital. Global investors increasingly prefer markets that prioritize transparency, accountability, and environmental resilience. Embedding ESG principles would position African markets competitively while ensuring that growth benefits local communities. As we look ahead to the ASEA Annual Conference set for November 26–28, 2025 in Kigali, the gathering will be more than an industry event—it will be a call to action. Leaders, policymakers, and investors must commit to democratising public assets so every citizen can own a piece of their economy; expanding savings channels to lift savings rates closer to 30 percent of GDP; strengthening capital markets as a buffer against global shocks; embedding ESG principles for sustainable and inclusive growth; and scaling models like the Investment Clinic and Ibuka across African markets to bring SMEs into the heart of capital formation. Africa’s future depends on shared vision and inclusion. A continent of 1.4 billion people cannot afford markets where only a few participate. By democratising capital, mobilizing domestic resources, and prioritizing sustainability, Africa can build markets that truly serve all. The writer is the current President ASEA and Chief Executive Officer, Rwanda Stock Exchange

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ASEA 2025: Adapting to global shifts by democratising Africa’s capital markets