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| UNDP to spotlight African stock markets
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Dakar, Senegal (PANA) -
There is an urgent need for African stock
markets to seek international recognition if they desire to
attract foreign investors, the UNDP warned Tuesday in Dakar at
the private sector conference on the New Partnership for Africa's
Development (NEPAD).
UNDP associate administrator, Zephririn Diabre told a press
conference that Africa's portion of international capital flow
was insignificant, largely because investors were the least aware
of established financial markets in the region.
Diabre recalled the surprise he pulled on the business community
in Singapore recently, when he mentioned the Abidjan-based West
African bourse.
He pointed out that the experience of sub-regional stock markets
in Africa was uncommon in other regions, hence that other regions
has the potential of attracting foreign investors because of
their wider market outreach spanning companies in several
countries.
Emphasising the role of stock markets in international capital
flow, the UNDP executive said Africa's bid for foreign investment
would get a boost if stock markets across the continent
--national and regional-- get spotlighted at Wall Street.
To that end, Diabre announced that a conference slated for next
November in New York would be an occasion to market Africa's
stock markets, with UNDP assistance.
He regretted that certain African financial and economic
indicators were of high value, but little known to investors
outside.
He cited how it was only recently acknowledged that Botswana's
debt management performance was of a higher rating than that of
Japan's.
The UNDP official said helping African countries access foreign
capital was but one of three areas the agency has begun to
forcefully emphasise in its partnership with the continent.
He noted that NEPAD has made a big hit on donors, who are for the
first time displaying a strong disposition to assist, as
indicated at the last UN conference on development financing held
in Monterrey, Mexico.
The Monterrey conference emphasised the role of private capital
as a complement to public investment if Africa desired to attain
two-digit growth rates.
Diabre said the UNDP was bent on helping African countries to
establish enabling environments for private investment through
the enforcement of good governance.
He said the agency has in the last 35 years highlighted issues of
democracy, the separation and balance of power, human rights,
reliable judiciary as well as fair business regulations and
transparency in the management of public contracts.
"If 35 years on, investors still worry about governance in
Africa, it is not because our efforts have failed," Diabre
said,pointing out that the job of stepping up governance is an
ongoing process.
"The US is reputed for its level of corporate governance, yet
they now have the scandal at ENRON to deal with," he argued.
Efforts at good governance will give foreign investors the
minimum assurances they need to take a chance on Africa, Diabre
added.
Meanwhile, the two-day private sector conference NEPAD ends
Tuesday.
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| Dakar - 16/04/2002 |
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