Having listened to (and thoroughly enjoyed) the 42-page dissertation on the exotic topic of “Integrating West African Capital Markets” by Adu A. Antwi, director-general of Ghana’s Securities and Exchange Commission, at this year’s Pearl Awards Annual Lecture, I can clearly say the paper is the product of remarkable intellect combined with exceptional professionalism. In presenting his case for integration, Antwi leaves us no choice than to urge speedy implementation rather than more talking or discussions, seminars, committees, workshops, councils, etc ad infinitum.
Indeed, the idea of integrating West African capital markets appears to have been overtaken by the prospects of a quantum leap as suggested in a report by CNN on “Inside Africa” recently. The main thrust of the report was the integration of the entire African continent. Africa is abundantly blessed with vast resources and the potential for development as well as prosperity is huge. At the tail end of the programme, Bob Geldorf who had hitherto been a champion of aid for Africa was singing a different tune: “What Africa needs is investment, not aid.” By the same token, what West Africa urgently requires is to deliver real value and commensurate returns on investment if integration is to have relevance rather than remain a fanciful adventure.
In any case, we have been presented with sufficient evidence that Antwi and his colleagues have carried out a sufficiently robust feasibility report as well as vision statement, mission statement, strategic planning, computer model, financial model, road map, and timelines and milestones. We are also entitled to believe that the team of professionals at their disposal would have documented the “SWOT” analysis (Strengths; Weaknesses; Opportunities; and Threats) in respect of the integration process – from conception to final destination.
Whether we are speaking of West Africa or the entire continent of Africa, the major challenge is revitalization. Our reality check will no doubt persuade us that in most (with very few exceptions) of the countries that we are seeking to integrate, the economy is in a shambles while the political template is at best uncertain, if not in turmoil. In addition, we have to factor in four critical issues: idiosyncratic leadership; corruption; insecurity; and poverty, joblessness and hopelessness. We also have to contend with the not inconsequential problem of language – Francophone versus Anglophone – and the attendant clash of cultures.
These are the countries that make up West Africa (ECOWAS Region) and the “lingua franca” of each of them: Nigeria (English); Ghana (English); Sierra Leone (English); Gambia (English); Senegal ( French); Burkina Faso (French); Guinea (French); Cote D’Ivoire (French); Republic of Togo (French); Mali (French); Cape Verde (Portuguese); Guinea Bissau (Spanish); Liberia (American/English); Niger (French); Chad (French); Benin (French).
In any case, regardless of how we intend to proceed, we have to commence with the profound issue of source of investment flow into the capital markets – domestic savings, remittances from the diaspora, or Foreign Direct Investment.
There is another category which is somewhat sensitive. It relates to the staggering amounts which have been looted from West Africa (and the African continent). The figures being quoted are truly mindboggling. Here, we cannot afford to confuse the rigid morality of the pulpit with the ruthless, aggressive and flexible morality of the market place/capital market. However, let us be clear about one thing – whether it is the development of West Africa or Africa in its entirety, we are the masters of our own fortune. We must be ready to accept responsibility for our development. Nobody else will do it for us. Why should they?
Also, we must recognize what is patently obvious – while turmoil and uncertainty prevail, the beneficiaries are those who are plundering our resources. It is to their advantage that we should be distracted and be pre-occupied while brigandage and impunity run riot. The pattern is the same all over – oil theft in Nigeria (estimated at 400,000 barrels per day!); illicit smuggling of diamonds in Sierra Leone; gold in Mali; bauxite and aluminium in Guinea.
The relevance of this to the capital market is that for the various stock exchanges to merge successfully, the fundamentals must be right. Theoretically (and hopefully in practice), market prices are the product and reflection of the underlying respective economies and resources as well as expectation of future prosperity.
Here, we must pause and reflect on the anguish of those who were victims of the recent financial meltdown and the collapse of numerous stock exchanges. Some of them, particularly those who engaged in margin loans, were wiped out. Indeed, it is no secret that some went to their graves early while others contemplated suicide when their spirits were at their lowest ebb. To now implore them to embrace the merit of integration of capital markets in West Africa is an act of monumental insensitivity and is tantamount to rubbing salt into injury.
Perhaps I should add that for the last three weeks, CNN and several other television channels have been showing heart-wrenching stories of desperate refugees from Africa ready to risk all – wives and children included – to cross in vastly overcrowded boats from Libya or Tunisia just to get into Europe. Invariably, the boats capsized and the rate of attrition has been terrible. Nevertheless, those who survive are ecstatic in anticipation of the promised land which they wrongly believe to be better than what they left behind in West Africa and other parts of the African continent.
It is also instructive that the European Union commissioner in Nigeria, Michel Arrion, recently disclosed that there are more African professionals living in Europe and America than in Africa itself.
At the risk of stating the obvious, we are not likely to make much progress with integration unless we address the critical issue of our image in the international marketplace. We need to urgently re-connect with the rest of the world in terms of law and order as well as accountability and transparency. The perception is that Africa is a jungle where man and beast compete for supremacy.
Again, when President Muhammadu Buhari joined the G7 meeting recently on the invitation of the seven most powerful nations in the world – United States of America, Britain, France, Japan, Germany, Canada and Italy – the number one item on the agenda was corruption followed very closely by insecurity, particularly the Boko Haram insurgency. These are fundamental issues which have to be tackled alongside the integration of our capital markets.
J.K Randle
