Africa, a land of massive economic potential

'‹'‹'‹The stories of Africa and London Stock Exchange have long been intertwined.

We understand the risks and rewards of the continent and feel committed to playing a significant part in the African growth story.

Africa represents one of the largest growth opportunities in the world today.

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According to African Development Bank Group’s 2014 annual report, growth on the continent was forecast at 4.5 per cent for 2015, strengthening by a further 5 per cent in 2016. At such high growth rates, Africa will remain the world’s second fastest growing continent, after Asia.

But, to realise its staggering potential, African economies need a sustainable and transparent funding mechanism to deliver financing to the thousands of ambitious, entrepreneur-led companies taking root across the continent.

To support this evolution, last month we launched an Africa Advisory Group, bringing together 12 distinguished business leaders, policymakers and investors from across Africa, to discuss the challenges and opportunities presented by the development of the continent’s capital markets.

Over two years, the Africa Advisory Group will present a new leadership study, delivering empirically grounded, actionable and Africa-specific policy recommendations to positively shape the development of the continent’s markets.

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As a company, we strongly believe in collaborating with emerging market stock exchanges, helping them build the infrastructure and technology they need to be as fully functioning and effective as possible.

Because only when this is in place, are they able to efficiently carry out their primary purpose: the provision of capital to companies to help them grow, innovate, create new jobs and ultimately drive economic prosperity.

London Stock Exchange Group is in a leading position to support Africa’s capital markets evolution.

Today, there are 113 African companies listed or trading in London – more than on any other international stock exchange.

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Together, they have a total market capitalization in excess of US$200 billion and in the last ten years they have raised more than $26 billion in London.

Our MillenniumIT capital markets technology, which underpins our own trading platforms, is also used by 12 African exchanges including Johannesburg Stock Exchange, Africa’s largest; Botswana Stock Exchange and Casablanca Stock Exchange, to name a few.

Morocco in particular is one country we are closely working with, supporting its ambition to become a regional financial hub in the continent and become a leading gateway connecting Europe and the African markets.

In June 2014, we signed a strategic agreement with Casablanca Stock Exchange to share our expertise on the full exchange business chain, from listing to trading, and from clearing to settlement and custody, with a commitment to boost Casablanca’s capital markets and allow Morocco to unlock its full financial potential.

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And last year we agreed to support a Moroccan version of our successful business growth programme, ELITE.

According to the World Bank, micro, small & medium sized enterprises account for more than 90 per cent of all enterprises in Morocco, a clear indication of their significance to the future growth of the economy.

LSEG’s Africa Advisory Group will meet in Casablanca in September to showcase our partnership with the Casablanca Stock Exchange as a model for adapting in other regions.

What is clear from our experience around the world is the importance of developing efficient capital markets infrastructure to countries’ long term prosperity.

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We will continue to work alongside developed and emerging markets, helping them and their companies grow.

And in Africa, our new Advisory Group will be at the forefront of supporting the evolution of the continent’s markets.

LSEG’s Africa Advisory Group’s members include Naguib Sawiris, the CEO of major Egyptian conglomerate Orascom, and ABC Orjiako, chairman of Nigerian oil firm Seplat.

It also includes governmental and international leaders such as Chinelo Anohu-Amazu, director general of the Nigeria Pension Commission, and Fatima Hara Acyl, commissioner of African Union.

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A number of investors are also members including Ian Greenstreet, founder and chairman of Infinity Capital Partners, a global corporate finance firm with significant investments across Africa, and Sev Vettivetpillai of global corporate finance firm Abraaj Group.

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