Capital Markets Critical For Sustainable Devt

Head of Investment Banking at Stanbic Bank Ghana, Kobby Bentsi-Enchill, has reiterated the importance of capital markets in sustainable development.

Speaking at the third biennial West Africa Capital Market Conference (WACMaC) in Lagos Nigeria, Mr. Bentsi-Enchill said capital markets provide crucial financial support for both governments and corporates for sustainable infrastructure.

Speaking on the ‘Role of Capital Markets in Fueling Sustainable Development in West Africa, he noted that although capital markets are a significant source of funding and crucial for sustainable development globally the West African sub-region is yet to fully tap into its immense potential.

He indicated that beyond the typical sources of funding that governments would employ, it is possible for governments to issue sovereign bonds in the capital markets to raise funds for sustainable infrastructure development, social programmes and other key green initiatives.

He added that for the private sector, the capital markets provide an avenue for corporates to access funding for their capital expenditure, projects development and other long-term needs.

Mr. Bentsi-Enchill said to ensure the effectiveness of West African capital markets regulatory and legal framework must be enhanced.

“The more we review and update our regulations to ensure it is keeping with global best practices, the more likely our will develop,” he added.

He also called for increased financial literacy and awareness especially among the investor community so they will invest not just for yield but also to drive sustainable development.

“The third is investor protection, which is key because that generates confidence in markets. The fourth is political stability, which encourages players to take a long-term view of markets and adapt their financing approach accordingly. The last thing is enhanced integration across our regional financial market infrastructure and harmonization of regulation across the sub-region,” he added.