Africa’s Capital Markets Face Urgent Call for Integration at ASEA 2025 in Kigali
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The 28th African Securities Exchanges Association (ASEA) conference in Kigali warned that fragmented capital markets expose Africa to demographic pressures, digital disruption, climate risks, and declining development aid. Rwanda Finance Minister Yusuf Murangwa noted bank lending dominates 70% of corporate financing, while only 14 African exchanges exceed 10% market cap-to-GDP versus a 100% global average, per ASEA data.
ASEA President and Rwanda Stock Exchange CEO Pierre Celestin Rwabukumba highlighted the African Exchanges Linkage Project (AELP), backed by Afreximbank, to pool liquidity and expand cross-border trading. Rwanda positions its Kigali International Financial Centre and governance record as regional hub assets. Former AfDB President Donald Kaberuka cited $3-4 trillion in domestic savings trapped in short-term assets, urging equity market deepening amid population growth, digital competition, geopolitical risks, currency instability, climate shocks, and aid cuts. He called for public education on capital markets as wealth-creation tools.
Shallow equity markets limit enterprise financing and increase external shock vulnerability. AELP integration aims to cut costs and offset aid declines, with Rwanda demonstrating governance-driven capital attraction.
