African stock markets boost EA economies

THE CAPITAL Markets Authority, has had a remarkable impact over the last decade promoting, developing and regulating the capital markets industry in Uganda. The CMA has had a positive impact, not just in Uganda, but more broadly within the East African region.

There are many indicators of progress, and one of them is the performance of stock markets in countries like South Africa, Nigeria, Botswana, Mauritius, and Ghana over the last few years. South Africa's stock exchange had a market capitalisation of $585 billion in 2006.

But in East Africa, the stock exchanges have also performed very well. Regional economies have grown in real terms from $12.2 billion in 1980 to $41 billion in 2006, and almost every country's economy is growing by 5-6 per cent per year.

East African nations like Uganda, Kenya, Tanzania, Burundi and Rwanda form a natural trade cluster that should function in a harmonised, and efficient way.

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