The ECOWAS economy is predicted to grow from $777 billion to about $900 billion after the full completion of the West African Capital Market Integration (WACMI).
Director General of the West African Monetary Institute (WAMI), Dr. Olorunsola Olowofeso, announced this at a capacity-building session for financial market operatives.
He said the integration which is an initiative by the Institute is to establish an open platform for the listing, trading and settlement of capital markets securities as well as transactions for West African countries.
Dr. Olowofeso explained that a fully integrated capital market will improve liquidity access, strengthen economies, and ease capital access to businesses in the West African economic block.
“By the time we integrate the capital market, it will increase the GDP of West Africa from $777 billion to over $800 billion to $900 billion and that would be a plus to Africa in terms of job, liquidity and infrastructure development“
He furthered that the institute is working to assist other member countries to build a robust capital market infrastructure in Gambia, Guinea, Liberia, and Sierra Leone to ensure the smooth running of the programme.
On whether an open capital market platform in the West African Economic block will derail the growth of Ghana’s securities market, the Director General of the Securities and Exchanges Commission, Rev Daniel Ogbarmey Tetteh said the integration would rather deepen and enhance Ghana’s capital market and create healthy competition.
“So within the contest of an integrated market, it means that we will be exposing the benefits of the Ghana market to other practitioners. So I think that we shouldn’t be worried about the integration, rather it will open up to better opportunities which will make us competitive”.
He added that the Securities and Exchanges Commission is embarking on a capital market master plan which will tie into the West African initiative to strengthen the local market.
Chief Executive Officer of the Ghana Stock Exchange Abena Amoah, also stated that the move will offer improved diversification of funds which could reduce risk.
“It will enable fund managers to structure a fund which will enable you to diversify portfolios in different markets. This improves diversification and concentrated risk management tools.”