Africa's Growing Number of Stock Exchanges Face Challenges
[mp3]https://server1.vnkienthuc.com/files/3/Media/Africa-Stock-Exchanges-Web-Version.mp3[/mp3]
Even as African [A]economies[/A] post strong growth figures, [A]outpacing[/A] most developed nations, th/e continent's stock exchanges face many challenges, from national politics to weak currencies.
A [A]protest[/A] in South Africa targeted the Johannesburg Stock Exchange.
Youth leader Julius Malema wants more key [A]industries[/A] nationalized. And he wants [A]government[/A] and business to create jobs. More than 50 percent of South African youth between 18 and 25 are [A]jobless[/A] - as in most of Africa.
When he has made such [A]demands[/A] before, stock prices here have dropped.
Noah Greenhill, the exchange's head of marketing, says such [A]political[/A] debate doesn't make [A]markets[/A] unsound.
"The United States have people saying stuff that is vehemently against what the president of the party of the day says and nobody goes, 'Well, we cannot invest in America because so and so is vehemently [A]opposed[/A] to what is being said by the ruling party and our president'." Greenhill said.
African exchanges do struggle [A]because[/A] of weak currencies and slow foreign [A]investment[/A] in a tough world economic climate.
There are other problems: some [A]economists[/A] say there may be too many [A]exchanges[/A] in sub-Saharan Africa, with more than 20, and many have limited hours.
Still, Greenhill says it is a mistake to ignore Africa, with its growing middle class and rich resources.
"It is the land of [A]opportunity[/A]. Look at the telecommunication companies. Look at the banking services, retail, those kinds of businesses with these huge opportunities. Make no mistake, there are risks, but there are risks in doing [A]business[/A] in Greece, in Portugal, in Italy, in Ireland, in Spain," Greenhill said.
The world's fastest growing [A]economy[/A] this year is Ghana - topping 13 percent. Growth like that, Greenhill and other market experts say, can outweigh the problems Africa's stock markets face.
Nico Colombant | Washington
November 25, 2011
