Mobilise funds for projects from capital markets, Ruto urges Africa
What you need to know:
- Mr Ruto said it was time that Kenya and other countries stopped exporting raw materials to developed economies and instead mobilised resources to process them.
- “For instance, the transformation of the National Social Security Fund into a pension fund will increase Kenyans’ level of savings by more than 400 per cent,” he said.
- “Intra Africa trade is the lowest in the world, at less than 15 per cent, while in Europe it is in the range of 60 per cent. Without trading with ourselves we cannot realise development,” he said.
African economies should mobilise funds from capital markets in the region to carry out development projects.
Deputy President William Ruto said funds from capital markets were cheaper than those from commercial banks, and urged countries in the region to come up with ways of sourcing development cash from the money markets.
“The region has great opportunities in value addition, agro-processing, industrialisation and manufacturing but with funding only from banks, no meaningful development can be realised since interest rates are too high,” the Deputy President said Monday.
He said that to realise development, African countries should increase trade within the region. “Intra Africa trade is the lowest in the world, at less than 15 per cent, while in Europe it is in the range of 60 per cent. Without trading with ourselves we cannot realise development,” he said.
He was addressing the 18th African Securities Exchanges Association (ASEA) conference at Leisure Lodge in Diani, Kwale County.
PROCESS RAW MATERIALS
Mr Ruto said it was time that Kenya and other countries stopped exporting raw materials to developed economies and instead mobilised resources to process them.
“We have the opportunities right here. It is upon us to utilise them to finance what will ultimately change this continent,” Mr Ruto said.
The DP noted that in Kenya, the government was committed to promoting the growth of capital markets by mobilising domestic savings and investments for the benefit of homegrown firms.
“For instance, the transformation of the National Social Security Fund into a pension fund will increase Kenyans’ level of savings by more than 400 per cent,” he said.
The DP praised efforts undertaken to transform Africa’s economy by forming regional blocks to bring together various countries in key regions.
Kwale governor Salim Mvurya urged the Nairobi Securities Exchange to take advantage of devolved units to create awareness and broaden investment.
Mr Mvurya, who is also the Council of Governors vice chair, said it was only through awareness that counties could be in position to bridge the gap between local and international investors.
“A lot is happening in various counties and we have integrated development plans that will need funding. But most of us are not aware of the investment opportunities in capital markets,” he said.
Tourism and East African Affairs Cabinet Secretary Phyllis Kandie encouraged the use of pension funds for infrastructure development.
