ASEA Conference 2014-NSE

1. AFRICAN DEVELOPMENT BANK GROUP
The African Development Bank Group: Towards Vibrant Capital Markets in Africa
Stefan NALLETAMBY
Director of Financial Sector Development
ASEA 2014 Conference, Kenya

2. AFRICAN DEVELOPMENT BANK GROUP
PRESENTATION OUTLINE
AFRICAN CAPITAL MARKETS LANDSCAPE
1
KEY COMPONENTS TO DEVELOP EXCHANGES IN AFRICA
2
AfDB’sSTRATEGY
3
FINANCIAL SECTOR DEVELOPMENT STRATEGY 2014-2019
4

3. AFRICAN DEVELOPMENT BANK GROUP
Global Landscape
•Financialmarketglobalizationandregionalization
•Technology and the rising pace of innovation
•Thechangingroleofgovernments
•Marketdemandforgreatertransparency

4. AFRICAN DEVELOPMENT BANK GROUP
African Capital Markets Landscape
Stock Exchanges –Few Listings, Low Liquidity, Relatively Costly
Transaction Costs

5. AFRICAN DEVELOPMENT BANK GROUP
African Capital Markets Landscape 2
Bond Markets –Extremely active and profitable
Financial Markets are improving and positively contributing to financing of the economy

6. AFRICAN DEVELOPMENT BANK GROUP
Key Components to Develop Exchanges in Africa
Financial Literacy/Industry Talent Pool
Regulation & Supervision
Infrastructure/ Automation
Demutualization Considerations
Regional Integration
Institutional investors
Issuers
Intermediaries
Developing trust between stakeholders is key

7. AFRICAN DEVELOPMENT BANK GROUP
Overview of the AfDB
AfDBGroup
African Development Bank
African Development Fund
Nigeria Trust Fund
In Brief
Established 1963
53* RMCs
25 Non RMCs
26 Representations
Our Clients
Middle-Income Countries
Low-Income Countries
Post-Conflict & Transition States
* Excluding South Sudan
Public & Private Sector

8. AFRICAN DEVELOPMENT BANK GROUP
AFDB’s Strategy for 2013-2022
The Bank’s Ten-Year Strategy aims at inclusive & “green” growth

9. AFRICAN DEVELOPMENT BANK GROUP
AFDB’S FINANCIAL SECTOR DEV STRATEGY 2014-19
FINANCIAL SYSTEMS GOVERNANCE
Increasing access to the underserved, particularly women and youth
PILLAR I
Broadening and deepening Africa’s financial systems
PILLAR II
PARTNERSHIP
Strengthen partnership with MDBs, regional development banks, and bilateral institutions for maximum impact in RMCs
INNOVATION
Take lead in promoting technology toward universal access and innovative products and services
Vibrant, innovative, robust, and competitive financial systems nationally and regionally

10. AFRICAN DEVELOPMENT BANK GROUP
OFSD’s DIVISIONS
Financial Institutions
Trade Finance
Financial Inclusion
Financial Markets
•Increasing the financial sector’s responsiveness to the demand for long-term capital
•Strengthening the capacity of financial institutions
•Supporting the development of DFIs
•Facilitating the adoption of sound business and financial management practices within the assisted institutions.
•Work with retail banks, DFIs and MFIs in deploying innovative and commercially viable business models
•Develop financial infrastructure and systems to address access
•Support to Microfinance and Households access to finance
•Design an enhanced set of financial products
•Develop trade finance structures in response to market requirements in Africa
•Promote partnership with key trade finance actors
•Broadening anddeepening of the financial sector in the long-term finance market and in creating an enabling environment for Regional Financial Integration.
Supporting Financial Stability is a Cross-cutting theme

11. AFRICAN DEVELOPMENT BANK GROUP
AfDB: Support to Capital Markets DevelopmentBroadening and deepening the long-term finance market and creating an enabling environment for Regional Financial Integration
ADVISORY
AFMI
Cross Cutting Initiatives
Scope of Activities
LENDING
Developing yield curves
Structured vehicles targeting inst’linvestors
WAEMU Financial Market Support
Capital MktsInfrastructure
Capital market ecosystem institutions: rating agencies
Development of Secondary Debt Markets
Sovereign Wealth Fund Implementation
Insurance & Pension Reforms
Regulation and Supervision of Capital Markets
AFMD
Knowledge dissemination tool to promote bond markets
ADBF
African Domestic Bond Index
African Domestic Bond Fund

12. AFRICAN DEVELOPMENT BANK GROUP
THANK YOU
MrStefan NALLETAMBY, Director Financial Sector Development Department