VII. A. Automation: PROMOTING STOCK MARKET DEVELOPMENT IN AFRICA
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Free Download - 6.0 References: Microfinance in Africa - Experience and Lessons from Selected African Countries By International Monetary Fund |
The results from the previous sections show that African stock markets are small, illiquid,
with infrastructural bottlenecks and weak regulatory institutions. Despite these problems,
stock markets in Africa have helped in the financing of the growth of large corporations but
there is little evidence of broader economic benefits. How do you make the stock market
more beneficial to African countries? A number of propositions have been suggested to help
develop stock markets in Africa. These range from the need to increase automation,
demutualization of exchanges, regional integration of exchanges, promotion of institutional
investors, regulatory and supervisory improvements, involvement of foreigner investors, and
educational programs. Most of these propositions involve substantial benefits as well as cost
outlays. This section looks at the future of African stock markets by examining policy
options for promoting stock market development in Africa.
A. Automation
Automation is also expected to help reduce the costs and inefficiencies in African stock
markets and increase trading activity and liquidity.9 Automation helps to speed up operations
and activities of exchanges and reduces cost associated with manual systems. In addition,
automation makes it easier to extend trading days and hours due to less cumbersome
procedures. Automated trading also eliminates the need for trade intermediation since
investors can log onto systems to monitor markets and also trade on markets, thus bypassing
the use of brokers.
Automation of the trading system usually either precedes or is preceded by the adoption of a
central depository system (CDS). Under the CDS system, there is total elimination of risks
such as the loss, mutilation and theft of certificates associated with holding and trading of
paper-based securities of investors. CDS systems also reduce errors and delays associated
with paper-base Automation is an expensive venture and has huge budgetary implications for African
governments. This might explain why most African stock markets have found it difficult to
fully automate their systems.10 However, with the proliferation of electronic communication
networks (ECNs) and alternative trading systems (ATS), the cost of automation is gradually
reducing.
Other African stock exchanges can adopt the Namibian model whereby the NSX of Namibia
uses the trading system of the JSE of South Africa. The markets could also adopt the CDS
systems in similar manners. Admittedly the operational procedures of such an approach are
likely to be difficult in the absence of currency convertibility issues and harmonized financial
systems.
Automation is particularly important if African stock exchanges aim at integration. Without
automation the much touted benefits of regional stock market integration is likely to be lost.
IMF Working Paper
African Department
Stock Market Development in Sub-Saharan Africa: Critical Issues and Challenges
Prepared by Charles Amo Yartey and Charles Komla Adjasi
August 2007
VII A Automation PROMOTING STOCK MARKET DEVELOPMENT IN AFRICA - To learn more about this author, visit International Monetary Fund's Website.
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Kim CastleWith nearly two decades in the advertising and design business, with clients like Domino's Pizza, General Motors, Direct TV, Pedigree, Wolfgang Puck, Higher Octave Music, Hollywood Celebrity Products, Disney, and Paramount, as well as thousands of entrepreneurs around the world define, structure, communicate, and position their business for greater profits, BrandU(R) co-creators Kim Castle and W. Vito Montone discovered that entrepreneurs could experience the same power that big brands command for a fraction of the cost with the world's only process-based results-drive Integral approach to business creation. BrandU(R) is helping entrepreneurs grow with the power of extreme clarity from idea...to brand...to market(TM) and helping one million entrepreneurs become successful and whole so that they can make a difference in the world. Are you one of them? If you want to experience clarity all the way to the bank(TM), get started now at http://www.brandu.com. - Visit Kim Castle's Website |
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Dave KurlanDave Kurlan is a best-selling author, top-rated speaker and thought leader on sales development. He is the founder and CEO of Objective Management Group, Inc., the industry leader in sales assessments and sales force evaluations, and the CEO of David Kurlan & Associates, Inc., a consulting firm specializing in sales force development. Dave has been a top rated speaker at Inc. Magazine's Conference on Growing the Company, the Sales & Marketing Management Conference and the Gazelles Sales & Marketing Summit. He has been featured on radio and TV, including World Business Review with General Norman Schwarzkopf, in Inc. Magazine, Selling Power Magazine, Sales & Marketing Management Magazine and Incentive Magazine. He is the author of Mindless Selling and Baseline Selling – How to Become a Sales Superstar by Using What You Already Know about the Game of Baseball. He created and wrote STAR, a proprietary recruiting process for hiring great salespeople, and he writes Understanding the Sales Force, a popular business Blog and is a contributing author to The Death of 20th Century Selling and 101 Great Ways to Improve Your Life, Volume 2. - Visit Dave Kurlan's Website |
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David AchesonDavid Acheson is the founder of DCJA Consultancy. DCJA Consultancy is a management consultancy business specialising in B2B sales consultancy. They offer bespoke and packaged sales consultancy including Sales Optimisation Review, Interim Sales Management, Sales & Marketing Review, 1:1 Sales & Management Staff Analysis, Management Training, Solution Sales Training, Creation of New Pay Plan, KPI's, run Customer Feedback Campaigns, assist with Recruitment, Coaching, Appraisals and set up Strategic Marketing Campaigns. David spent his early career in accountancy and then moved into sales in 1982, working in Office Equipment, IT, Advertising, Training, Outsourcing and Consultancy. He has held many Senior Positions in SMBs and Global Organisations including Head of Sales Operations & Head of Business Development. His knowledge, skills and great experience of the Sales Industry has led to David making keynote speeches and running educational sessions to key businesses through organisations including The Chamber of Commerce and Business Link. - Visit David Acheson's Website |
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Linda RichardsonLinda Richardson is the Founder and Executive Chairwoman of Richardson, a global sales training and performance improvement company. As a recognized leader in the industry, she has won the coveted Stevie Award for Lifetime Achievement in Sales Excellence and she was identified by Training Industry, Inc. as one of the “Top 20 Most Influential Training Professionals.” Ms. Richardson is credited with the movement to Consultative Selling and is the author of ten books on selling and sales management, including Sales Coaching — Making the Great Leap from Sales Manager to Sales Coach, and Stop Telling, Start Selling. She teaches sales and management at the Wharton Graduate School of the University of Pennsylvania and the Wharton Executive Development Center. Linda is a frequent speaker at industry and client conferences, has been published extensively in industry and training journals, and has been featured in numerous publications, including The Wall Street Journal, Forbes, Nation’s Business, Selling Power, Success, and The Conference Board Magazine. Learn more about Richardson's sales training and performance improvement solutions at http://www.richardson.com web - Visit Linda Richardson's Website |
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