The Next Wave: Escaping the bog
- A theory suggests that local capital mobilization is the primary obstacle to building functional capital markets in Africa.
- There is a consensus on the need to mobilize more local capital, but disagreements exist on whether to focus on fast-growing or slow-growing segments.
- The previous focus on local IPOs has diminished, revealing a lack of urgency in developing private secondary markets.
While the push for local capital mobilization is commendable, it is crucial to address the systemic issues that hinder liquidity and exits in African capital markets. Without a comprehensive strategy that includes both mobilization and structural reform, efforts may lead to disillusionment among investors and stifle the growth of the ecosystem.
