West Africa: Capital market integration expected to drive sub-region’s GDP to $900bn – Dr Olowofeso
Dr Olorunsola Olowofeso, the Director General of the West African Monetary Institute (WAMI), has revealed that the integration of capital markets in the West African sub-region is projected to have a substantial impact on economic growth.
According to Dr Olowofeso, this integration will result in a remarkable increase in the Gross Domestic Product (GDP) of the region, reaching an estimated value of $900 billion. Such growth would represent a significant surge of $167 billion when compared to the current West African GDP of $733 billion.
Speaking to norvanreports on the sidelines of the Capacity Building and Sensitisation of regulators and industry players in the capital market on the implementation of Phase 2 of the West African Capital Markets Integration (WACMI) Project on Tuesday, July 18, 2023, Dr Olowofeso emphasized the transformative potential of this initiative asserting the integration of capital markets is expected to generate several positive outcomes, including enhanced liquidity within the sub-region’s capital markets, leading to increased investment opportunities and improved financial transactions.
“Successfully integrating capital markets in West Africa will lead to an increase in the region’s GDP from $733bn to between $800bn and $900bn. It will boost liquidity on our capital markets, increase job employment and make the region’s ICT infrastructure robust,” he remarked.
Moreover, Dr Olowofeso highlighted the job creation potential associated with the integration. As capital markets thrive and attract more investors, the sub-region is poised to experience a boost in employment opportunities. Additionally, the Director General underscored the importance of a robust information and communications technology (ICT) infrastructure, which would be fostered through the integration, further bolstering the region’s economic landscape.
The West African Capital Markets Integration (WACMI) Project aims to harmonize and integrate capital markets across West African countries, promoting efficiency, encouraging investment, and facilitating economic growth. By aligning regulatory frameworks and creating a seamless and interconnected marketplace, the project seeks to tap into the untapped potential of the West African sub-region’s capital markets.
The projected surge in GDP signifies the economic prospects that lie ahead for West Africa. As financial integration takes hold, the sub-region is poised to unlock new avenues of growth, attracting both domestic and international investors seeking to capitalize on the expanding market opportunities. This development aligns with broader efforts to strengthen regional integration and foster economic collaboration within Africa.
The West African capital markets are poised for transformation, and the anticipated GDP increase underscores the promising future that awaits the sub-region. As the implementation of the WACMI Project progresses, West Africa solidifies its position as an emerging economic powerhouse, ready to leverage its vast potential and reap the benefits of a unified and thriving capital market.
