The Central Bank of the Republic of Guinea (BCRG) organized, this Friday, December 23, a national workshop to validate the draft law on the stock exchange. The objective of this meeting, which brought together several executives from financial institutions and microfinance and development partners, is to present the bill on the Stock Exchange, a component of the Support Project for the Modernization of the Financial Sector -PAMSFI-.
According to the Director General of Credit and Foreign Exchange at the BCRG and Chair of the PAMSFI Steering Committee, the workshop is part of the support project for the modernization of the private sector financed by the African Development Bank (AfDB). ) to support Guinea in the implementation of targeted monetary and financial reforms.
“This project, explains Mrs. Estelle N’Diaye, aims to develop the financial market [grâce] in support of the Central Bank on the one hand in setting up the financial marketnotand on the other hand, in the implementation of the exchange rate policy. It also aims to modernize the financial infrastructure and improve the governance of the banking sector and the microfinance sector, in particular through the establishment of a reporting system for the supervision of banks and microfinance institutions.”.
The study enabled the monetary authorities to have a reference situation in terms of the development of the financial sector and to identify the measures envisaged to bring it up to international standards in terms of actors, instruments and practices. financial, notes Ms. N’Diaye. It was carried out by the Consultant, Simplot Kwenda, a lawyer specializing in the financial sector, following an international call for tenders.
In addition, the representative of the governor of the BCRG, the 1st vice-governor of the said financial institution, underlines that this study is an initiative of the Guinean government with the aim of supporting the private sector.
“This project was born from an established observation of the absence of an appropriate instrument for financing long-term investments in the economy. Its implementation would therefore make it possible to reduce the difficulties of mobilizing resources for the financing of both public and private investments.”, indicates in his speech, the 1st vice-governor of the BCRG, Mohamed Lamine Conté.
According to him, “the establishment of the stock market should strengthen financial intermediation”. Because it has many advantages. The stock market gives “the possibility for investors to invest their savings in all sectors of the economy and to change the composition of their assets in transferable securities, to extend the maturities of their debts, to obtain better borrowing conditions and to diversify their funding sources.”
Mr. Conté also recalled that “the stock market is a platform for the private sector–form of expression of entrepreneurial dynamism and a vehicle for the “disengagement of the State” from economic life through the public sale of its holdings in companies in the commercial sector”. It also stimulates the economic development of companies by promoting an efficient allocation of resources over time.
Finally, the representative of the governor of the BCRG at this meeting said that “the establishment of a Stock Exchange will be a sign of confidence in Guinea’s economic and financial future. [Elle permettra]to provide Guinea with a legal and institutional framework in line with international standards and adapted to the context of the Guinean economy in order to reassure both national and foreign investors”.
“It is within this framework that the BCRG recruited, with the support of the ADB, a Consultant to modernize the legislative and regulatory framework of the securities industry by allowing the establishment of new products, markets and market finance that correspond to the new challenges of the Guinean economy. The objective of the workshop that brings us together today is to validate the provisional documents produced by the Consultant and transmitted to the actors and partners of the financial sector.“, hammered Mr. Conté.
Before adding that “the establishment of the Conakry Stock Exchange had been slowed down due to the socio-economic situation that prevailed during the [dernières] years characterized by weak growth, expansionary fiscal policy [ayant accéléré] money creation and inflation”.