ECA has been concerned about African capital markets for many years. This has been part of ECA's broader work on financial sector reforms of African economies, aiming at making them private sector driven with a view to achieving sustained economic growth on the continent. Several years ago, ECA undertook a needs assessment of African capital markets. This was conducted jointly with the United Nations Conference on Trade and Development (UNCTAD) and a private sector firm, the African Capital Markets Forum. Missions were sent to a number of African countries to assess their capital market operations and needs. The missions met with CEOs of stock exchanges, regulatory bodies, stock broking firms, listed companies, institutional investors and other financial intermediaries as well as private investors. The report of that assessment identified a number of gaps in the operation of African capital markets. Among other things, it stated: 'The necessary conditions for further capital markets development are somewhat absent in many African countries. In addition, there is a shortage of skilled financial technocrats and the lack of training institutions appropriately equipped to meet the human resource needs of securities markets. The best way to deal with this limiting initial condition for capital market development in Africa is to increase educational activities; create public awareness campaigns; support the development of institutional investors; encourage unit trusts and pension funds; and train key market-players, such as brokers. In addition, it is also necessary to upgrade the knowledge and understanding of regulators and fund managers on the efficient management of markets.' It is in response to this assessment that ECA formally launched its African Capital Markets Development Programme. In 2002, the programme was boosted with the provision of special development funding from UN Headquarters in New York.
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