Financial Regulation in Africa

I neglected to mention this book when I first learned about it, Financial Regulation in Africa, by Iwa Salami.
It is published by Ashgate and the ebook is available. It is the first book to compile and outline markets laws in Africa.

This is a huge step toward filling the gap in the legal literature about financial markets in Africa. For many focused on Africa- researchers, investors, business people, this will pave the road for a better understanding of emerging and frontier capital markets. the focus of the book is integration of those markets.

Integration is an immensely interesting area for markets in Africa since so many are small and illiquid. Economies of scale argue for a combination of efforts to achieve efficiency for investors and the markets themselves. Integration however requires political will. Capital markets can be a thing of pride- a declaration that the country is "Open for Business." Integration requires a sacrifice of individual identity to a group identity. There seem to be many obstacles to integration particularly in sub-Saharan African markets.

Professor Salami has done a great service to researchers in the field and I cannot wait for my book to arrive! ...even though it is a little late!!               

Infrastructure investment in Africa

Lots of interesting developments in infrastructure in Africa these days.
Hope for a more connected future!!

New Namimbian Securities Exchange

Namibia is establishing a new securities exchange. the Namibian Stock Exchange will be joined by NamFin-X. NamFin-X will provide a source of revenue through capital raising for small to medium enterprises in Namibia. It will be member of the World Federation of Exchanges as well.

Along with Angola and Namibia, a new commodities exchange is being developed in East Africa. The EAX will begin trading commodities in Rwanda first then expand with hubs in all of the East African countries.

Many exciting things in the capital Markets of Africa!
  

Luanda Bourse

Angola has passed the laws necessary to establish a stock exchange. A secondary market will be opened next year, 2014, making ways for an equity market in 2016. Angola is the second largest oil producer after Nigeria and has made arrangement with the London Stock Exchange to provide training to build the skills capacity for the new market. 

Legal Education reform in the US

The American Bar Association just posted the draft report and recommendations of the Task Force on the Future of Legal Education. It has some really interesting recommendations. I cannot say that they are extraordinary. The task force recommends several changes that are meant to level financial inequality and provide for more diversity and allowing for more innovation which interest me the most.

Fundamentally, the task force reminds us that legal education is a private and a public good. Having competent legal service providers is a public good that the state must ensure. Legal education promotes the creation of problem solvers and critical thinkers who can serve as leaders, also a public good. Legal education also provides individuals the ability to study and then go practice law. Law schools historically did not need to consider the marketplace for their graduates but society is asking them to do so now.

Tie scholarships to financial need not LSAT scores 

The task force asks law schools to reconsider allowing scholarships for those who apply with high LSAT (law school admissions test) scores. Instead, financial support should be tied to financial need. This will allow students who have the greatest needs, historically minority students, the best opportunity to succeed without crushing debt after law school graduation.

State Bar innovation

State bars which regulate admission to the bar are encouraged to consider proposals to reduce the amount of law study required to take the bar exam. This includes the ability to complete undergraduate study that allows for sitting the bar exam as well.

Innovation in California

The State Bar of California is already considering a Limited License to practice law structure. In addition, the Supreme Court of California is hearing a case regarding allowing an illegal immigrant to take the California State Bar exam, allowing them to practice law in California.

Interesting domestic changes that are the result of economic shifts int he delivery of legal services as well as the growing number of individuals who need legal services and cannot afford it.

South African Constitutional Court ruling regarding the 2008 SADC Tribunal judgement in favor of Zimbabwe farmers.

In 2008 a group of Zimbabwe Farmers succeeded in winning a judgement for recovery of damages for the loss of their farms against the Zimbabwe Government. The judgement was rendered by the Southern African Development Community (SADC) Tribunal. That judgement had to be enforced by a court. The court that the Farmers requested to enforce the judgement was the North Gauteng High Court, Pretoria (High Court). The High Court ordered the payment of the judgement through attachment of Zimbabwe property in South Africa.

Zimbabwe appealed this decision. This month the Constitutional Court of South Africa, in a majority opinion written by Chief Justice Mogoeng, agreed with the lower court's decision to attach Zimbabwe property located in South Africa. The Court stated that it had extended the common law on enforcement of foreign judgments to include SADC Tribunal rulings. Additionally, the Chief Justice stated that the SADC Tribunal was established for this purpose, to allow citizens of SADC member states to seek redress for acts by those states.    

Further notes:
The SADC Tribunal was suspended in 2010 and reorganized in terms of purpose in 2012. Additionally, several properties owned by Zimbabwe in SA have been given diplomatic immunity and so cannot be attached in order to satisfy the judgement. One property was not able to be given such immunity and was attached in execution of the debt for the judgement.
    

New Financial Instruments East Africa

East Africa is developing new financial instruments to trade on their exchanges. According to Bloomberg,  the Nairobi Stock Exchange is acquiring regulatory approval for REITS and other futures instruments as well as Exchange Traded funds (ETF).

This is a brave new world for East Africa and new regulatory advances will follow. Institutional investors will be very interested to see firm investor protections in place to support investment in these new areas. In addition, dispute resolution processes available for potential conflict would be hugely beneficial for exchanges to continue to develop.   

Obama's trip to Africa has raised the stakes for new financial innovation on the continent!