In an interview with Economiste Maghrébin, Bilel Sahnoun, managing director of Tunis stock exchange, indicated that the listing of some public firms would improve the stock’s exposure to international investors.

Even if most of those state companies are plagued by structural deficit, the director thinks that their listings could be a better way to improve their management. He also estimates that due to their sizes, they have the required capacities to transform Tunis stock Exchange into an emerging market for investors.

"Compared to indexes like the Footsie, we are considered as a  'Frontier market'. We must move to the next step of 'Emerging market'. To become an Emerging market, we need at least two firms with over $1.3 billion of capitalisation. We can’t find firms of this size in the private sector", Bilel Sahnoun explained.

According to a report published by the London Stock Exchange, Africa only captures 7.5% of the $5,000 billion invested on listed index funds or stock indexes. The report also informs that South Africa captures 75% of the funds invested in the continent.

Apart from the quality of listed companies, African stock exchanges should also improve the publication of information on financial products, elaborate affordable transaction costs and conditions.

Idriss Linge