Bearish times for African bourses, as Equity markets declined in 2019
African Equity Capital Markets declined sharply in 2019 both in volume and value to post the lowest proceeds raised in ten years.
A report by Price Waterhouse Coopers, showed a general slowdown in equity markets being largely driven by a series of macroeconomic factors that included a deceleration in global equity capital markets, caution in the period leading up to key local elections, that took place in both Nigeria and South Africa in 2019, as well as growing political gridlock and economic stagnation in South Africa.
Andrew Del Boccio, PWC Africa Capital Markets leader said a state of uncertainty seems to have become the ‘new normal’, and that some degree of volatility and caution is expected to continue to affect Africa’s capital markets activity this year.
2019 Equity Capital Market value was the lowest seen over the past decade, while the volume of deals was only lower in 2012. Between 2010 and 2019, there were 927 African Equity Capital Markets transactions, raising a total of Ksh8.8 trillion.
The highest volume of transactions was recorded in 2015 and 2017, with 125 deals each, while 2012 recorded the lowest volume of transactions with 65 deals.
2019 saw the lowest volume in initial public offer activity over the past ten years, recording a decline of 47%compared to 2018 activity.
over the past ten years, there has been 215 IPOs by African companies on both African and international exchanges, raising nearly Ksh1.7 trillion.