‘How to structure SMEs for subsequent listing on nation’s bourse’
Participants that gathered at the two-day yearly conference of the African Securities Exchanges Association (ASEA) held in Lagos on Tuesday stressed the need for Exchanges to structure Small and Medium Enterprises (SMEs) and monitor their operations from strategic planning to cash flow to make them viable enough for listing on the stock exchange.
The experts, who said that exchanges must offer their expertise to SMEs in the areas of advice and suggestions, also added that appropriate regulatory framework is needed from government and financial institutions to create institutional support to the segment of the market.
According to them, if SMEs have structures in such a way that they will appear more attractive with minimised risk profile, it would fast-track economic prosperity and ultimately generates more job opportunities for the youths.
More so, they suggested that SMEs should be ranked in order of performance to spur healthy competition among operators.
Specifically, the Director, Project Finance, Afrexim Bank, Kofi Adomakoh said research and information is very critical ingredients of the whole gambit of solutions to tackle SMEs constraints.
According to him, exchanges must commission consultants to gather information and continuously advice in a quarterly basis on what is happening in the SMEs space and in specific aspect of the business.
“Research and information is very vital. It is a critical ingredient of the whole gambit of solutions if you want to address SMEs solutions properly as regards stock exchanges. For Afrexim bank perspective, we on a continuous basis have a solicited grants and also commission consultants to gather information and continuously advice us through quarterly reports on what is happening in that space and in specific aspect of SMEs businesses.