The Capital Markets Authority yesterday said there were plans to develop a framework to enable companies to raise capital through mobile money platforms in the near term. This follows the successful sale of initial Sh150 million infrastructure bond, the M-Akiba, by the government in two weeks from March 21. Kenya was the first country in the world to raise money through a mobile phone platform, underlining its global dominance in mobile money innovations.
“We have created a mobile-based platform. There must be a marker for setting up the mobile based platform links that are NSE specific, so that is where we are as of now,” CMA chief executive Paul Muthaura said yesterday in Nairobi during the two-day African Markets Conference which kicked off yesterday. He was responding to a question on whether there were plans to have corporates allowed to raise cash through mobile-based platforms.
The meeting had been organised by International Finance Corporation, the private sector lending and investment arm of the World Bank Group.
The workshop discussed how best to deepen domestic capital markets in Africa to reduce over-reliance on foreign debt through the adoption of technology.
“We need to unlock private financing both domestic and foreign to meet development needs which can be done easily by investing in the capital markets,” IFC chief economist Hans Peter said during the forum.
The framework, if developed, will allow the 65 companies trading on the Nairobi Securities Exchange and other companies to raise additional capital through mobile phones.
“The fact that we could raise capital at a minimum of $30 (Sh3,000 ) per unit, we could move the middle-class to the money class by creating an opportunity for the normal guy on the street to invest. I think we need to have this rolled out sooner,” Citibank East Africa chief executive Joyce-Ann Wainaina said.
NSE chief executive Geoffrey Odundo on Monday said he was looking forward to companies developing plans to raise capital through M-Akiba.
“Domestic saving is a big issue not only in Kenya but in African markets in general and due to reduction in foreign aid and assistance, Africa may have to prove more resilient and adopt self-reliance measures such as mobilizing resources through capital markets,” Peter said.
The M-Akiba bond issued on March 23 had a minimum investment of Sh3,000.