NGX’s “The Stock Africa Is Made Of”, AfCFTA, and African Renaissance

By Anthony Ajero

At the global launch of the Nigeria Exchange (NGX) Group Plc a few days ago, my mind kept returning to the concept of Zeitgeist – the defining mood of a period, milieu, era, or epoch as reflected in the ideas and beliefs of that particular time in history – as I wondered how the NGX principals arrived at the theme campaign – “The Stock Africa is made of”?

I wondered not too long, for in that campaign was encapsulated a theme resonant with the current strident spirit pervading Africa and indeed the Black race. Reference “Black lives matter”, and reference “I can’t breathe” on one hand. On the other, reference the number of Blacks (some of Nigerian origins) President Biden has appointed to the world’s most powerful nation’s cabinet – from Adewale Adeyemo as Deputy Treasury Secretary to Linda Thomas-Greenfield as United Nations Ambassador.

Reference, some will add, the inspiring stories coming out of Africa such as from Kigali, Rwanda. Interestingly, one of the key speakers at NGX’s global launch, Toronto Raptors President of Basketball Operations Masai Ujiri challenged fellow business leaders at the launch (Aliko Dangote, Jim Ovia, Tony Elumelu et al) to turn the Lagos national stadium into a money spinner like the 2019-built-and-finished 10, 000-seater Kigali indoor arena which hours later hosted the first-ever African basketball competition. The same Kigali, Rwanda where 44 Heads of State, on 21 March 2018, signed the establishment of the African Continental Free Trade Area – AfCFTA. Hence its other name – the Kigali Declaration.

The AfCFTA, which turns Africa into a free trade area, was created by the African Continental Free Trade Agreement. The first nations to ratify the agreement were South Africa. Kenya and Ghana. Its Secretariat, situated in Accra, Ghana, was commissioned and handed over to the African Union on August 17, 2020, by Ghana’s President Nana Akufo-Addo.

A PwC article titled “AfCFTA – Thriving in a New Africa” spotlights this agreement which has all the prospects of a game changer for Africa. Broad objectives? Create a single continental market for goods and services; enable free movement of business persons and investments; pave the way for accelerating the establishment of the Continental Customs Union. Bottomlines? Enhance competitiveness at the industry and enterprise level through exploitation of opportunities for scale production, continental market access and better reallocation of resources.

The business case remains simple. In intra-continental trade volumes, Africa does 15 per cent, Latin America 20 per cent, North America 48 per cent, Asia 58 per cent, Europe 67 per cent. No rocket science is required in seeing the correlation with continental development.

Even more pointedly, since the World Trade Organisation came into effect, Africa’s free trade zone is the largest in the world in terms of countries with 54 of African Union’s 55 countries participating.

Lay atop these, Africa’s

Different reasons have been adduced as to why Nigeria joined the wagon quite late – July 7, 2019. However, its vital role in the success or otherwise of the AfCFTA can be seen in the shifting of the commencement date from July 2020 date to January 2021. Some argue it was to enable Nigeria’s onboarding as the largest market in the continent. Others say it was due to COVID-19. Of a truth: Nigeria had always championed the Agreement. Well, until it came to signing the framework.

Here we were. Tuesday, May 18, 2021: The NGX Group rose from the ashes of the 62-year old Nigeria Stock Exchange (NSE). Reflecting its new brand identity, it immediately spot-lighted the growth potential of the African continent. This continental focus echoes all around its being. In explaining its motivating philosophy, NGX affirmed that one of the things that need to change in Africa is the narrative the world has about what they think makes up Africa. From business, through entertainment to medicine, Africa has many amazing people playing on the world stage and winning.” How true!

The Group Chief Executive Officer, NGX Group Plc., Mr. Oscar N. Onyema, (OON), stated, “as we step into the NGX era, we remain committed to the highest level of competitiveness, both in the African and global capital markets. This campaign has, therefore, been designed to reinforce the message that we are fully equipped and better positioned to champion the development of new and improved experiences for the benefit of domestic, regional and foreign stakeholders. We are excited to show the world that we embody the same traits of ambition, strength, innovation and excellence that distinguish the African continent, and we are confident that these qualities will see us thrive in an era of endless possibilities.”

In more ways than one, NGX’s positioning couldn’t have been more apt for Africa’s Renaissance looms large.

…Anthony Ajero is a staff of C and F Porter Novelli.