NAIROBI (Xinhua) --
The regional capital markets regulators, under
the umbrella of East African Securities Regulatory Authorities (EASRA),
have agreed to support the establishment of a Capital Markets
Advisory Centre (CMAC) to enhance Small and Medium Enterprises (SME)
access to capital.
EASRA said in a
joint statement issued in Nairobi on Monday CMAC is expected to
provide technical support to SMEs with a view to developing a
credible pipeline of entities able to access private and public
“To ensure the
sustainability of CMAC, EASRA members will engage with private
equity, accounting and other associations, development partners,
academia, think tanks, and civil society organizations,” the
the institution’s support is expected to focus on pre-listing,
listing and post-listing support services. Partners will be
called upon to provide advocacy and technical support.
The decision to set
up CMAC was made with the recognition that SMEs need to be
supported to access alternative forms of long term capital,
thereby reducing their dependence on short term bank financing
in order to spur their growth and boost employment.
However, most SMEs
in the region cannot afford technical services like legal and
EASRA also vowed to
maintain support to member states in the area of capacity
building until they are all at an equal level to support a
single EAC investment destination for global investors.