NAIROBI, March 6 (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 market-based finance.
"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 statement said.
When established, 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 corporate restructuring.
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.
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