4.4.7. Alternate Exchanges and SME Windows
DESCRIPTION
“Since 2002, 20 African stock exchanges have created specialist SME boards to help SMEs gain access to equity. The SME board is a segment of the stock exchange, dedicated for trading the shares/ securities of SMEs, who otherwise find it difficult to get listed on the main board of the exchange. The concept originated from the difficulties faced by SMEs in gaining visibility and attracting sufficient trading volumes when listed along with bigger stocks on the main board. It is also understood that the listing requirements for the SME boards are less [onerous] than the main boards. This is in order to make it more accessible for SMEs to list” (Source: African Securities Exchanges Association). This intervention addresses access to finance, financial literacy, knowledge of lenders, knowledge of different loan types and products, finance readiness (Source: African Securities Exchanges Association)
CONSTRAINTS ADDRESSED
- Access to reliable credit information on borrowers
- Transaction costs associated with originating and managing loans to target sector/region
ADVANTAGES
Coming soon.
DISADVANTAGES
Coming soon.
MUST HAVE’S, CRITICAL POINTS, OR QUESTIONS TO CONSIDER
Coming soon.