As highlighted in a post from April, Mads and I still believe that MYC4 eventually should provide the kind of capital that Africa needs – and no one company only needs loans as they climb the development ladder.
Yesterday, I read some rather interesting news that is fully supporting our vision, but to be honest, I did not see that this would materialize by now, so I am positive thrilled:
“Capital Markets Authority (CMA) is hoping to conclude work to allow SMEs to list on a new market, the Small and Medium Enterprises Exchange (SMEX), which will have less stringent listing requirements than the Nairobi Stock Exchange (NSE).”
This would be a great next step for Kenya and other African countries looking at Kenya as a pioneering country.
Also, it would be an ideal partner for MYC4 as companies are growing from being funded by MYC4 loans to raise more patient capital in form of equity on SMEX.
But it is not all glossy!! Please note the “less stringent listing requirements” part of the quote above. In Scandinavia a like-minded Exchange (First North) was established as an alternative stock exchange for smaller companies and results are not impressive. Of the listed companies (at least the Danish companies) 5 years later main parts are not existing any more or are heavily strugling…
I am NOT saying that the idea of introducing alternative stock exchanges with a different set of requirements is not a good idea, oh no! What I am saying is that it is not plain vanila and, amongst other, it could be a good idea for CMA to get key insights from First North and other alternative Exchanges.