CMA signs MoU with manufacturers to support growthJune 27, 2019
NAIROBI, Kenya, Jun 27 – The Capital Markets Authority (CMA) has signed a Memorandum of Understanding (MoU) with the Kenya Association of Manufacturers (KAM) to promote the growth and development of the manufacturing sector through the capital markets, in line with the Big 4 Agenda and the Sustainable Development Goals.
Through the MoU the Authority and KAM will collaborate to identify and analyze funding gaps, institutional challenges and key impediments in the manufacturing sector and collaborate on implementing solutions to the same.
The agreement is instrumental in catalyzing policy formulation and product development aimed at fueling the growth of manufacturing through responsive financing through the capital markets industry.
‘This partnership will enhance our ability to examine the strategies to create a pipeline of issuers of traditional and new capital market products to support manufacturing. This may include a review and possible revision of existing eligibility and disclosure requirements to attract large and family-owned companies & small and medium enterprises (SMEs)’, noted CMA Chief Executive, Paul Muthaura.
KAM Chief Executive, Phyllis Wakiaga said, ‘It is a worthwhile partnership whose success will have a reverberating effect throughout industry and respective value chains for years to come. This collaboration also comes at a time when manufacturing has been identified as a key pillar in the economic agenda of the country and will be a catalyst towards increasing the GDP Contribution of the sector from 7.7% to 15% by the year 2022.”
In line with the CMA Strategic Plan, products such as project bonds, private equity, Development REITS, Green Bonds and restricted public offerings can be leveraged to develop the manufacturing sector at national and county level.
This will accelerate economic growth, create jobs and disseminate wealth. Muthaura observed that the share of manufactured products in Kenya’s exports can be increased and transformed to support value addition and a shift towards sustainable, inclusive trade.
The partnership will also support research and analysis, capacity building and financial inclusion.