Algiers Stock Exchange improves SMEs' access to financial markets
Algiers Stock Exchange has introduced new measures to improve Small and Medium Enterprises' access to the Algerian financial market.Algiers Stock Exchange has introduced new measures to improve small and medium Enterprises' (SMEs) access to the Algerian financial market.
The move is expected to help SMEs find new sources of funding, which will stimulate their development and the country's economic growth.
Following the recommendations of the committee for capital markets reform, the institution has decided to reorganise the domestic stock market by creating three compartments, including a main market for large companies, a market dedicated to SMEs and a third one for the trading of Treasury bonds.
According to the CEO of the Stock Exchange management company (SGBV), quoted by APS news agency, Algiers Stock Exchange' entry requirements are now "significantly" more flexible for SMEs. However, he did not give further details on these new requirements.
Algeria is following the example of neighbouring Morocco, often quoted as an example of SME integration within the financial market in Africa.
The Moroccan government and the BVC have introduced several mechanisms to improve SME financing, such as tax incentives with up to a 50 percent exemption on corporate tax on the three first years of listing.
BVC also provided a grant in order to reduce the costs of introduction on the stock market.