Barriers and Opportunities for Enhancing Capital Flows
In the COMCEC Member Countries
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technology of exchange
 Improve stock market
infrastructure e.g.
establish a central
securities depository
 Enhance transparency
of exchange by
regularly issuing
market trading reports
 Reduce transaction fees
 Give private companies
more incentives to list
their shares on the
stock exchange
requirements and the
loss of control do not
appeal to investors
Improvement in business
environment through
policies to enhance
political effectiveness
 Establish a one-stop
shop investment centre
 Build online
functionality (e.g. form
submission capacity in
addition to information
provision)
 Facilitate the
registration of different
company types, as well
as branches
LICs and LMICs – very
important to
overcome inefficiency,
and bureaucracy –
potentially very
powerful for countries
with low score on
inefficiency,
bureaucratic burden
Medium – UMICs – some
countries
already doing
this and
effectiveness is
variable
HICs
Identification and
elimination of policy
barriers relating to
mobility and treatment of
foreign capital flows
 Open or eliminate
limits to foreign
ownership
 Institutionalise equal
treatment of foreign
capital to domestic
capital
 Facilitate the free flow
of private capital and
unrestricted
repatriation of profits
 Set transparent
processes for state
procurement and
public-private
investment
 Facilitate opportunities
for hedging of currency
risk
 Set up investment
promotion committees
to tackle barriers in the
country
 Partner with regional
or COMCEC Member
States exchanges
 Promote domestic
investment in the stock
market by favouring
institutional investors
LICs and LMICs –
regional integration
can bring scale and
liquidity, and
countries can learn
from best practices
High – removing
capital controls in
lower-income
countries can be
politically challenging
UMICs and HICs
– eliminating
capital controls
and allowing
hedging of
currency risk
tends to be more
feasible in
countries with
higher liquidity