Working Paper
Capital markets in sub-Saharan Africa

Capital markets facilitate capital growth by mobilizing savings and converting them into investments, and they are therefore a stimulant of economic growth. There is evidence that countries with high savings rates tend to grow faster.

Although most sub-Saharan Africa countries recognize the importance of local capital markets and have made efforts to develop them, they have not fully reaped the expected benefits. Hence the need for interventions to accelerate capital market development.

These include sustaining efforts to ensure stability of the capital markets to build investor confidence through strict enforcement of the laws, regulations, and rules governing them; having a constant stable and conducive macroeconomic environment to incentivize investments; developing and implementing focused policies to support the growth of micro, small and medium-sized enterprises to enhance their listing attractiveness; having prudent and comprehensive policies that support the development of capital markets and their timely review; and designing effective approaches to exploit the anticipated benefits from trade agreements, which is key to growing the vibrant private sector necessary to support the development of capital markets.