IN TERMS of architecture, enabling legislation, products and depth, Sub-saharan African (SSA) capital markets are, at best, ‘a work in progress’.
In a post-Covid-19 recovery era, governments across Africa, hard hit by the impact of the pandemic, are in no position to finance much-needed infrastructure, let alone other socio-economic demands from national budgets.
Hence, a reliance on scarce inward FDI flows and efforts in mobilising domestic savings, especially pension funds, towards investment in productive assets.
Jeff Gable, Chief Economist and Head of Fixed Income Research at Absa Group, firmly believes that “open, transparent financial markets across Africa are the best way to ensure that the continent can attract foreign or domestic capital. This could translate into governments providing better opportunities for all Africans.”
Capital market development, he adds, can play…