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Article

Open Access

Issues in Financial Markets’ Development in Sub-Saharan Africa: Lessons From Developed Economies

Author(s)

Elias Igwebuike Agbo, Sergius Nwannebuike Udeh

Full-Text PDF Download XML 759 Views

DOI:10.17265/2328-2185/2021.02.004

Affiliation(s)

Godfrey Okoye University, Ugwuomu-Nike, Enugu, Nigeria

ABSTRACT

For some time now, development of financial markets in developing countries of the world has been saddled with a lot of controversies. Furthermore, observations from many studies showed contradictory views which have made debates on the subject matter inconclusive. In view of this, the general objective of this study is to examine financial and stock market developmental issues in developing African countries. It specifically intends to highlight strategies to strengthen financial and stock markets in African countries, among others. The study adopted table content analysis and descriptive statistics in its methodology. The study discovered that in spite of all the gains derivable from financial market development, the intensity of financial sector reforms implemented in some developing countries has not brought about a reasonable increase in the size and depth of their financial systems, among others. The implication of this is that capital market development in these developing countries would continue to suffer setbacks with their attendant consequences on economic growth. The study concluded that the presence of strong and virile financial and stock markets cannot be overlooked in any economy. It therefore recommended, amidst others, the promotion of institutional investors as well as development of appropriate business and investor friendly policies.

KEYWORDS

finance, stock market, developmental issues, African countries

Cite this paper

Agbo, E. I., & Udeh, S. N. (2021). Issues in Financial Markets’ Development in Sub-Saharan Africa: Lessons From Developed Economies. Management Studies, Mar.-Apr., Vol. 9, No. 2, 124-136.

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