Financial market reform is vital for Africa to become an economic powerhouse
With SA a frontrunner, countries such as Ethiopia and Mozambique lag, especially in stock exchange development, which is essential to capital raising through listings
With Africa’s population expected to exceed China’s by 2025, the continent’s economic potential is indisputable. And the rest of the world has taken notice. Between 2010 and 2016 more than 320 embassies were opened in Africa, and global investment is beginning to pour in. A diligent approach can ensure that these external opportunities are converted but this is only half the challenge. If Africa truly wants to become an economic powerhouse, it should get serious about reforming its financial markets. A broad, all-inclusive financial market that makes it easy for investors will enable Africa to grow. Commendable progress is being made. The recent ratification of the African continental free trade agreement promises to create a single market with a combined GDP of $2.5-trillion and access to 1.2-billion people. But more needs to be done by individual countries in Africa to reform and liberalise their financial markets. This will be the key to fostering financial inclusion, economic de...
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