Final report: the promotion of capital market in Africa -Phase I

Abstract

The evolution of capital markets in Africa in recent years has been rather dramatic, as countries have sought not only to mobilize domestic resources but also to attract foreign direct investment. Accordingly, activity in a number of capital markets that had been dormant for years picked-up significantly and a number of new markets have emerged. In a number of established stock exchanges, activity has been boosted by increased listings of companies; mostly made possible by privatization of state owned enterprises. At present, there are about twenty stock exchanges in the continent. However, many African stock markets are characterized by a relatively limited number of scrip, which are held to a substantial extent in perpetuity by few insurance and pension funds. Therefore, against the above background, the broad objective of the ECA project is to enhance the capacity of African countries to design appropriate policy frameworks for capital markets development including adequate regulatory regimes; and to acquire the skills necessary for the development of efficient capital markets.