Stock Markets and Development in Africa

Globalization is posing enormous challenges to development efforts in many African countries. One of the most daunting challenges is to raise capital to meet financial needs. Despite regional tendencies, the effectiveness of stock markets to raise capital within the African region has been limited. This book asks whether African stock exchange might become more effective in enhancing development. It adopts a legal approach in analyzing various laws and texts. Stock Markets and Development begins with discussions of global experiences in both developed and developing countries. It then examines the legal frameworks of regional organizations, in which stock markets are catalysts of integration and development. Arguably, stock markets can serve as gateways to development within this zone through harmonization of laws and common public issue of shares. The effective operation of stock markets within Africa, however, is bedeviled by many legal and extra-legal challenges. In line with the globalization tendencies and mindful of lessons from advanced countries, the book recommends that institutional organizations should be used as facilitators to the integration of stock exchange markets. The ideal would be to create an environment conducive to the creation of a Pan-African stock exchange that is globally competitive and capable of enhancing development.