Securities Markets in Africa

Paper Summary:

The paper discusses the African securities markets which are, for the most part, 'primary' markets with only minimal secondary activity. The paper notes that while reforms in Africa have been ongoing for the last decade, there is still much to be done to provide the funding needed there and added to this is the difficulty in checking creditworthiness in rural areas. The paper also recommends that additional research should focus on understanding that supports and drivers might serve in maturing, growing and developing the securities market in Africa as well as on what might be done to simultaneously address the risks that are conceived as part of securities financing in the African securities exchange market.


Outline:
Abstract
Introduction
Statement of Problem
Methodology
Literature Review
Statistical Analysis
Data Collection Methods
Sampling
Results
Recommendation

From the Paper:

"The lack of long-term finance in Africa is said to be, in part "...a reflection of the long-term risks...and partly an endogenous response to the need for monitoring and recontracting." (The World Bank, 2007) It is however, stated that a requirement is "good governance of these funds...needs to be assured, and that it will be facilitated if there are active securities exchanges on which their investment can be priced." (The World Bank, 2007) The International Bank for Reconstruction and Development/The World Bank states that most African securities markets are: "...largely primary markets with relatively little secondary activity. Perhaps an over-elaborate model of regulation has been adopted for these markets (the modernist model over-reaching itself), effectively precluding small issuers, yet failing to achieve substantial liquidity for larger issuers." The work of Niekerk and Moreira entitled: "Regional Integration in Southern Africa" states the following features of financial systems in the Southern African Region".

Sample of Sources Used:

• Niekerk, LK and Moreira, EP (2002) Regional Integration in Southern African - Overview of Recent Developments. Dec 2002. Online available at: http://www.sarpn.org.za/documents/d0000329/Regional_Integration.pdf
• Slager, AMH (2004) Banking across borders. Online available at:http://publishing.eur.nl/ir/repub/asset/1301/EPS2004041ORG_9058920666_SLAGER.pdf
• Making Finance Work for Africa (2007) The International Bank for Reconstruction and Development/ The World Bank. Nov 2006. Online available at:http://siteresources.worldbank.org/INTAFRSUMAFTPS/Resources/MFWfAFinalNov2.pdf

More papers on Securities Markets in Africa:

• Essay # 73611 : "Security and Political Conditions in Africa"
• Research Paper # 88797 : "AIDS in Africa: Mother to child transmission"
• Essay # 70927 : "Migration in Africa"

APA Citation:

MLA Citation: