Lack of capital hurting African markets – AfDB

Most of the African countries cannot effectively access capital in their domestic markets and, as result, lack capacity to boost their local currencies, according to the African Development Bank (AfDB).Officials observed that African capital markets are generally small and lack a full range of financial and investment products. To find solutions and boost local currency and bond market development in Africa, AfDB hosted a three-day workshop in Tunisia where economists from over 50 African states met to discuss the issue. “In contrast to other regions in the world, few African countries can effectively access capital in their domestic markets,” AfDB said in a statement. “This is because African capital markets are for the most part at an early stage of development and, therefore, are generally small, illiquid and lacking a full range of financial and investment products.” The bank argues that financial sector development, including matured local currency bond markets, is paramount to successful and sustainable economic growth in Africa. “The forum offered a great opportunity for stakeholders to identify and prioritise the challenges and impediments to bond market development on the continent,” AfDB Vice President for Finance, Charles Boamah, said. “We look forward to the outcomes from this event that not only allows us to agree with our development partners and stakeholders on the work that lies ahead, but also to come up with a concrete action plan to be shared with Finance Ministers and Central Bank Governors for support in implementation.”

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Lack of capital hurting African markets – AfDB