VII G. Strengthen Education: PROMOTING STOCK MARKET DEVELOPMENT IN AFRICA
|
| Tweet |
|
Free PDF Download References: Stock Market Development in Sub-Saharan Africa - By International Monetary Fund |
Increasing public knowledge about the functioning of the stock market could promote the
development of the stock market in Africa. Knowledge about stock market activity can be
improved through regular and intensive education programs. Educating the public about the
role of the stock market can help increase the investor based and improve the liquidity of the
stock market. There is often very little or no education on the role of stock markets in African
economies. Being new financial systems in most of Sub-Saharan Africa, stock markets would
not appeal automatically to economic agents. Education about stock markets must be at the
firm and individual level. At the firm level, it is important to allay the fears of firms by
educating them strongly and regularly on the benefits of listing. Firms in Africa have an array
of reasons why they would not list on stock markets. Apart from the lack of knowledge about
how stock markets work, there are other reasons such as high listing requirements and fear of
losing control over family businesses. A study on the Ghana Stock Exchange (Yartey, 2005)
revealed that 33 percent of firms surveyed were unwilling to list on the stock exchange
because of fear of losing control. At the individual level, African markets could tap into
potentially large amounts of financial wealth which exists outside of the financial system, by
pursuing vigorous and consistent educational campaigns about stock markets at various levels of society. Such educational drives are already in existence in a number of stock
markets in Africa. In South Africa, the JSE/Liberty Life Investment Challenge which
introduces the youth to dynamic games in economics and finance and its application to
investing and trading on the JSE has been running for three decades now.
IMF Working Paper
African Department
Stock Market Development in Sub-Saharan Africa: Critical Issues and Challenges
Prepared by Charles Amo Yartey and Charles Komla Adjasi
August 2007
Related Articles
Home
> African-Accounts
> International Monetary Fund
> VII G Strengthen Education PROMOTING STOCK MARKET DEVELOPMENT IN AFRICA
> Google +
|
Free PDF Download References: Stock Market Development in Sub-Saharan Africa - By International Monetary Fund |
|
About the Author: International Monetary Fund RSS for International's articles - Visit International's website The IMF is an international organization of 185 member countries. It was established to promote international monetary cooperation, exchange stability, and orderly exchange arrangements; to foster economic growth and high levels of employment; and to provide temporary financial assistance to countries to help ease balance of payments adjustment. Since the IMF was established its purposes have remained unchanged but its operations—which involve surveillance, financial assistance, and technical assistance—have developed to meet the changing needs of its member countries in an evolving world economy. Click here to visit International's website. What Drives Chinas Growing Role in Africa Policy Implications CONCLUSION What Drives Chinas Growing Role in Africa IIa Merchandise Trade TRADE AND CAPITAL FLOWS BETWEEN CHINA AND AFRICA IV C Private Contractors and Builders THE ROLE OF THE PRIVATE SECTOR |
Related Forum Posts
Share this article. Fund someone's dream.
Share this post and you'll help support entrepreneurs in Africa through our partnership with Kiva.
Over $50,000 raised and counting - Please keep sharing! Learn more.
Featured Article
Trending Articles
|
|
Like this page? PLEASE +1 it! |
Newsletter
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!
Popular Articles
** The Passion of the Resume**
Are You a Forced Entrepreneur?
Five Ways to Show Honest Appreciation
** The Passion of the Resume**
Are You a Forced Entrepreneur?
Five Ways to Show Honest Appreciation
Suggestions
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.
Email us your ideas on how to make our
website more valuable! Thank you Sharon
from Toronto Salsa Lessons / Classes for
your suggestions to make the newsletter
look like the website and profile younger
entrepreneurs like Jennifer Lopez.







