This second edition of the OECD Africa Capital Markets Report provides an overview of capital market developments across Africa, with a focus on lifting the contribution of market-based finance to economic development and financial resilience, and the further development of capital markets across the region. It presents recent market trends and developments across key segments, identifies areas where further progress is needed, and provides policy considerations informed by international standards and practices. The report focuses primarily on middle-income African economies with a certain level of existing capital market activity, while also identifying issues relevant to all countries seeking to deepen and diversify market-based financing.
Chapter 1 examines recent developments in African capital markets and their role in supporting economic development and resilience. It assesses the impact of recent external shocks on capital markets and identifies priorities for strengthening the contribution of market-based finance to economic stability and development.
Chapters 2, 3 and 4 examine developments in African equity, corporate debt and sovereign debt markets. They consider the factors shaping market development and resilience, including regulatory and corporate governance frameworks, the development of long-term and local currency financing, sovereign borrowing and debt sustainability. The chapters also identify policy priorities to support deeper, more liquid and diversified capital markets across the continent.
Chapters 5 and 6 examine the role of state-owned enterprises, pension funds and insurance companies in capital market development. They consider how stronger governance, transparency and disclosure can support the participation of state-owned enterprises in capital markets, and how expanding institutional savings and investment can strengthen the supply of long-term domestic capital.
Chapter 7 analyses financial literacy policies and initiatives across African jurisdictions and their role in supporting greater retail participation in capital markets. Chapter 8 examines developments in crypto-asset and stablecoin markets across Africa, including growing retail participation and policy challenges related to consumer protection, illicit finance and cybersecurity. Chapter 9 examines how public policies and institutions can help mobilise private finance for climate mitigation and adaptation, including through domestic and regional capital markets and the use of co-investment and risk-sharing instruments.
This report is part of the OECD Capital Market Series, which supports policy discussions on how capital markets can better channel household savings into productive investment in the real economy. It was developed in the context of a joint initiative between the OECD and the Regional Centre of Excellence within the Financial Services Commission of Mauritius, and was produced with the financial support of the Financial Services Commission and the Bank of Mauritius.