Africa's Emerging Securities Markets: Developments in Financial Infrastructure

by Robert A. Clark

Overview

The increasing globalization of financial markets has resulted in a substantial increase in net private capital flows to developing countries, primarily the emerging economies of Asia, Eastern Europe, and Latin America. Until recently, investors have ignored opportunities in Africa. African markets caught investors' attention in 1994 with Kenya's 179% U.S. dollar returbans leading world equity markets, along with six of the world's top ten markets being in Africa. With low levels of correlation between African and developed world markets, the African exchanges represent ideal portfolio diversification opportunities. Moreover, rates of returban for African investments are among the highest returbans in the world, yet African nations have not attracted the foreign direct investment that is required to change their economies.

Dr. Clark's research examines the nature and evolution of Africa's emerging securities markets and their role in regional economic development. He shows that the continent's trading systems represent many different trading arrangements without standardized rules and procedures. African countries continue to implement reforms to strengthen the development of financial markets, but without the appropriate market microstructure and custodial arrangements international investors will not provide African projects with the equity capital required for further development. The government's role in the regulation of developing equity markets, therefore, is a critical element to the success of the reform process. Clark argues that freeing the economies to international competition will reap significant dividends for the continent's emerging economies. As the markets evolve, structural impediments will reduce, leading to increased efficiencies and lower capital costs.

Product Details

ISBN-13:	9781567201499
Publisher:	Bloomsbury Academic
Publication date:	10/30/1998
Edition description:	New Edition
Pages:	248
Product dimensions:	6.00(w) x 9.00(h) x 0.69(d)

About the Author

ROBERT A. CLARK is Director, Graduate Studies in Business, and Associate Professor of Finance in the College of Business, University of Tampa. Previously on the faculty of the University of Vermont School of Business Administration, Dr. Clark founded and was the first director of the university's International Business Institute. He has also given lectures at the Business and Economics University, Vienna, and was a Fulbright Scholar at the Norwegian School of Management.

Table of Contents

Introduction
Investment Flows and Regional Development
Securities Market Profiles
African Investments
Selected Bibliography
Index

Editorial Reviews

Examines the evolving securities markets in African countries, which have failed to attract much foreign investment despite offering among the highest returns in the world and an opportunity to diversity portfolios. Describes the markets' institutional designs and structures, the varied trading systems on the continent, the rules and procedures, and the role of the securities markets in regional economic development. Profiles 14 countries in addition to the general discussion. Annotation c. by Book News, Inc., Portland, Or.

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