Developing Securities Markets in Sub-Saharan Africa: Does it Matter?

49 Pages Posted: 10 Sep 2020

See all articles by Reginald Aziza

Reginald Aziza

Faculty of Law, University of Oxford

Date Written: July 30, 2020


A raging debate exists on the utility of stock market capitalism to African countries. Whilst some commentators take the view that stock markets are irrelevant to Africa and advise African states to prioritise the development of their banking systems, other commentators view well-functioning markets as important to economic growth. Using developments in law and finance literature, this paper advances two main claims. First, that there is substantial empirical and historical evidence in support of the theoretical proposition that liquid securities markets promote economic growth. In this regard, banks are not substitutes, but complements to securities markets in promoting long-run growth. Second, by conducting an empirical analysis of securities cross-listing of all firms listed on all 24 stock exchanges in Sub-Saharan Africa, this paper advances the claim that financing practice shows that cross-listing has not provided a suitable alternative source of finance to Sub-Saharan African firms, making the development of domestic markets and domestic regulation crucially important.

Keywords: capital market, capital market development, securities law, Sub-Saharan Africa, Africa, financial regulation, bonding hypothesis, cross-listing, stock market

JEL Classification: K22

Suggested Citation

Aziza, Reginald, Developing Securities Markets in Sub-Saharan Africa: Does it Matter? (July 30, 2020). Available at SSRN: or

Reginald Aziza (Contact Author)

Faculty of Law, University of Oxford ( email )

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