Capital & Financial Markets

Economic Insights: Investing in African Stock Markets (24/03/25)

This article discusses African stock markets, focusing on low IPO activity due to regulatory, market structure, and ecosystem issues. We emphasise the growth potential of African markets, driven by factors like a rising middle class, improved governance, and technological advancements such as mobile money. To boost IPO activity, solutions include attracting domestic retail investors, reducing IPO compliance costs, improving liquidity, and enhancing transparency and reporting standards. We suggest technological leapfrogging to overcome barriers and build stronger, more dynamic financial markets across Africa.