The Experience of Financial Markets Legislation in the Southern African Region

Up to the end of 1994, there were 14 stock markets in the entire African continent. They were Cairo (Egypt), Casablanca (Morocco), Tunis (Tunisia) in North Africa; Abidjan (Cte d'Ivoire), Accra (Ghana), and Lagos (Nigeria) in West Africa and Nairobi (Kenya) in Eastern Africa. In the Southern African region, these were Port Louis (Mauritius), Gaborone (Botswana), Johannesburg (South Africa), Windhoeck (Namibia), Lusaka (Zambia), Harare (Zimbabwe) and Mbabane} (Swaziland). In 2005, nearly all of other countries in Southern Africa have developed john thomas financial their own stocks exchange markets. They're Luanda, Dar-Es-Salam (Tanzania) and Maputo (Mozambique)} (Angola). With the exception of the Johannesburg Stock Exchange, and at a different level, the Zimbabwe Stock Exchange and the Namibia Stock Exchange, these markets are too small in comparison to developed markets in Europe and The United States, and also to other emerging markets in Asia and Latin America. At the end of 1994 there were about 1150 listed companies in the Africa areas assembled. The market capitalization of the listed businesses amounted to $240 billion for South Africa and about $25 billion for other African countries. In the countries under review, stock markets are particularly small compared with their companies - with the ratio of market capitalization to GDP averaging 17.3 %. The limited method of getting securities in the areas and the prevailing buy and hold attitudes on most people have contributed to rate}. Return is poor with less than 10 percent of market capitalization dealt annually of all stock markets. The low capitalization, low trading volume and turnover would suggest the nature on most stock markets in your community. We have gathered extensive info on the current state of financial markets in Africa in general, and due to a limited time period, it had been not possible to coordinate them. The structure with this report cannot allow to take into consideration all of the data. From the most recent information, it becomes clear that with the ongoing reforms within the economic john thomas financial groups in the countries under investigation, a whole lot of progress has been accomplished in terms of regulatory and institutional capacity building. More results could be expected by us with the promotion of more open investment laws, letting more financial flows in your community. The economic methods of Southern African countries are seen as an high property structure leading to techniques} which {create to credit for large companies but limited access to smaller and {emerging. The regulatory framework should consider all of the particular john thomas financial faculties of those systems, and at the same time keep carefully the general approach natural to every device. Financial systems in Southern Africa may also be noted for their marked variations. Some systems, such as these in Mozambique, Angola and Tanzania were for a lengthy period, dominantly government-owned, consisting largely of the not many. Up to date, Angola hasn't developed a money} and money market, and the informal money markets are utilized extensively.