Financial Development in Sub-Saharan Africa: Promoting Inclusive and Sustainable Growth

Author/Editor:

Montfort Mlachila ; Ahmat Jidoud ; Monique Newiak ; Bozena Radzewicz-Bak ; Misa Takebe

Publication Date:

September 14, 2016

Electronic Access:

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Disclaimer: The views expressed herein are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

This paper discusses how sub-Saharan Africa’s financial sector developed in the past few decades, compared with other regions. Sub-Saharan African countries have made substantial progress in financial development over the past decade, but there is still considerable scope for further development, especially compared with other regions. Indeed, until a decade or so ago, the level of financial development in a large number of sub-Saharan African countries had actually regressed relative to the early 1980s. With the exception of the region’s middle-income countries, both financial market depth and institutional development are lower than in other developing regions. The region has led the world in innovative financial services based on mobile telephony, but there remains scope to increase financial inclusion further. The development of mobile telephone-based systems has helped to incorporate a large share of the population into the financial system, especially in East Africa. Pan-African banks have been a driver for homegrown financial development, but they also bring a number of challenges.

Series:

Departmental Paper No. 2016/011

Subject:

English

Publication Date:

September 14, 2016

ISBN/ISSN:

9781475532401/2616-5333

Stock No:

FDSAEA

Pages:

79

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