## Sub-Saharan Africa: Financial Sector Challenges

_Books, August 28, 2006_

## Source details

**Canonical URL:** [Sub-Saharan Africa: Financial Sector Challenges](https://www.imf.org/en/publications/books/issues/2016/12/31/sub-saharan-africa-financial-sector-challenges-19293)

## Other formats

- [Markdown version](/en/publications/books/issues/2016/12/31/sub-saharan-africa-financial-sector-challenges-19293/index.md)
- [Structured JSON version](/en/publications/books/issues/2016/12/31/sub-saharan-africa-financial-sector-challenges-19293/index.json)
- [Bundle manifest](/en/publications/books/issues/2016/12/31/sub-saharan-africa-financial-sector-challenges-19293/bundle-manifest.json)

## Bibliographic details
- Authors: Catherine A Pattillo, Anne Marie Gulde, Kevin J Carey, Smita Wagh, Jakob E Christensen
- Published: August 28, 2006
- Series: Books
- DOI: https://doi.org/10.5089/9781589065659.071

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### Overview
- Financial sectors in low-income sub-Saharan Africa (SSA) are among the world's least developed.
- Assets in most low-income African countries are smaller than those held by a single medium-sized bank in an industrial country.
- The absence of deep, efficient financial markets:
  - seriously challenges policy making,
  - hinders poverty alleviation,
  - constrains growth.
- The book argues that building efficient and sound financial sectors in SSA countries will improve Africa's economic prospects.

### Key themes and analysis
- Review of the key features of financial systems in SSA.
- Identification of main obstacles and challenges that current financial structures pose for SSA economies.
- Discussion of how financial market underdevelopment affects:
  - banking and commercial banks,
  - credit and credit constraints,
  - financial institutions and financial services,
  - financial markets, including stock markets and money markets,
  - portfolio diversification and lending.
- Use of survey evidence and credit information indices to inform the assessment.

### Findings
- Financial market depth and efficiency are severely limited across low-income SSA countries.
- Relative size of financial assets in most low-income SSA countries is extremely small compared with banks in industrial countries.
- Financial sector weaknesses have direct consequences for economic policy effectiveness, poverty alleviation, and growth prospects.

### Policy recommendations and reform agenda
- Implement steps to build efficient and sound financial sectors in SSA to improve economic prospects.
- Address major shortcomings identified in financial structures and in the implementation of reforms.
- Strengthen financial market infrastructure to alleviate credit constraints and support lending and portfolio diversification.

### Publication and metadata
- Authors: Catherine A Pattillo, Anne Marie Gulde, Kevin J Carey, Smita Wagh, Jakob E Christensen
- Publication date: August 28, 2006
- Pages: 57
- ISBN: 9781589065659
- DOI: https://doi.org/10.5089/9781589065659.071
- Stock No: SSAFEA

*Source: https://www.imf.org/en/publications/books/issues/2016/12/31/sub-saharan-africa-financial-sector-challenges-19293*

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_Source: https://www.imf.org/en/publications/books/issues/2016/12/31/sub-saharan-africa-financial-sector-challenges-19293_