Africa’s $1tn Opportunity Hampered by Fragmented Markets – BoG

The Second Deputy Governor of the Bank of Ghana, Matilda Asante-Asiedu, has called for urgent reforms to better structure Africa’s financial markets, warning that weak coordination is limiting the continent’s ability to mobilise its own capital for development.

She noted that Africa holds more than $1 trillion in financial resources across pensions, capital markets, and remittances, but these funds are not being effectively channelled into long-term investments.

According to her, amid rising global uncertainties, the continent must increasingly look inward and deliberately pool its financial resources to strengthen economic resilience.

Ms. Asante-Asiedu explained that although Africa has more than 30 stock and bond markets, limited integration prevents countries from accessing capital beyond their borders. She emphasised the need for stronger coordination, political will, and leadership from economic stakeholders.

She pointed out that the fragmented nature of markets means countries cannot easily raise funds from neighbouring economies. For instance, she noted that a country like Ghana cannot readily borrow from capital markets in Kenya under the current structure.

According to her, better integration would allow cross-border investments, enabling investors to earn returns while supporting economic growth across the continent.

She stressed that pooling resources and improving market coordination are essential to building resilience, adding that achieving this goal will require strong political commitment and leadership from economic actors across Africa.