 This is a working paper with a UN wider under the savings book project and we've done this paper with my two other colleagues who are not here so I'll make the presentation and it's on capital markets in sub Saharan Africa. I know there is a lot of literature on this issue but one of the main objective of this paper is to add more knowledge into the already existing literature. So that is my outline, do some introduction, look at the evolution, the structure and even the products that exist within the capital markets in sub Saharan Africa. Then I'll tease out the performance of the capital markets using various indicators and then highlight key messages that are coming out and finally make some policy implications from this. Why we bother about capital markets? These are markets that are key in channeling surplus funds from companies and households savings into long term productive use by making long term investments and how do they do this through issuance and training of long term securities. And we have seen government utilizing capital markets to raise funds, currency in above roads and other projects and we have seen governments issuing bonds through these markets to raise such funds. Therefore capital markets facilitated capital growth by mobilizing savings and converting them into investments. And this stimulates economic growth. African Union 2012-2015 and I quote, for Africa to take full responsibility in financing her development. The development of Africa's capital markets is a key priority area. We have seen countries in south and east Asian countries experiencing high growth, high economic growth and one of the reasons is because of high level of domestic savings. So Africa needs to follow that route for it to achieve a high economic growth and therefore these paper aimed to enlarge the prevailing literature on developing capital markets in sub-Saharan Africa. In terms of the evolution of capital markets in sub-Saharan Africa, most of them were established after the financial crisis in 1990s because there was need for nations to come out of the financial depression and one of the platform was capital markets. And therefore most of them are young, if I calculate they are about 32 years on average and below. It's only South Africa, Nigerian Zimbambwe and Kenya which had stock exchanges which were established as far as 1980s. I think that was South Africa and even Zimbambwe. Kenya came in around 1954. In terms of security exchanges and stock exchanges, it's only South African, Nigerian Zambia which have more than one. Other countries have one and we have two regional stock exchanges in West and Central Africa. In terms of the institutional and legal framework. Almost every capital market in Africa has a legal and legal framework in place. Actually laws and regulations are in place. But the question is, are they effective in regulating these markets? We test these using the global competitive index score for 2018 and 2019 and also 2015 and 2016. The indicator on the regulation of securities exchanges. And we found that most countries out of seven is called below four. It's only South Africa, Namibia, Rwanda and Nigeria, Botswana and Kenya which had a score above five. And what does it mean when most countries call below? Just like below average. It means there is uncertainty as far as the regression of the capital markets are concerned. And therefore this is a concern that despite the many laws and legrations that are there, there is still uncertainty. That regulation is concerned. When you look at Singapore and Malaysia, they land highly using that indicator. Meaning their regulation level is much higher than in Sub-Saharan Africa. In terms of products, most capital markets in Africa have limited diversity of products. Most of them deals with plain vanilla, this is so skated, equity and bonds. Beyond that, it's only South Africa, that is Jobag, Nairobi and Seychelles which have more than the equities and bonds. That is the derivatives and other products. So there is limited in terms of diversity. Performance of capital markets. If you look at the equity market and you look at the IPO's, the initial public offers between 2010 and 2020 for selected countries depending on the data that is available. South Africa lands high with about 60, more than 60, about 65 IPO's. Most of these other countries have less than 10, in 10 years. Meaning even in some years there are no IPO's raised. And we also test these using the steel global competitiveness index. And we look at the macroeconomic environment. And we found that there is some relationship. When that country scores high in terms of this indicator, we tend to find an IPO raised. So we kind of related that with the macroeconomic environment being conducive and investments or firms looking at investments in that space. Number of listed companies, small listing of companies. If you look at South Africa and Nigeria, those are the only countries with about over 200 companies listed. The rest, below 100. Nairobi, we are about 50. That's the average that we make despite the many companies that exist in these economies. Also when you look at the foreign firms and cross listing. And we took a case like South Africa, Nigeria and Malaysia. We find that they are very few, not not few, but the majority are domestic firms that are listed compared to foreign companies. A similar case happens in South Korea and Malaysia. We find domestic firms dominating. But these are very vibrant capital markets compared to what we have in South Africa, I mean in Africa. But when you look at a country like, not Korea, the other tiger is Singapore. Singapore, most of the foreign firms dominate their capital markets. Why? Because they have a very extreme capital flows policy, very extreme open. So I think that has brought in more foreign firms than domestic firms. But when you look at South Korea and Malaysia, it matches what we have in Africa. But we ask ourselves why, why these low foreign firms listing. And even their proportion of participation by foreign investors. Again we look at the prevalence of foreign ownership of companies within the global competitive index. And if you look at this graph here, we see that most countries are ranging about five. Meaning that in Africa we have very more or less like liberal capital flows policy. But we are not attracting foreign investments. Why? Why are we not doing that despite opening up in terms of capital flows of policies? We have very good policies. So across over Africa, so this is another area, maybe it is beyond our policies that investors are looking at. Now to try and bring in domestic firms into this thing, we have seen some countries including South Africa and Nigeria and Ghana. Setting up over the counter markets and boards to attract indigenous firms. Largely those are informal and coming into the formal listing. But we still find an issue with this because not many firms have been able to be listed. For example since NSC came in that is Nairobi Securities Exchange, I think in 2015 we have only five listed firms on this platform. And we ask ourselves what is it? Is it an entrepreneurial culture that is making our MSMEs not attractive even for listing? Because governments have tried even to step down on the conditions for listing for these firms but they are still not coming in. And when you looked at the entrepreneurship culture within the global competitiveness index, we saw that most African countries really ranked low. The score was below 50. Meaning that and some even went up to 30 and they are about. Meaning that this is something we need to do within our MSMEs, within our people to inculcate that culture of entrepreneurship. So that these firms can grow and then they move to the next level and even for the listing. Despite what the governments are doing, I know our governments are really doing a lot to support the growth of MSMEs but they are still not there. In Kenya these firms die within their third birthday. So that is and if you compare that to South Korea, Singapore and Malaysia their score is a beta in terms of entrepreneurship culture. Equated participation, I don't need to talk about this. We also teased out the issue of rights issue and we know rights issues are important because it gives listed firms an opportunity to raise additional funds. Again, depending on the data that came in, we saw that macroeconomic environment is key. But we also found it very low. I mean in most of the countries that are their firms are not using this opportunity, this window to raise additional funds. Bonds, corporate bonds still constitute a tiny part of the bonds markets. In Kenya, treasury bonds is a garment bonds dominate the market at about 99%. It's only in South Africa and Nigeria where corporate bonds dominate. And because of our undeveloped capital markets, we had this in the morning. Governments now are looking for external debt, what is called sovereign debt, sovereign Euro bonds issues. And this has its cost in terms of the interest rates and even other indirect fees. And this constraint is constraining our governments, I mean our countries. And actually as the time I did these few countries have defaulted while others were experiencing difficulties in servicing these Euro bonds. The data may have changed, maybe she will have data more on that. So that is an issue and that is where African countries are heading because we don't have our developed capital market. Because my time is over, I think the key message is that there is uncertainty within our legal and regulatory framework. Macroeconomic environment is key, weak entrepreneurship culture, entrepreneurial culture which constrains MSC's growth. And then despite the capital flows policies being friendly, we find very few foreign participation and again external debt I've talked about. So what can we do to maybe improve on our capital markets, we need to ensure that we strict enforce our laws and regulations. And even enhance professionalism within the officers who are in charge of these laws and regulations. Again ensure continuous stable and conducive macro economic environment to even incentivize investments. We need also to develop and implement focused policies to support MSMEs so that they are able to come out of the constraints such as the weak entrepreneurial culture. We even need to reflect on prudent and comprehensive policies that support the development of capital markets and their timely review. And finally we need to design effective approaches to exploit the anticipated from trade agreements such as the African continent trade agreement.