When people can participate in the financial systems, they are better able to begin and expand businesses, purchase their children’s education, and absorb financial shocks.
Sub-Saharan Africa includes a population with most lives coming to the economic downstream, and almost certainly underdeveloped. The financial inclusion gender gap and income gap persisting the same as in other continents, though higher in Sub-Saharan Africa. World Population estimates on the basis of the latest estimates released on June 21, 2017, by the United Nations, shows Africa continues as the next largest continent with a population of 1,256,268,025 (16% of the people of the world) and by the finish of January 2018, 40.2% surviving in urban areas.
The continent has the greatest fertility rate of 4.7% (Oceania 2.4%, Asia 2.2%, Latin American and Caribbean 2.1%, Northern America 1.9% and Europe 1.6%) compared to the other continents with a yearly population rate change (increase) of 2.55% – the greatest among all continents. Most of its people (59.8%) have lived downstream (rural areas and villages) sometimes out from the mainstream economy.Prescott Financial Advisors Policy targeting could possibly be difficult such scenarios, and identifying people who lack use of financial and economic inclusion includes a huge financial cost by itself, although the benefit in doing so outweighs the price in only numbers and requires commitment from leaders and managers of the respective economies. Coupled with a general phenomenon of non-perfect, untrusted, and sometimes non-existing data on the continent, that might make decision making imperfect and data unreliable, affecting plans, policies and the potencies to resolve stated challenges or improving the economic and social fibre of countries.
The struggles of the financially excluded originate from barriers and reasons as access, social and cultural factors, income, education and many possible lists of others. Financial exclusion arguably is one of the reasons some economic policies lack potency to effectively target well on the citizenry having its results in persistent poverty and inequality. Insufficient use of basic needs as an account either at the financial institution or mobile money could mean significant possibilities of opportunities untapped. Globally countries have realized the importance of achieving inclusive societies and supports efforts at maximizing financial inclusion. Sub- Saharan Africa has made some strides over time in financial and economic inclusion in this regard at individual country levels.
Earlier this year and shortly before I surrendered my Financial Services Authority permission to offer financial advice I met Bruce and Theresa, my long standing clients of some thirty years. The meeting was arranged to express farewell and to close our professional (but not social) relationship, and to finalise their plans due to their retirement.
The meeting lasted for all the day, and whilst their finances were on the agenda and were handled, much of the meeting revolved around how they certainly were going to live in retirement, what they might and have to do, how they certainly were going to maintain family ties, decisions about their house and the majority of facets of life in retirement. We also covered their relationship with money, dealing specifically with how to improve their working life attitude of saving and prudence to finding the courage to pay their time and money on making probably the most of their lives in retirement. Whilst I could demonstrate mathematically that their income and assets were a lot more than sufficient to allow them to live a fulfilled life in retirement, we had to cope with some deep emotional blocks to spending, specifically worries that they’d go out of money.
The financial markets sector is one important area of public concern in Africa. The necessity for adequate regulation and supervision of Financial Markets as an important mechanism for the promotion of economic development in African countries can’t be overemphasized. Financial markets regulation remains an extremely sensitive and complex activity as it pertains to governmental policy development, with relation to defining strategic options pertaining to financial regulation. This short article reviews the current status of financial farkets, the legal and regulatory frameworks in the Southern African region, with a special focus on selected countries.
The topic under investigation relates to the regulation of financial markets by governments within the Southern African countries both at national and international levels. It attempts to understand its rationale, objectives, approaches and the practical means of defining a regulatory framework for a contemporary African financial market and system. At a time many experts are calling for liberalization of financial services in Africa, it is essential to analyze what’re the rationale, advantages and implications of financial markets regulation for Southern African countries underneath the light of new international instruments and standards, such as the Basle II Framework and the WTO Agreement on Financial Services of 1994, whose operational modalities are continues to be under negotiations on various key aspects.
This paper attempts to examine the institutional and regulatory framework for the financial markets operations in order to understand the underlying principles of financial markets regulation development; to develop a concise outline of financial markets regulation framework within the South African countries; and provide as much as possible a definite comprehension of policy development, key issues and challenges concerning the regulation of financial markets in the Southern African region.
The terminology found in the financial markets jargon is regarded as highly technical and can some times be confusing. While we attempt to keep a low technical language through this paper, it’s quite impossible to steer clear of the specific concepts found in the financial profession. For some key concepts, a concise glossary of all the technical words is provided at request by the author.