When people can participate in the financial systems, they are better able to begin and expand businesses, invest in their children’s education, and absorb financial shocks.
Sub-Saharan Africa includes a population with most lives being at the economic downstream, and probably underdeveloped. The financial inclusion gender gap and income gap persisting exactly like 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 second largest continent with a population of 1,256,268,025 (16% of the populace of the world) and by the conclusion of January 2018, 40.2% residing 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 of the mainstream economy. Policy targeting could be difficult in such scenarios, and identifying individuals who lack use of financial and economic inclusion includes a huge financial cost alone, although the benefit in this outweighs the fee in mere numbers and requires commitment from leaders and managers of the respective economies. Prescott Financial Advisors In conjunction with a universal phenomenon of non-perfect, untrusted, and in some instances non-existing data on the continent, that might make decision making imperfect and data unreliable, affecting plans, policies and the potencies to solve stated challenges or improving the economic and social fibre of countries.
The struggles of the financially excluded result 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 using its results in persistent poverty and inequality. Insufficient use of basic needs like 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 the years in financial and economic inclusion in this regard at individual country levels.
Earlier in 2010 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 because of their retirement.
The meeting lasted for a lot of the day, and whilst their finances were on the agenda and were managed, a lot of the meeting revolved around how they were going to live in retirement, what they might and must do, how they were going to maintain family ties, decisions about their residence and almost all aspects of life in retirement. We also covered their relationship with money, dealing specifically with how to change their working life attitude of saving and prudence to finding the courage to invest their time and money on making the most of the lives in retirement. Whilst I was able to demonstrate mathematically that their income and assets were 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 come to an end 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 being an important mechanism for the promotion of economic development in African countries cannot be overemphasized. Financial markets regulation remains a really sensitive and complex activity in regards to governmental policy development, with relation to defining strategic options pertaining to financial regulation. This information reviews the current status of financial farkets, the legal and regulatory frameworks in the Southern African region, with a unique concentrate 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 the same time many experts are calling for liberalization of financial services in Africa, it is important to analyze what’re the explanation, advantages and implications of financial markets regulation for Southern African countries under the light of new international instruments and standards, like the Basle II Framework and the WTO Agreement on Financial Services of 1994, whose operational modalities are remains 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 produce a concise outline of financial markets regulation framework within the South African countries; and provide around possible a definite understanding 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 being highly technical and can some times be confusing. While we attempt to help keep a non technical language during this paper, it is quite impossible to steer clear of the specific concepts found in the financial profession. For some key concepts, a concise glossary of a lot of the technical words is provided at request by the author.