توسعه مالی و سرمایه گذاری خصوصی در صحرای افریقا

This study examines the relationship between financial sector development and private investment in Sub-Saharan Africa. It uses panel data covering the period 1991–2004 from 18 countries in Africa. The main findings of the study are as follows: there is a negative relationship between interest rate and private investment, signaling large interest rate spreads in African economies. It is also found that both the credit to the private sector and the turnover ratio have significant relationships with private investment. However, the effect of turnover ratio on investment is insignificant. The insignificance of the stock market indicator reflects the low stage of stock market development in most of the African economies. In addition, it is found that the informal sector is still large and has positive effects on private investment and that institutional variables play a key role in determining the level of private investment in Africa.

A vibrant private sector is an essential pre-requisite for triggering economic dynamism, enhancing productivity, diffusing new industrial technologies, maintaining competitiveness, contributing to entrepreneurship development and reducing poverty (Niklaus, 2005). Although government actions and external support are undoubtedly necessary, the required level of growth will only be attained and maintained as a result of sustained private sector activity. The private sector is known to generate wealth to stimulate growth, revenue to improve public services, and employment to lift people out of poverty. However, the degree to which the private sector contributes to growth and poverty alleviation greatly depends on its ability to gain access to critical financial services.

This study explores the relationship between financial sector development and private investment. It uses panel data covering the period 1991–2004 from 18 countries in Africa. The study establishes a negative relationship between interest rate on deposits and private investment, signaling the presence of huge interest rate spreads in African economies. In addition, a positive relationship between both the credit to the private sector and the turnover ratio and private investment is found. However, the effect of turnover ratio on investment is insignificant. The insignificance of the stock market indicator is important to us as it reflects the low stage of stock market development in most of the African economies. The results also point out that despite two decades of reforms, the informal sector is still large and has positive effects on private investment. It is also found that those institutional factors represented by the corruption perception index, checks and balances and the index of the economic freedom have a role to play in driving private investment in Africa.