When people can be involved in the financial systems, they’re better able to begin and expand businesses, invest in their children’s education, and absorb financial shocks.
Sub-Saharan Africa has a population with many lives staying at the economic downstream, and almost certainly underdeveloped. The financial inclusion gender gap and income gap persisting just like in other continents, though higher in Sub-Saharan Africa. World Population estimates based on 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 people of the world) and by the end 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%) set alongside the other continents with an annually population rate change (increase) of 2.55% – the greatest among all continents. Nearly all of its people (59.8%) have lived downstream (rural areas and villages) sometimes out of the mainstream economy.Prescott Financial Advisors Policy targeting could be difficult such scenarios, and identifying individuals who lack use of financial and economic inclusion includes a huge financial cost in itself, though the benefit in doing this outweighs the fee in mere numbers and requires commitment from leaders and managers of the respective economies. Along with a widespread phenomenon of non-perfect, untrusted, and in some cases non-existing data on the continent, that could 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 among 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 like an account either at the lender or mobile money could mean significant possibilities of opportunities untapped. Globally countries have realized the significance of achieving inclusive societies and supports efforts at maximizing financial inclusion. Sub- Saharan Africa has made some strides through the years in financial and economic inclusion in this regard at individual country levels.
Earlier this season and shortly before I surrendered my Financial Services Authority permission to provide financial advice I met Bruce and Theresa, my long standing clients of some thirty years. The meeting was arranged to say farewell and to close our professional (but not social) relationship, and to finalise their plans for their retirement.
The meeting lasted for most of the day, and whilst their finances were on the agenda and were managed, much of the meeting revolved around how they were going to reside in retirement, what they might and must do, how they were going to keep up family ties, decisions about their property and the majority of facets of life in retirement. We also covered their relationship with money, dealing specifically with how to alter their working life attitude of saving and prudence to locating the courage to spend their time and money on making the absolute most of these lives in retirement. Whilst I surely could demonstrate mathematically that their income and assets were a lot more than sufficient to permit them to reside a fulfilled life in retirement, we’d to manage some deep emotional blocks to spending, specifically worries that they would go out of money.
The financial markets sector is one important section of public concern in Africa. The requirement for adequate regulation and supervision of Financial Markets being an important mechanism for the promotion of economic development in African countries can not be overemphasized. Financial markets regulation remains a very sensitive and complex activity when it comes to governmental policy development, with relation to defining strategic options related to financial regulation. This information reviews the present status of financial farkets, the legal and regulatory frameworks in the Southern African region, with a special 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 know its rationale, objectives, approaches and the practical methods for defining a regulatory framework for a modern African financial market and system. At any given time many experts are calling for liberalization of financial services in Africa, it is very 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, such as 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 as much as possible an obvious comprehension of policy development, key issues and challenges relating to the regulation of financial markets in the Southern African region.
The terminology used in the financial markets jargon is considered to be highly technical and can some times be confusing. While we attempt to help keep a low technical language through this paper, it is quite impossible to steer clear of the specific concepts used in the financial profession. For many key concepts, a concise glossary of most of the technical words is provided at request by the author.