When people can be involved 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 staying at the economic downstream, and almost certainly underdeveloped. The financial inclusion gender gap and income gap persisting exactly 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 next largest continent with a population of 1,256,268,025 (16% of the populace of the world) and by the finish of January 2018, 40.2% surviving in urban areas.
The continent has the highest 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 an annually population rate change (increase) of 2.55% – the highest among all continents. Nearly all of its people (59.8%) have lived downstream (rural areas and villages) sometimes out from the mainstream economy. Prescott Financial Advisors Policy targeting might be difficult such scenarios, and identifying people who lack use of financial and economic inclusion comes with a huge financial cost by itself, although the benefit in this outweighs the fee in mere numbers and requires commitment from leaders and managers of the respective economies. Coupled with a common 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 come 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 with its results in persistent poverty and inequality. Lack of use of basic needs as 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 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 supply 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 the majority of the day, and whilst their finances were on the agenda and were dealt with, much of the meeting revolved around how they were going to call home in retirement, what they could and have to do, how they were going to keep family ties, decisions about their house and the majority of facets of life in retirement. We also covered their relationship with money, dealing particularly with how to improve their working life attitude of saving and prudence to choosing the courage to pay their time and money on making probably the most of the lives in retirement. Whilst I was able to demonstrate mathematically that their income and assets were a lot more than sufficient to permit them to call home a fulfilled life in retirement, we had to deal with some deep emotional blocks to spending, particularly worries that they would 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 being an important mechanism for the promotion of economic development in African countries can not be overemphasized. Financial markets regulation remains a really sensitive and complex activity when it comes to governmental policy development, with relation to defining strategic options pertaining to financial regulation. This information reviews the present status of financial farkets, the legal and regulatory frameworks in the Southern African region, with a particular 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 grasp its rationale, objectives, approaches and the practical means of defining a regulatory framework for a modern African financial market and system. At the same time many experts are calling for liberalization of financial services in Africa, it is very important to analyze what are the rationale, advantages and implications of financial markets regulation for Southern African countries underneath the light of new international instruments and standards, including 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 around possible a definite knowledge of policy development, key issues and challenges associated with the regulation of financial markets in the Southern African region.
The terminology used in the financial markets jargon is regarded as being highly technical and can some times be confusing. While we attempt to keep a non technical language through this paper, it is quite impossible to avoid the specific concepts used in the financial profession. For some key concepts, a concise glossary of the majority of the technical words is provided at request by the author.