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OMFIF Bulletin Staci Warden article cover

Virtuous circle for east Africa: Regional capital market integration is the only option

Apr 08, 2015
Publisher: Official Monetary and Financial Institutions Forum

Over the past decade, the major economies of east Africa – Kenya, Uganda, Tanzania, and Rwanda – have enjoyed annual growth rates of well over 5%. But unlike in Latin America and east Asia, where economic growth has spurred impressive growth in capital markets, in east Africa capital market development has lagged considerably.

With the exception of Kenya, the East African Community, made up of Burundi, Kenya, Rwanda, Tanzania, and Uganda, has among the smallest and least developed capital markets in the world, even as a share of GDP.

What reforms could increase the flow of capital in their markets – and how would these affect growth?