Financial Development in Sub-Saharan Africa

This paper provides a comprehensive review of financial development in sub-Saharan Africa and discusses how financial development can boost economic growth and make it more inclusive and less volatile. Building on a chapter in the April 2016 Regional Economic Outlook for sub-Saharan Africa, this paper provides an up-to-date panorama of various facets of financial development and how it has evolved over the past few decades. It draws on both country-specific and cross-country work undertaken in the African Department of the IMF, and also undertakes in-depth empirical analysis on issues such as the macroeconomic impact of financial development and its drivers. The analysis highlights how the region is performing compared with its peers – in areas where the region is doing particularly well such as theadoption of mobile banking technologies, as well as in areas where it is falling short. Finally, the paper also provides a detailed set of policy recommendations.