Off-topic: Any idea why African stock markets have been moving sideways for years now despite continued growth both of populations and technology,and both for struggling as well as more developing nations like Kenya, Nigeria, or even South Africa?
African government officials are often more loyal to their clan than to the government. As a result, you have very poor governance and a lot of corruption in most African countries. In South Africa, governance quality changed post-apartheid.
But shouldn’t we see some differences between countries in Africa, then? Kanya in particular seems to be much more progressive and have better governance than, e.g., Congo, but growth is rarely above 1% per year.
The cynical and/or woke answer is “colonialism”. The growth is not captured by companies on those exchanges, but by US, EU, and Asian companies. A more neutral hypothesis (for which I have no evidence and have no clue about the truth of it) is that much of the growth is via new companies more than increase in price of existing companies, so no index will show the increase.
Off-topic: Any idea why African stock markets have been moving sideways for years now despite continued growth both of populations and technology,and both for struggling as well as more developing nations like Kenya, Nigeria, or even South Africa?
African government officials are often more loyal to their clan than to the government. As a result, you have very poor governance and a lot of corruption in most African countries. In South Africa, governance quality changed post-apartheid.
But shouldn’t we see some differences between countries in Africa, then? Kanya in particular seems to be much more progressive and have better governance than, e.g., Congo, but growth is rarely above 1% per year.
The cynical and/or woke answer is “colonialism”. The growth is not captured by companies on those exchanges, but by US, EU, and Asian companies. A more neutral hypothesis (for which I have no evidence and have no clue about the truth of it) is that much of the growth is via new companies more than increase in price of existing companies, so no index will show the increase.