Financial markets in Sub-Saharan Africa show potential for regional integration.
Equity markets in developing countries are becoming more important due to global financial market trends. By studying Sub-Saharan African countries, researchers found evidence of potential integration between their financial markets. This means that returns volatility is being transmitted across these markets, showing connections between them. However, the markets are not fully integrated yet due to issues like low liquidity and incomplete regulations. To achieve a fully integrated financial community in Africa, significant regulatory reforms and harmonization are needed.