The article analyzes how financial integration affects economic activity and stability in African countries. It shows that integrating with global financial markets can boost investment, technology transfer, and economic growth, but also lead to instability. The impact of external capital flows on growth depends on initial conditions and policies. Financial instability was more severe in the 1990s, especially with portfolio investments. Official capital flows were more stable than private ones. Countries with open financial systems experienced more capital flow volatility, leading to moderate macroeconomic instability.