ABSTRACT
Despite extensive restructuring of formal financial institutions in many countries of sub-Saharan Africa since the mid-1980s, savings-investment performance remains poor and economic growth has been heavily dependent on official external finance. The aim of the present study is to explain the limited developmental effects of these financial sector reforms. Given the extreme fragmentation of financial markets, we set out a number of research objectives at the outset, including analysis of:
1 the extent of liberalization and financial sector reforms, and the effect of these policies on financial systems;
2 the causes of fragmentation and segmentation of financial markets; 3 the nature of market specialization by formal and informal segments; 4 existing and potential relationships between and within segments, including an investigation of gaps in
financial services and credit for real sector development; 5 appropriate policy frameworks for financial sector development.
