ABSTRACT
The linkage between development financing and structural transformation in Africa is critical. At the global level, financial and economic governance must also be reformed to improve the conditions of access to capital markets. The Economic Commission for Africa estimated what additional financial resources will be required to reduce poverty and inequality in Africa by half. Its estimates assume that savings, foreign direct investment, and official development assistance stay at their 2014 levels using different scenarios. Africa has undertaken a number of policy initiatives aimed at addressing the financing gap by relying more on public and private domestic resources to ensure the delivery of structural transformation based on inclusive growth and sustainable development. Savings is also an important ingredient if Africa wants to exploit its great potential since mobilising domestic savings enhances the development of financial systems. Financial and stock markets are other key sources of finance for development.
