Financial sector development - Sida

6.6 Capital requirements for infrastructure projects 29
6.7 Need to restructure social security systems 29
6.8 Other factors 30
7. FINANCIAL SECTOR DEVELOPMENT IN AFRICA 30
7.1 Mobilisation of financial resources in Sub-Saharan Africa 30
7.2 Financial systems in Sub-Saharan Africa in a period of major reform 32
7.2.1 Commercial banks 32
7.2.2 Reform Programmes 34
7.2.3 Capital markets and international capital flows 35
7.2.4 The role of the state in financial markets 36
7.3 Financial systems and policies in Africa and East Asia: a comparison 36
7.4 The informal finance sector in developing countries 41
7.4.1 The informal sector and rural credits 41
7.4.2 Provision of microfinance 43
7.5 Private capital flows to recipient countries in Sub-Saharan Africa 45
8. THE SWEDISH RESOURCE BASE 50
8.1 General considerations 50
8.2 Assessment of the domestic resource base 50
8.3 Experience from cooperation with the resource base 51
8.4 Conclusions and recommendations for future cooperation with the resource base 53
8.4.1 Alternative ways of using the resource base 53
8.4.2 Recommendations for the future cooperation with the resource base 54
9. SIDA’S PROVISION OF CAPITAL RESOURCES 54
9.1 General considerations related to provision of capital 54
9.2 Credits and guarantees 56
9.3 Microfinance 56
9.4 Investments in equity 57
9.4.1 Advantages 58
9.4.2 Disadvantages and risks 58
9.4.3 How to organise ownership 59
10. PROPOSED SIDA POLICY ON FINANCIAL SECTOR DEVELOPMENT 61
10.1 Introduction and purpose 62
10.2 Definitions and role of the financial sector 62
10.3 Prerequisites for successful financial sector operations 63
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