Stock markets role in unlocking Sub-Saharan Africa private sector financing

This dataset examines the relationship between stock markets and private investment financing in 13 Sub-Saharan African countries from 2008 to 2022. The dataset includes variables extracted primarily from the World Bank Data such as gross fixed capital formation, stock market turnover ratio, liquid liabilities, gross domestic savings, and foreign direct investment. Supplementary credible data was also uploaded to complement missing values. Findings show that stock market turnover ratio and foreign direct investment positively impact private investment, while liquid liabilities and gross domestic savings have a negative impact. These insights provide valuable information for policy decisions and investment strategies in the region, highlighting the importance of stock market development and foreign direct investment in enhancing private investment in Sub-Saharan Africa. This study examines the role of stock markets in the long-term financing of the private sector in Sub-Saharan African countries, using panel data from 13 countries and employing the ARDL model. Results present a significant positive relationship between the stock markets and private investment financing. The study uses diagnostic tests and robust error correction to address heteroskedasticity. The primary data source is the World Development Indicators, with supplementary data from other reputable sources. The publication relates to the dataset by providing an analysis of the relationship between stock markets and private investment financing in Sub-Saharan Africa. Key findings reveal a significant long-run relationship between stock market and private investment financing, with a coefficient of 2.7. The results also show a negative impact of liquid liabilities and gross domestic savings on private investment, while foreign direct investment has a positive relationship. The research recommends that governments in Sub-Saharan Africa support stock market growth and liquidity, create policies that attract foreign direct investment, and establish investor protection boards. Central banks are advised to focus on increasing deposit interest rates, and investors should be aware of the potential benefits of investing in the region. The study suggests further research on strategies to boost private investment in Zimbabwe and the effectiveness of policies aimed at attracting FDI in Sub-Saharan Africa. No funding was received for this research. The authors declare no competing interests. Isabel Malaba and Atanas Sixpence collaboratively contributed to the conception and design of the study. Isabel Malaba was responsible for the data analysis and interpretation, with guidance and oversight from Atanas Sixpence. The authors contributed actively to drafting and revising the paper critically.