Abstract

The aim of the article has been to ascertain the impact of the global commodity price declines on SSA’s financial economy. Analysis showed that the global commodity price deterioration impacted SSA financial systems in many areas including increased borrowing costs, financial sector strains, and tighter private sector funding conditions. The article analyzes the traditional role of the financial sector in channeling capital to support the real economy in SSA. Also discussed are the linkages of the price shock on the continent’s financial economy. Finally, the paper outlined the outlook and growth prospects for SSA financial sector stability and long-term development.

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