Abstract

This paper investigates the historical development and political institutions of capital markets in Nigeria and Kenya for the period c.1945-1970. Tracing the genesis and institutional conditions back to the financialisation policies of the late colonial period, the paper disaggregates the economic and political actors involved in the establishment, regulation and operation of capital markets in Nigeria and Kenya. Using colonial Nigeria and Kenya to examine capital market variations between “peasant export” and “settler” colonies, the paper provides original insights into the dynamics of development finance and private sector participation during and immediately after the countries’ decolonisation processes. What function did stock exchanges serve as independent African countries transformed their political and economic environment? The analysis of the operations on the Lagos Stock Exchange and Nairobi Stock Exchange immediately after political independence goes on to consider the economic effects of state-led “Africanisation” policies on the participation of African financial capital and individual investors. The regulatory changes implemented to satisfy the needs of local, regional and international investors highlight some of the institutional challenges of financial development in post-independence Africa. As such, this paper contributes to the expanding literature on the history of private enterprise and financial intermediaries in late colonial and early post-independence Africa.

For Lagos Stock Exchange, please consult: https://doi.org/10.1515/zug-2022-0016