Financial Development, State and Business Finance.

Through this topic, we first examine the interaction between financial development and the real economy from a macroeconomic perspective by analyzing the state of the relationship between financial development and domestic investment in African states. Second, we examine the interaction between financial development and the real economy from a micro-economic perspective by analyzing the effect of microfinancial development on the financing of businesses, particularly African small and medium-sized businesses.

Our thesis is that finance is important not only for domestic investment in African countries but also for the growth of small and medium businesses. It is in line with the economic literature that states that financial development causes economic growth.