The aim of this paper is to try and evaluate the consequences of political activities on the capital markets
of developing economies. A thriving capital markets is key to economic development of any nation.
This is especially so due to need to seize each and every opportunity to grow new products, explore
new markets and create employment for the citizens of these nations that tend to also be amongst the
poorest in the world.
There is need to strengthen the Foreign Investment Protection Act to foster confidence for foreign investors on the government commitment to protect their investment.
Owen Koimburi
These nations also happen to have young populations that need employment, and
such these nations need each and every opportunity to grow new businesses and develop existing ones.
weak legislation and policies also characterize these nations, and as observed by Schoenmaker &
Schramade (2019) this is not good for investor confidence and undermines a country’s ability to attract
external capital which is vital for value creation. Equally, democracy hasn’t quite taken root in many of
these nations particularly the rules and regulations and laws relating to national and civic elections.
Capital markets of these nations also have not gained traction and many of them have recently been
started as soon as these nations attained self-rule.