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Publication Date

1-1-2021

Abstract

African financial markets accommodate fewer international investors due to several reasons including its weak status in the market efficiency hypothesis. Studies have confirmed this along the years; however, the slow but steady evolution in these markets can also be noticed. This study covers eight (8) African financial markets and tests them under weak form in the market's efficiency forms. This form has been divided into three (3) categories based on the random walk concept (RW3, RW2 and RW1). Results show that only two (2) markets – Johannesburg Stock Exchange (JSE) and Uganda Stock Exchange (USE) – were able to meet the criteria of RW1. Three (3) markets (Kenya Stock Exchange, Lusaka Stock Exchange and Mauritius Stock Exchange) have failed right at the lowest form of weak efficiency form and the remaining four (4) were taken to the next test (RW2). Two (2) of them (Bourse Regionale de Valeurs Mobiles - BRVM and Nigeria Stock Exchange - NSE) also failed and the highest weak efficient form (RW1) test was carried out under the remaining ones (Johannesburg Stock Exchange and Uganda Stock Exchange) which they again successfully passed.

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