Accepted: December 22nd, 2021

Published: December 31st, 2021

The broad objective of this study was to investigate the effects of global economic recession on capital market development in selected African countries. The specific objectives of this study are to measure the effect of global economic recession on total market capitalisation in selected African countries, to determine the effects of global economic recession on all share indexes of in selected African countries, ascertain the effect of global economic recession on the stock market value in selected African countries. Investigate the long-term relationship between global economic recession and capital market development in these selected African countries. Panel least square regression method was used for this analysis. Global economic recession significantly affected total market capitalization of capital market development of these selected African Countries within the period. Global economic recession significantly affected all share index of capital market development of these selected African countries for the period. Global economic recession significantly affected the stock market value of capital market development of these selected African countries for the period. There is a long-run relationship existing between the global economic recession and capital market development in these selected African countries of Nigeria, South Africa and ghana for the period under review. The effects of global economic recession on capital market development could not change the incentive structure and the challenge to develop a near-perfect capital market that will prevent risk-taking behaviour of investors for quick profit-taking on stock market deals so as to enhance government policy in mitigating the economic recession, efforts should be driven by the stimulus to increase capital gains to sustain the stability of the weak global economy of African countries. In order to bring the growth level back to the pre-recession level, all share indexes should be adjusted to reduce higher borrowing costs and lower the levels of credit and capital flow to developing countries. Government should create consumption-driven policies rather than proposing a new economic recession strategy or macro-economic development policy that are not driven by the stock market value of the capital market. Drive for self-subsistence and sustenance by these selected African countries will further be enhanced by taking advantage of the interplay of these capital market development indicators that have shown long-run relationships existing between them so as to improve economic growth in both the short and long run