Harnessing the synergies of independent central banks and human capital for enhanced financial sector development in Africa

Using panel data from 2004 to 2012, we employ a two-step system GMM estimation technique, with robust standard errors, collapsed instruments and illus-trate marginal effects of central bank independence on financial development in Africa. We also examine the moderating roles human capital, proxied by literacy rates CBI-financial nexus. find that, countries higher rates/human positive impact dejure CBI is enhanced. Higher however, worsen negative de facto CBO devel-opment. Independent banks can be made more effective achieving through governments improving rates. The study first empirically using both measures explaining this relationship