Africa, particularly sub-Saharan Africa, has seen rapid growth in the number of stock exchanges and a stock market capitalization boom has developed over the last 15 years. However, African stock markets function in a volatile territory, albeit the volatility has been reducing overtime. It is important to have a good appreciation of the risk factors that potentially affect stock markets in Africa. A vital source of integrating Africa into the global financial economy is the existence of well-functioning domestic stock markets. In cataloguing policy measures for stock market development, one should go beyond those which help to attract foreign capital. Policy measures should target mobilization of domestic resources through the cultivation of attractive investment opportunities and fostering deep and well-functioning domestic stock markets. Required: (a) Critically, examine the 10 key policy measures that are regarded as vital for developing and building capacity of African stock markets. (b) What are at the heart of the challenges these policy prescriptions intended to address in the African context?