| Summary: | The study examines the effects of macroeconomic factors and on capital structure of non- financial
firms in Africa. Using a recent data for an advanced dynamic model (2step system generalized
methods of moment (GMM)) technique for a panel data model of 406 non-financial firm of 8
developing African nations. The findings reveal that macroeconomic variables are determinant of
capital structure of non-financial in Africa. The findings show that financial managers can benefit
from raising additional capital as macroeconomic conditions are favorable. Moreover,
shareholders should employ firm managers with good knowledge of macroeconomic conditions and
also encourage them raise debt capital needed to fund positive investment. Lastly, Policymakers
should enact policies that promote financial market development because such policies would
complement the banks’ financing strategies and firms would have more access to debt capital.
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