Despite financial liberalisation under IMF and World Bank reforms, SSA’s financial sector development (FSD) still lags other regions in the world, contributing to SSA’s economic volatility and lower investment growth. Low sovereign credit ratings (SCRs), especially in resource-dependent states, increase borrowing costs and socio-economic and political risks. This chapter commences with an exploration of SSA’s bank- and market-led FSD, the effects of SCRs on SSA’s FSD, the interaction between FSD and democracy, and SSA’s financial resource curse. Thereafter, the chapter focusses more explicitly on the relationship between FDI and FSD.