In this paper the researcher is primarily concerned with assessing the degree ofrncapital mobility in Sub-Saharan African countries. By applying the methodologyrnas proposed by Feldstein and horioka (1980), later termed the "Feldstein-rnhoioka puzzle", the researcher tests the hypothesis of perfect capital mobilityrnagainst the alternative of imperfect capital mobility. The provision is made inrnthis model to show the dependency of the lesser developed Sub-SaharanrnAfrican countries on international finance and aid and how a more openrneconomy contributes towards improving the level of capital movement in theserncountries. The researcher also assess the change in the degree of capitalrnmobility over 'the time period in an effort to test whether institutional andrnpolitical changes have been successful or not.rnStationary panel data estimation techniques are applied for the sample of 25rnSub-Saharan African countries over the time period 1988-2003. The benefits ofrnusing one-way error component models are derived from simultaneously byrnemploying time and cross-section dimensions of the data, resulting in arnsubstantial increase in the degrees of freedom. The fixed and random effectsrnmodels enable us to acknowledge country heterogeneity within the panel,rnmaking provision for differences across countries like capital control policies,rnfinancial and capital market structures and exchange rate regimes.