Note: 2021 scores account for newly available data and methodological changes, so may not reflect those published in AFMI last year.
David Marsh, chairman of OMFIF, commented: ‘Africa looks an attractive investment destination based on capital market structures that actively guide adequate risk pricing. There are many areas on which to build. Unstinting efforts by the private sector – together with the International Monetary Fund, multilateral development institutions and our network of partner institutions around Africa – are required to extend these positive changes.’
Charles Russon, Chief Executive of Absa Corporate and Investment Banking said the index has had a positive impact on the development of financial market infrastructure, product development and policy on the African continent. ‘Now into its 6th year, this index has stimulated transparency in markets, enhanced policy-making and allowed for the development of Africa-focused alternative investment products that will have an impact for generations to come. We look forward to continuing to contribute to the building of more robust markets and attracting investment capital.’
The index was also welcomed by influential global policy-makers. Antonio Pedro, acting executive secretary of the United Nations Economic Commission for Africa, said: ‘The 2022 Absa Africa Financial Markets Index, with strengthened geographic coverage and thematic scope, serves as an important tool for policy-makers and regulators in the development of financial markets on the African continent. It provides in-depth comparative analysis to support the formulation of policies for long-term financial market development.’
About the index
Now in its sixth year, the Absa Africa Financial Markets Index evaluates countries’ financial development based on measures of market accessibility, openness and transparency. The aim is to show how economies can reduce the barriers to investment which can, in turn, boost sustainable growth.
Scores are determined by the relative, rather than the absolute, performance of each country across six key pillars: market depth; access to foreign exchange; market transparency, tax and regulatory environment; capacity of local investors; macroeconomic environment and transparency; and legal standards and enforceability.
In addition to quantitative data analysis, OMFIF conducted surveys of over 50 organisations across Africa to produce the index. This includes responses from central banks, securities exchanges, regulators, market participants, accounting firms and international development organisations.
The index has become a benchmark for the investment community to gauge African countries’ market infrastructure and is used by policy-makers to learn from developments across the continent.
This year’s index was launched during the IMF/World Bank meetings in Washington on October 13 [Absa Africa Financial Markets Index launch 2022 - OMFIF].
The report is available for download here: [LINK]
For further information contact:
Nikhil Sanghani, Managing Director, Research OMFIF
James Fitzgerald, Deputy Head of Events and Marketing, OMFIF
Andile Makholwa, External Communications Manager, Absa Group
About Absa Group Limited
Absa Group Limited (‘Absa Group’) is listed on the Johannesburg Stock Exchange and is one of Africa’s largest diversified financial services groups.
Absa Group offers an integrated set of products and services across personal and business banking, corporate and investment banking, wealth and investment management and insurance.
Absa Group owns majority stakes in banks in Botswana, Ghana, Kenya, Mauritius, Mozambique, Seychelles, South Africa, Tanzania (Absa Bank Tanzania and National Bank of Commerce), Uganda and Zambia and has insurance operations in Botswana, Kenya, Mozambique, South Africa and Zambia. Absa also has representative offices in Namibia and Nigeria, and securities entities in the United Kingdom and the United States.
For further information about Absa Group Limited, visit www.absa.africa
OMFIF is an independent think tank for central banking, economic policy and public investment, providing a neutral platform for public and private sector engagement worldwide. With teams in London and the US, OMFIF focuses on global policy and investment themes relating to central banks, sovereign funds, pension funds, regulators and treasuries. Global public investors with investable assets of $43tn are at the heart of this network.