Zambia’s overall performance in financial markets in Africa has been upgraded to eighth overall, up one place from ninth last year, according to the Absa Africa Financial Index.
The Index is a premier indicator of the attractiveness of Africa’s financial markets, for use by governments, investors and asset managers around the world.
According to the Absa Group Report, Official Monetary and Financial Institutions Forum (OMFlF) looks to provide a toolkit for African countries looking to strengthen the financial markets infrastructure.
Absa Group Limited is Barclays Bank Zambia’s parent company.
OMFIF stated that Zambia has improved its overall performance in financial markets this year.
“Data was gathered from more than 50 institutions, with respondents reflecting a mix of company executives, country experts, regional and local institutions, banks, securities exchanges, regulators and asset managers and investors. Zambia, Botswana, Kenya and Nigeria have moved up the Absa Africa Financial Markets Index whilst South Africa remains in top position, supported by strong financial market infrastructure and a robust legal framework. Zambia’s overall placing has improved to 8th overall, up one place from 2017 scoring the following specific performance across each pillar,” the Report reads.
The Report revealed that Zambia is continuously becoming an attractive investment destination
“Market depth up 3 places to 6th overall; access to foreign exchange up 5 places to 5th overall. Market transparency, tax and regulatory environment down 2 places to 14th overall on a score that was little changed; capacity of local investors – down to 17th from 12th in 2017 on a score that was little chance. Legality and enforceable of standard financial markets master agreements up one place to 4th in the 2018 ranking. The Index is a premier indicator of the attractiveness of Africa’s financial markets for use by governments, investors and asset managers around the world. ‘The second edition of the Absa Africa Financial Markets Index draws attention to the considerable investment opportunities and untapped market potential of countries across the continent,” read the Report.
In its second year, the OMFlF looks to provide a toolkit for African countries looking to strengthen the financial markets infrastructure, with the ultimate goal of encouraging open, transparent and accessible financial markets on the continent that are attractive targets for domestic and foreign savings and through which investment into Africa can be best realised.
By comparing peers across the African continent, the Index provides policymakers, regulators, market participants, governments and the private sector with the tools to discuss, debate and learn from one another on how best to enable more dynamic capital markets.
This year’s edition of the Index includes 20 countries, up three from last year’s inaugural report, with Angola, Cameroon and Senegal joining the Index for the first time.