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Absa Group and OMFIF launch 2019 Africa Financial Markets Index |22 November 2019

Absa Group and OMFIF launch 2019 Africa Financial Markets Index

Mr Schalkwyk addressing the gathering at the Africa Financial Markets Index launch on Wednesday (Photo: Jude Morel)

Seychelles has progressed the most since the first edition of the Index – its score climbed to 47 from 29, partly owing to its growing pool of local assets.

That is a key conclusion presented by think tank OMFIF of theAfrica Financial Markets Index launched on Wednesday at the Eden Bleu Hotel.

The extensive research is sponsored by Absa Group Limited, proudly serving Seychelles as Barclays Bank, and focuses on investment prospects in Africa for both international and local investors.

The Index ranks the maturity, openness and accessibility of 20 financial markets in Africa, based on both qualitative and quantitative criteria.

Development of local investor capacity and ability to attract foreign capital are keypoints of focus.

“Financial market development also offers additional growth and funding opportunities for local businesses, providing access to long-term financing in order to help them overcome some of the challenges of high costs of lending across the continent,” said Barclays’ managing director, Johan Van Schalkwyk.

“We believe that Seychelles’ capital markets can leverage the findings and recommendations of the Africa Financial Markets Index report to focus our collective efforts on making Seychelles a country where emerging businesses are able to access the investment required to spur economic growth,” he added.

The markets surveyed in 2019 to compile the extensive index comprises South Africa, Mauritius, Kenya, Namibia, Botswana, Nigeria, Tanzania, Zambia, Rwanda, Uganda, Egypt, Morocco, Ghana, Seychelles, Mozambique, Ivory Coast, Angola, Senegal, Cameroon and Ethiopia.

The Index focuses on six fundamental pillars for financial market performance:

  • Market depth
  • Access to foreign exchange
  • Market transparency and regulation
  • Capacity of local investors
  • Macroeconomic opportunity
  • Enforceability of international financial agreements

It was found that Seychelles’ score improved on Pillar 3 – Market transparency, tax and regulatory environment from 26 in 2018 to 45 in 2019.

The country is also among three that are considering enacting some form of netting legislation, which would earn Seychelles higher marks in the coming years.

The Index tracks progress annually, supplying a toolkit for countries wishing to build financial infrastructure.

African countries, including Seychelles, are implementing a growing number of national policy frameworks for market development. One of the greatest constraints on growth-enhancing investment is the low capacity of local investors, partly linked to limitations on the range of assets for local investors.

The Index can be viewed at: https://www.absa.co.za/corporate-and-investment-banking/news-and-events/events/absa-africa-financial-markets-index/

 

 

Contributed by Barclays Bank Seychelles

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