Kenya named third most advanced financial market in Africa
Absa Group Ltd has for the second consecutive time listed Kenya as the third most advanced financial market in Africa in its latest edition of the Absa Africa Financial Markets Index.
The country was ranked behind winners South Africa and Mauritius, but ahead of its regional neighbours, Uganda, Rwanda and Tanzania.
The score covered market depth, openness, transparency, legal environment and macro opportunity. The countries are scored on a scale of 10 to 100.
According to Barclays Bank of Kenya head of markets Anthony Kirui, the amount of bonds listed on the Nairobi Securities Exchange almost doubled to $17.5 billion (Sh1.8 trillion) from $8.8 billion (Sh911.3 billion) the previous year.
Market capitalisation, which stands at six per cent, propped the country’s financial markets depth to realise a score of 65 with Tanzania coming in at 55, Rwanda at 53, Uganda at 52 and Ethiopia at 27.
Now in its second year, the index records openness to foreign investment of countries across the continent, an indicator of the attractiveness of Africa’s capital markets for use by policy makers, investors and asset managers around the world.
Of the six pillars, Kenya registered the highest ranking on legality and enforceability of standard financial markets master agreements space with 96 points, a factor attributed to the adoption of Global Master Securities Lending Agreement, which provides a contractual framework for securities lending arrangements.