Kenya drops four places in Africa markets ranking


Kenya drops four places in Africa markets ranking
NSE PLC Chief Executive Officer Geoffrey Odundo during a past function. PHOTO / FILE

In Summary

  • Kenya’s overall score of 47 points is meanwhile nine points lower than the 58 points garnered last year.
  • While the index denotes the country’s progress in sustainable finance, Kenya has made backward steps in four of the six pillars measured in the index.
  • This to include market depth, access to foreign exchange, macroeconomic opportunity and the enforceability of standard master agreements.

Kenya now lies outside the top ten places in the latest 2021 Absa Africa Financial Markets Index published on Wednesday in 11th spot.

This to mark a drop of four places in the index featuring 23 continental financial markets from 7th place in 2020.

Kenya’s overall score of 47 points is meanwhile nine points lower than the 58 points garnered last year.

While the index denotes the country’s progress in sustainable finance, Kenya has made backward steps in four of the six pillars measured in the index.

This to include market depth, access to foreign exchange, macroeconomic opportunity and the enforceability of standard master agreements.

Kenya has nevertheless scored higher in market transparency, tax and regulatory environment and held its 9th spot in capacity for local investors albeit with a lower points tally.

Moreover, the index lauds Kenya which is among nine countries to formulate policies incentivising the issuance of sustainable financial products including sustainable bonds, equities and mutual funds.

Kenya’s poor FX availability score is meanwhile tied to weakened liquidity in FX markets.

Like its African peers, Kenya’s lowest score is on the capacity for local investors, 29 points, which is indicative of weak potential on the part of domestic pension markets to drive local market activity.

Kenya’s highest score of 62 comes in macroeconomic opportunity, a pillar in which all 23 countries scored full points for budget transparency.

South Africa, Mauritius and Nigeria have retained their spot as the top three financial markets on the content and in the same order as 2020.

Other countries occupying the top 10 places include Ghana, Uganda, Botswana, Zambia, Namibia, Egypt and Malawi.

Lesotho, Cameroon and Ethiopia meanwhile occupy the last three slots on the index.

The Absa Africa Financial Markets Index evaluates financial markets development and highlights economies with the most supportive environment for effective markets.

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