Tanzania climbs two places in Absa’s financial market index
Deputy Governor– Economic and Financial Policies, Dr Yamungu Kayandabila (fourth right), and Absa Bank Tanzania Chairman of the Board of Directors, Mr Paul Makanza launches the 2023 Absa's Africa Financial Markets Index report in Dar es Salaam today. Third from the right is Absa Bank Director of Global Markets Esther Maruma.
What you need to know:
- The country now ranks 10th out of 28 countries, compared to last year’s 12th while its score has risen by a half point to 55.5 this year, according to the Absa Group’s Head of Research, Mr Jeff Gable.
Dar es Salaam. Tanzania has made significant strides in enhancing its financial market ecosystem, climbing two places in the 2023 edition of the Absa Africa Financial Markets Index.
The country now ranks 10th out of 28 countries, compared to last year’s 12th while its score has risen by a half point to 55.5 this year, according to the Absa Group’s Head of Research, Mr Jeff Gable.
The Absa report rates countries based on six pillars including market depth, access to foreign exchange, and market transparency.
Other pillars are tax and regulatory environment, capacity of local investors, macroeconomic opportunity, and legality and enforceability of standard financial markets master agreements.
Speaking yesterday during the launching of the report in Dar es Salaam, the Deputy Governor Bank of Tanzania – Economic and Financial Policies, Dr Yamungu Kayandabila, said the annual report has become an invaluable tool in assessing the performance and potential of financial markets across Africa.
“This report provides us with a comprehensive analysis of the continent and Tanzania’s financial markets performance, highlighting the country's strengths and areas for improvement.
“This report is a testament to the dedication and hard work of policymakers, regulators, and market participants in Tanzania who have worked tirelessly to create an enabling environment for financial markets to thrive,” Dr Kayandabila said.
He said Tanzania's improvement is attributed to its commitment to financial inclusion, regulatory reforms.
The infrastructure development has played a pivotal role in driving its progress, he said.
Dr Kayandabila said one of the key messages from the report is Tanzania's strong performance in financial market transparency.
“Transparency is the bedrock of a healthy financial market, as it fosters investor confidence, attracts foreign investment, and promotes economic growth. By prioritizing transparency, Tanzania has created an environment where market participants can make informed decisions with greater certainty, facilitating the flow of capital and stimulating economic activity,” he said.
Speaking on behalf of Absa Bank Tanzania managing director, the bank's director of global markets, Ms Esther Maruma, said the Absa Africa Financial Markets Index has endeavored to demystify the continent as an investment destination since its launch in 2017,
“We do this by applying global market standards on key issues such as market accessibility, openness, and transparency.
The aim is to measure progress in the development of capital markets and demonstrate to individual countries the actions they could take to attract international investment to their markets,” he said.
