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Tanzania drops in Africa financial market ranking

Dar es Salaam. The Dar es Salaam Stock Exchange (DSE) fell four positions in Africa Financial Market Index 2018 ranking.

The index was published by South African Absa group. The AAFMI 2018 has shown that Tanzania fell to 15th position out of 20 reviewed markets in Africa this year, scoring 43 points, from 11th position attained in 2017.

The index tracks progress on financial markets development annually across a range of countries and indicators.

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Tanzania is now No. 4 in East Africa behind Kenya which is the third in Africa this year with 65 points, from fifth in 2017 and Uganda which has remained at number 10 during the period under review.

Rwanda, which was ranked the eighth in 2017 also dropped to the 11th position this year from the 8th in 2017.

The latest index – which evaluates market development in 20 countries, highlighting economies with clearest growth prospects – shows that South Africa’s ‘twin peaks’ strategy for improving financial regulation stood out among the frameworks introduced over the past year, boosting performance for the index as a whole.

The report shows that the country also has the lowest market capitalisation on per cent the gross domestic product among EAC member states with only 19 per cent, lower than Kenya with 31 per cent, Rwanda with 38 per cent and Uganda with 29 per cent.

The DSE total turnover of equities to percentage of total market capitalisation is higher at two per cent, than Rwanda and Uganda with one and zero per cent respectively.

Kenya has the highest position at seven per cent.

Tanzania’s total turnover on bond market to percentage of outstanding debt was also high at 12 per cent than Uganda and Rwanda with zero and two per cent but was behind Kenya with 40 per cent.

DSE was incorporated in September 1996 and trading started in April 1998. It is a member of the African Stock Exchanges Association. The exchange is open from Monday through Friday. The activities of the exchange are monitored and supervised by the Capital Markets and Securities Authority .

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