In the recently released Absa Africa Financial Markets Index 2023, Uganda maintained its standing as the fourth-ranked country among the 28 nations surveyed. With a score of 63, Uganda showcased its continued commitment to a robust financial market environment.
The survey, conducted by the Absa Group and unveiled in the capital city, Kampala, highlighted a noteworthy achievement for Uganda. The inclusion of Ugandan government bonds in the FTSE Frontier Emerging Markets Government Bond Index elevated their global market visibility, enhancing Uganda’s presence on the international financial stage.
Within the East African region, Uganda secured the top spot, outpacing Kenya with a score of 59, Tanzania with a score of 55, and Rwanda with a score of 44.
On the continental scale, South Africa claimed the lead with a score of 88, followed by Mauritius at 77, and Nigeria at 67.
David Wandera, Executive Director of Absa Bank Uganda, pointed out during the survey release that while Uganda maintained its fourth-place position, the overall score experienced a slight decline from the previous financial survey, dropping from 64. This dip was primarily attributed to decreases in foreign exchange reserves and liquidity.
Wandera explained that the survey serves as a comprehensive evaluation of financial market development across countries, shedding light on economies that foster conducive environments for effective markets.
Jeff Gable, Chief Economist at Absa Group, emphasized the significance of the index, now in its seventh year, as a benchmark for the investment community. It serves as a tool for assessing market infrastructure in African countries and is utilized by policymakers to glean insights from developments across the continent. The Absa Group, a South African-based financial services group, continues to play a pivotal role in shaping perceptions of financial markets in Africa.
Gable highlighted the positive trend, noting that slightly over half of the countries in the index witnessed improved scores year on year. Additionally, more than 20 countries within the index have embraced some form of environmental, social, and governance-linked financial policies, underlining the growing importance of responsible and sustainable financial practices.
