The 2022 Africa Financial Markets Index Report

Since its launch in 2017, the Absa Africa Financial Markets Index has shone a light on the opportunities for investment in the region. Now returning for its sixth edition, it is a vital part of policy-makers’ and market participants’ toolkits and a benchmark for international investors looking to commit to the region. Produced by OMFIF and sponsored by Absa, the index has expanded this year to 26 countries, with the addition of the Democratic Republic of the Congo, Madagascar and Zimbabwe. It records the openness and attractiveness to investment based on six fundamental pillars:

1. Market depth

2. Access to foreign exchange

3. Market transparency, tax and regulatory environment

4. Capacity of local investors

5. Macroeconomic environment and transparency

6. Legal standards and enforceability

The last two years have reinforced the need to develop domestic financial markets across these fronts to protect economies from external shocks. While disruption from the pandemic has faded, fresh challenges have emerged from the spillovers of the Russia-Ukraine war and tighter global financial conditions.

Despite these difficulties, the Absa Financial Markets Index report finds that capital market infrastructure has continued to improve across Africa. Based on quantitative data analysis and surveys of over 50 organisations, the report uncovers broad-based progress in developing ESG market frameworks, financial product diversity, and adopting digital technologies. Continued progress on these fronts will be crucial to improve Africa’s appeal and access to investors, enabling the continent to develop its resilience to any future external shocks.

Jeff will join us in person, having launched this report the previous week at the IMF Autumn Meeting

‍