ZAMBIA has moved up two places in the Absa Africa Financial Markets Index, signalling an improvement in the country’s attractiveness to foreign investment and improvements in its financial markets.
According to a statement availed to the Zambian Business Times – ZBT, Zambia’s ranking jumped to seventh position from nine out of 23 countries ranked, indicating an overall improvement in the country’s attractiveness to foreign investment based on six pillars that include access to foreign exchange and market transparency, among others.
The latest Index is the fifth edition having been officially launched back in 2017, whose aim is to show how economies can improve the market framework to bolster investor access and sustainable growth, and act as a benchmark for investors and policymakers.
The Index, produced by the Official Monetary and Financial Institutions Forum (OMFIF), an independent forum for central banking, economic policy, and public investment, and sponsored by Absa Group Limited, records the openness and attractiveness of 23 countries across the continent to foreign investment based on six fundamental pillars, which include market depth; access to foreign exchange; market transparency; tax and regulatory environment, among others.
Since its launch in 2017, the Absa Africa Financial Markets Index has shone a crucial light on the opportunities for investment in the region. Commenting on the latest findings in Lusaka recently, Absa Bank Zambia Plc Director, Head of Global Markets, Stanley Tamele said he had high hopes of seeing Zambia’s ranking improve even further.
“Over the last few years, we have seen the Index grow from strength to strength, with the market insights getting more expansive. What provides reassurance in the Index to stakeholders is OMFIF’s independence and the depth of their market insights, and we have high hopes that we can see Zambia’s rankings improve in the coming years,” said Tamele in a statement.
And Absa Group Limited Chief Executive of Corporate and Investment Banking Charles Russon observed that some markets had not recovered from COVID-19 as originally anticipated.
“While some might find it disheartening to see the average score across the board drop, Africa is navigating an extremely tricky economic atmosphere. Recovery from the COVID-19 pandemic has not been as straightforward as we would have hoped last year, and this has had a large impact on the twin challenges the continent faces in reinvigorating financial markets post-pandemic, while strengthening market infrastructure,” said Russon.
OMFIF chairman, David Marsh, said that innovations in sustainable finance and market infrastructure would be critical to ensuring that African markets remained competitive.
A glance at the country snapshot shows that from the six pillars, Zambia achieved its highest score in Legality and Enforceability of Standard Financial Markets Master Agreements, scoring 85 out of 100.
The country is currently in the process of reviewing the Companies and Insolvency Act to create a more robust regulatory framework for insolvency protection and practice.
