Kenya’s Market Attractiveness Drops 4 Places To 7th Position

By Juma / October 28, 2020 | 11:18 am




The Absa Bank of Kenya has released the Africa Financial Markets Index for the year 2020 with Kenya’s financial market attractiveness dropping to the 7th positions, 4 places down from 2019, and 7 points down from 2019.

 

This year’s AFMI is anchored on six pillars that include; Market depth, Access to foreign exchange, market transparency, tax, and regulatory environment, Capacity of local investors, macroeconomic opportunity, Enforceability of financial contracts, collateral positions, and insolvency frameworks.

According to the Index, Kenya ranked 5th on the Market Depth pillar. The country also ranked 10th on the Access to Foreign Exchange pillar, placed 9th in Market Transparency, Tax, and Regulatory Environment index. The country came in 9th on the Capacity of Local Investors pillar.

Kenya’s financial market is also ranked 11th in Macroeconomic opportunity pillar and 6th position on Standard financial markets master agreements.

Other countries

South Africa and Mauritius retain the top spots in the index, scoring 89 and 79, respectively. Nigeria, Botswana, and Namibia round off the top five. Namibia loses points from its failure to align with international contractual standards, while Nigeria’s lack of a unified exchange rate system pulls down its score.

“The Index evaluates financial market development in 23 Countries and highlights economies with the most supportive environment for effective markets,” said Absa Kenya in a statement.

“This report demonstrates to senior stakeholders and influencers across the continent and the world, that Absa maintains its commitment to the African continent and that we’re still open for business.”

Namibia leads in Pillar 4- Capacity of Local Investors. Its pension funds have shown rapid growth in recent years.  Namibia now has the highest level of pension assets per capita in the index.

On the other hand, Eswatini, a new addition to the index, has the largest pension funds relative to the size of its local market, which shows the potential available for local investors to propel market development.

Ghana rises the most in Pillar 2- Access to foreign exchange- with its foreign exchange liquidity increasing, as measured by interbank foreign exchange turnover.

Covid-19

The 2020 AFMI report comes at a time countries are trying to navigate through the Covid-19 storm. Most economies across Africa, including Kenya, have taken the hit from Covid-19 with the Central Bank of Kenya saying that the economy is to slow down this year.

READ: A Look At Absa Bank Kenya’s Bancassurance Product





About Juma

Juma is an enthusiastic journalist who believes that journalism has power to change the world either negatively or positively depending on how one uses it.(020) 528 0222 or Email: info@sokodirectory.com

View other posts by Juma


More Articles From This Author







Trending Stories










Other Related Articles










SOKO DIRECTORY & FINANCIAL GUIDE



ARCHIVES

2020
  • January 2020 (272)
  • February 2020 (310)
  • March 2020 (390)
  • April 2020 (321)
  • May 2020 (335)
  • June 2020 (327)
  • July 2020 (334)
  • August 2020 (276)
  • September 2020 (214)
  • October 2020 (233)
  • November 2020 (234)
  • 2019
  • January 2019 (253)
  • February 2019 (216)
  • March 2019 (285)
  • April 2019 (254)
  • May 2019 (272)
  • June 2019 (251)
  • July 2019 (338)
  • August 2019 (293)
  • September 2019 (306)
  • October 2019 (313)
  • November 2019 (362)
  • December 2019 (319)
  • 2018
  • January 2018 (291)
  • February 2018 (213)
  • March 2018 (278)
  • April 2018 (225)
  • May 2018 (238)
  • June 2018 (178)
  • July 2018 (256)
  • August 2018 (249)
  • September 2018 (256)
  • October 2018 (287)
  • November 2018 (284)
  • December 2018 (185)
  • 2017
  • January 2017 (183)
  • February 2017 (194)
  • March 2017 (207)
  • April 2017 (104)
  • May 2017 (169)
  • June 2017 (205)
  • July 2017 (190)
  • August 2017 (195)
  • September 2017 (186)
  • October 2017 (235)
  • November 2017 (253)
  • December 2017 (266)
  • 2016
  • January 2016 (165)
  • February 2016 (165)
  • March 2016 (190)
  • April 2016 (143)
  • May 2016 (245)
  • June 2016 (182)
  • July 2016 (271)
  • August 2016 (248)
  • September 2016 (234)
  • October 2016 (191)
  • November 2016 (243)
  • December 2016 (153)
  • 2015
  • January 2015 (1)
  • February 2015 (4)
  • March 2015 (166)
  • April 2015 (108)
  • May 2015 (116)
  • June 2015 (120)
  • July 2015 (148)
  • August 2015 (157)
  • September 2015 (188)
  • October 2015 (169)
  • November 2015 (173)
  • December 2015 (207)
  • 2014
  • March 2014 (2)
  • 2013
  • March 2013 (10)
  • June 2013 (1)
  • 2012
  • March 2012 (7)
  • April 2012 (15)
  • May 2012 (1)
  • July 2012 (1)
  • August 2012 (4)
  • October 2012 (2)
  • November 2012 (2)
  • December 2012 (1)
  • 2011
    2010
    2009
    2008
    2007
    2006
    2005
    2004
    2003
    2002
    2001
    2000
    1999
    1998
    1997
    1996
    1995
    1994
    1993
    1992
    1991
    1990
    1989
    1988
    1987
    1986
    1985
    1984
    1983
    1982
    1981
    1980
    1979
    1978
    1977
    1976
    1975
    1974
    1973
    1972
    1971
    1970
    1969
    1968
    1967
    1966
    1965
    1964
    1963
    1962
    1961
    1960
    1959
    1958
    1957
    1956
    1955
    1954
    1953
    1952
    1951
    1950