The Bank of Tanzania Deputy Governor Economic and Financial Policies, Dr. Yamungu Kayandabila, has officiated the launch of the 7th Absa Africa Financial Markets Index 2023 (AFMI) report on November 15, 2023 at the Hyatt Regency Hotel in Dar es Salaam.
Speaking at the event Dr. Kayandabila commended Absa Bank for launching the AFMI as evidence of its commitment in promoting transparency and efficiency in financial markets.
‘The Absa Africa Financial Markets Index has become an invaluable tool in assessing the performance and potential of financial markets across Africa, and this morning, we gather here to discuss opportunities for Tanzania's progress,” said Dr. Kayandabila.
He said the 7th AFMI report “provides us with a comprehensive analysis of the continent and Tanzania’s financial markets performance, highlighting the country's strengths and areas for improvement.”
“This report is a testament to the dedication and hard work of policymakers, regulators, and market participants in Tanzania who have worked tirelessly to create an enabling environment for financial markets to thrive,” Dr. Kayandabila said.
The BoT Deputy Governor also announced that Tanzania has made significant strides in enhancing its financial market ecosystem, as evidenced by its improved score in the index. The country's commitment to financial inclusion, regulatory reforms, and infrastructure development has played a pivotal role in driving its progress, he said.
“What’s exciting to hear, is that the report’s coverage, this year, has grown to include 28 countries from 23 countries just two years back. Last year, the index welcomed the Democratic Republic of the Congo, Madagascar and Zimbabwe, and this year it has added Cabo Verde and Tunisia. This is great evidence that Absa is serious about continuing to improve coverage of the continent and consequently making the index more relevant and effective,” he added.
Dr. Kayandabila said that one of the key messages from the report is Tanzania's strong performance in financial market transparency. “Transparency is the bedrock of a healthy financial market, as it fosters investor confidence, attracts foreign investment, and promotes economic growth.”
Speaking on behalf of Absa Bank Tanzania Managing Director, the banks Director of Global Markets Esther Maruma said, since its launch in 2017, the Absa Africa Financial Markets Index has endeavored to demystify the continent as an investment destination.
“We do this by applying global market standards on key issues such as market accessibility, openness and transparency. The aim is to measure progress in the development of capital markets and demonstrate to individual countries the actions they could take to attract international investment to their markets,” she said.
On his part, the Head of Research for Absa Group Jeff Gable said Tanzania’s overall Absa Africa Financial Markets Index score rose by a half point to 55.5 this year, and the country climbed two places to 10th in the index.
He named the areas where Tanzania scored well as market transparency, tax and regulatory environment, market depth, macroeconomic environment and transparency, access to foreign exchange, capacity of local investors and legal standards and enforceability.