The index assesses countries according to six pillars: market depth; access to foreign exchange; market transparency, tax and regulatory environment; capacity of local investors; macroeconomic opportunity; and enforceability of financial contracts.
Even as challenging market conditions weighed on performance in the index, 19 of the 26 countries improved their scores relative to last year, according to the report. This was largely due to broad-based progress in developing sustainable financial markets, which is becoming increasingly important to global investors.
The report noted that Namibia, Uganda and Kenya are among the countries with the greatest increase in scores. They have bolstered their environmental, social and governance market frameworks, and, in Kenya, climate risks have been incorporated into financial stability regulation. Greater product diversity has also lifted scores for most countries, including Angola and Lesotho, which both issued their first initial public offerings over the past year.
Further findings from the report showed that South Africa, Mauritius and Nigeria maintain their positions in the top three this year, as they continue to score highly on measures of market depth, transparency and enforceability of legal agreements.
Uganda rose two places to fourth, while Namibia and Kenya improved their ranking within the top 10. Scores for these three countries primarily rose due to progress in adopting ESG policies and frameworks. In the East Africa region, Uganda ranked number one, followed by Namibia with a score of 65, Kenya came third with a score of 61, followed by Tanzania with 55 and Zambia 54.
Most developed financial markets in Africa 2022
