The Absa Africa Financial Markets Index, published by Absa in collaboration with the United Nations Economic Commission for Africa, ranks Cape Verde 16th among countries that have most developed their financial markets over the past year, in an analysis of 29 African nations.
Cape Verde fell two positions this year, dropping from 14th to 16th, yet the report highlights the approval of new legislation that “allows for the exploration of central bank digital currencies.”
Mozambique improved by one position, moving from 24th to 23rd, praised for its new financial inclusion strategy. Meanwhile, Angola, also moving up one position to 25th, is noted for the “impressive drop in inflation.”
The report “assesses financial markets development across the continent through the lens of transparency, accessibility, and openness, providing in its ninth edition a benchmark for market infrastructure and an opportunity for policymakers to learn from improvements made across the continent,” the document states.
The 29 economies represent about 80% of Africa’s population and Gross Domestic Product (GDP), say the report’s authors, who employ six pillars to derive the final index: market depth, access to foreign exchange, market transparency, tax and regulatory environments, development of pension funds, macroeconomic environment and transparency, and legal standards and enforceability.
The Executive Secretary of the United Nations Economic Commission for Africa (UNECA), which supported the report, stated that the Index “highlights the growing importance of finance aligned with climate, with more economies issuing green and sustainability-linked bonds, conducting climate stress tests, and launching platforms such as Africa’s first regulated voluntary carbon market.”
In one of the opening texts of the document, Claver Gatete added that “maintaining this momentum will require an unwavering commitment to transparency, legal security, and the expansion of domestic institutional investment” and concludes that “now is the time to scale capital market solutions that align with the continent’s priorities under Agenda 2063 and the Sustainable Development Goals.”
