Uganda’s financial market ranked 10th in Africa

Kampala, Uganda | ISAAC KHISA | Uganda’s financial market has been ranked 10th with a score of 47%, a head of Tanzania in the East African Community in the inaugural Barclays Africa Group Financial Markets Index 2017.

The survey that was conducted in 17 African countries that account for 60% of the continents’ GDP, shows that Tanzania ranked 11th with a score of 44%. Rwanda and Kenya, on the other hand, ranked 8th and 5th with a score of 48% and 59%, respectively.

The index by Barclays Africa Group and the London-based Official Monetary and Financial Institutions Forum (OMFIF), measures six pillars of financial markets namely; depth and breadth of financial instruments, access to foreign exchange, and market transparency and regulation. Other measures are macroeconomic opportunity, legality and enforceability.

It intends to drive conversations among policy-makers, investors, market participants and other partners to address gaps and track progress in Africa’s financial markets.

South Africa emerged first in the survey with a score of 92% followed up with Mauritius (66) and Botswana (65).

George Asante, the managing director and head of markets at Barclays Africa Group, said Uganda’s ranking is attributed to good foreign exchange access even as liquidity in its domestic foreign exchange market remains low.

He, however, said the country’s stock exchange now needs to promote greater issuance of corporate bonds to be listed on its exchange as well as focus on financial literacy, training for market practitioners, liberalisation of the pension sector, public awareness campaigns and strengthening the local and foreign investor base to grow the financial market.

Louis Kasekende, the deputy governor, Bank of Uganda, said the new index will provide them with much needed data to evaluate performance of the financial sector and attract more investment.