ABSA positions Kenya at third in Africa as the most progressive Financial Market

ABSA managing director, Jeremy Awori. ABSA has ranked Kenya as the most progressive financial markets in the continent. [Photo: Courtesy]

ABSA’s formerly Barclays Bank, Africa financial markets index has ranked Kenya as the third most progressive financial markets in the continent in terms of ease of access to foreign trading in 2018.

The ranking has been reached at due to ease of access to foreign exchange well as implementation of proper foreign trading policies in terms of capital controlling which has boosted its performance, as opposed to the 2017 ratings.

Barclays Bank of Kenya managing director, Jeremy Awori said that several counties in the country were adopting proper policies to ensure there is an increase in the capital generated. He confirmed that South Africa, Ghana and Kenya were lessening barriers for firms to enter and to start conducting their operations which will in turn expand the number of listed companies.

“Deep and liquid capital markets are instrumental to supporting economic growth, creating domestic investment opportunities and attracting foreign and local capital. A vibrant, well-functioning, sound efficient and stable financial system is a catalyst for broad-based sustainable economic growth and development,” said the managing director.

ABSA Group Head of Markets George Asante believed that improvements in infrastructure and regulatory frameworks could help boost a country’s performance in the future in the middle of the index.

He said, “the index provides a toolkit for countries seeking to strengthen their financial markets infrastructure and tracks progress on financial market developments annually across a number of countries and indicators.”

Earlier on, Asante said, ‘’African financial markets have traditionally suffered from a lack of depth relative to other regions. This has been a key factor holding back the ability of firms and investors within and beyond the continent to exploit expansion opportunities.”

The Kenya financial market last index had placed Kenya at fifth after South Africa, Mauritius, Botswana and Namibia with a 59 percent score in the Financial Market Index.

The index grades countries on six principles of financial markets specifically; depth and breadth of financial instruments, market transparency and regulation and access to foreign exchange.

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