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Tanzania 10th in Africa for Financial Development, Report Indicates

Absa Tanzania Financial Markets Index 2023

The Absa Group in association with OMFIF recently released its Absa Africa Financial Markets Index 2023 Report that scores 28 African countries’ financial development based on measures of market accessibility, openness, and transparency. 

The aim of the report is to show how countries can reduce barriers to investment and boost sustainable growth.

Countries are scored on a scale of 10-100 based on six pillars comprised of over 40 indicators.

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The pillars are: market depth; access to foreign exchange; market transparency, tax and regulatory environment; capacity of local investors; macroeconomic environment and transparency; and legal standards and enforceability.

The survey was conducted between June and September 2023, covering more than 50 organizations operating throughout Africa.

Participants included central banks, securities exchanges, regulators, international organizations, banking associations, and accounting firms.

The report reveals continued progress in developing financial markets across Africa in the past year.

In this 2023 edition, Tanzania improved its rating from 12th to 10th out of 28th countries but remains in third position in East Africa after Uganda (4th) and Kenya (7th).

In particular, new assets are becoming available in Tanzania on domestic exchanges.

The KCB Bank launched its Fursa Sukuk, the first Sharia-compliant sukuk bond listed on the Dar es Salaam Stock Exchange (DSE).

Furthermore, CRBD Bank listed at the DSE the Kijani bond–the largest green bond in sub-Saharan Africa.

During the launch of the report in Dar es Salaam on November 15, 2023, Dr. Yamungu Kayandabila, the Deputy Governor of the Bank of Tanzania – Economic and Financial Policies, commended Absa Bank for its commitment to promoting transparency and efficiency in financial markets.

Dr. Kayandabila expressed satisfaction with Tanzania’s progress in enhancing its financial market ecosystem, emphasizing it as crucial for building investor confidence, attracting foreign investment, and fostering economic growth.

He attributed this advancement to Tanzania’s dedication to financial inclusion, regulatory reforms, infrastructure development, and overall market stability.

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