Uganda Retains Fourth Spot in Absa Africa Financial Markets Index

Uganda has maintained its fourth position in the Absa Financial Markets Index (2024), scoring 63 points. The country was behind South Africa, Mauritius, and Nigeria, which occupied the top three positions, respectively.

The Absa Africa Financial Markets Index provides a standardized measure of financial market accessibility, transparency, and openness across 29 African countries. 

The index evaluates countries’ performance across over 40 indicators, organized into six pillars: market depth, access to foreign exchange, market transparency, tax and regulatory environment, pension fund development, macroeconomic environment, and transparency and legal standards and enforceability.

Uganda excelled in its macroeconomic environment and transparency, ranking second only to Namibia. The country also performed well in terms of legal standards and enforceability, scoring 85 and ranking fifth below Mauritius, South Africa, Ghana, and Nigeria.

The report noted, “Tradeclear was launched in Uganda in June 2024 allowing repurchase transactions under local Global Master Repurchase Agreement, and various derivative products under the International Swaps and Derivatives Association.”

However, challenges persist, including low market liquidity and pension fund development, which scored 15. Despite these challenges, Uganda outperformed its East African peers, including Rwanda, Kenya, and Tanzania.

David A Wandera, Interim Managing Director of Absa Bank Uganda, highlighted the index’s findings, stating that 82% of participating countries improved their scores, the highest proportion in seven years. Wandera noted Uganda’s progress, saying, “This year, Uganda’s score increased to 63, driven by strong macroeconomic performance and transparency.”

Wandera emphasized the need for ongoing collaboration between government, regulators, and the private sector to further develop Uganda’s financial markets.