Africa’s Financial Markets Index to be released Friday this week, indicates that the continent’s large and dynamic market presents opportunities for growth much as foreign investment prospects are hampered by underdeveloped financial markets and a lack of legal and regulatory clarity.
The report, supported by Barclays Africa Group and to be released in Washington DC, focuses on six pillars including market depth, access to foreign exchange, market transparency and regulation, capacity of local investors, underlying macro opportunities, and the enforceability of international financial agreements.
The Index shares results of a survey conducted with 40 key institutions operating throughout Africa, accumulating their views on market conditions and the regulatory framework of the African economies covered in the report.
‘Liquidity, regulation, foreign exchange restrictions and policy choices are the highest area of concern for investors when considering Africa. Whereas product diversity and the speed of transactions are among the highest-performing indicators, our survey highlights investor concern about the relevance of African markets on the global financial scene’ says Danae Kyriakopoulou, chief economist at Official Monetary and Financial Institutions Forum (OMFIF).
Using a variety of parameters, both qualitative and quantitative, the Africa Financial Markets Index records the openness of countries across the continent to foreign investment. The launch features a presentation of the report by Barclays Africa Group Limited and OMFIF, and key findings will be discussed, followed by a panel discussion.