Nigeria is now ranked fifth most attractive financial market in Africa after South Africa, Botswana, Kenya and Mauritius. The country jumped one place from position six in 2017, according to Absa Africa Financial Markets Index 2018.
The report assesses progress and potential across six key areas: market depth; access to foreign exchange; market transparency, tax and regulatory environment; macroeconomic opportunity; and the legality and enforceability of standard financial markets master agreements.
“We believe the index is an important tool that can be used by policy-makers and market participants to guide their efforts in building robust financial markets that can drive inclusive growth,” says Ms Ramos.
Study Insights
Nigeria scored the second highest (66 out of 100 points) in “market depth” pillar while South Africa scored the highest (100 out of 100) in the report that was prepared by Absa Group and Official Monetary and Financial Institutions Forum (OMFIF).
Nigeria alongside South Africa also scored highest (96 out of 100) in Market transparency, tax and regulatory environment.
Nigeria is regarded among the top ten markets with strong legal and enforcement frameworks that support financial agreements to provide attractive opportunities to international investors.
According to the study, Nigeria’s score jumped considerably, due to improvements in administrative efficiency of the tax system, as well as the implementation of tax incentives and exemptions for capital markets activities.
Below are the top 20 Most Attractive Finance Market in Africa
Rank | Country | Score
1. South Africa 93
2. Botswana 65
3. Kenya 65
4. Mauritius 62
5. Nigeria (61)
6. Namibia 57
7. Ghana 55
8. Zambia 53
9. Morocco 50
10. Uganda 50
11. Rwanda 49
12. Seychelles 45
13. Ivory Coast 44
14. Senegal 44
15. Tanzania 43
16. Egypt 42
17. Cameroon 41
18. Mozambique 36
19. Angola 34
20. Ethiopia 26
Methodology
The Absa Africa Financial Markets Index, produced by OMFIF, provides a toolkit for countries seeking to strengthen their financial markets infrastructure.
It tracks progress on financial market developments annually across a range a countries and indicators.
The Index, produced by OMFIF and sponsored by Absa, focuses on six fundamental pillars:
1. Market depth
2. Access to foreign exchange
3. Market transparency, tax and regulatory environment
4. Capacity of local investors
5. Macroeconomic opportunity
6. Legality and enforceability of standard financial markets master agreements
