Uganda retains 4th place in Absa Africa financial markets index
The index assesses countries based on six key pillars: market depth, access to foreign exchange, market transparency, local investor capacity, macroeconomic opportunity, and enforceability of financial agreements.
Uganda has maintained its fourth position in the Absa Africa Financial Markets Index, scoring 63 points, according to a report released by Absa Uganda.
The annual index, which evaluates financial market development in 23 African countries, highlights Uganda’s steady progress since 2017. The country has climbed from 9th place to 4th over the years, reflecting improvements in its financial market structures.
“Uganda’s rise from 9th place in 2017 to 4th today is a testament to our progress,” said David Wandera, Interim Managing Director of Absa Uganda. “While we celebrate these achievements, we recognize there is still work to be done.”
The index assesses countries based on six key pillars: market depth, access to foreign exchange, market transparency, local investor capacity, macroeconomic opportunity, and enforceability of financial agreements.
Uganda ranked second overall in macroeconomic stability and transparency, only behind Namibia. The country also scored highly in legal standards and contract enforceability, with a score of 85.
Despite these strengths, Uganda continues to face challenges, particularly in market liquidity and pension fund development. The country ranked 11th in market transparency, tax policies, and regulatory environment, scoring 76 in this category.
The report highlighted that most African countries have improved their scores, signaling an overall positive shift in the continent’s macroeconomic environment.
The Absa Africa Financial Markets Index serves as a benchmark for financial market development, providing a roadmap for countries to assess progress and identify areas for improvement.
