Kagame’s African Financial Hub – Rwanda Trails Uganda, Kenya and Tanzania in East African Financial Markets

By David Himbara

The 2021 Absa Africa Financial Markets Index is out, published by the Absa Group and Official Monetary and Financial Institutions Forum (OMFIF). Listed on the Johannesburg Stock Exchange (JSE), the Absa Group operates across Africa’s sub-regions with offices in the UK and the US. Based in London, UK, OMFIF focuses on global public investment with assets of US$39.5 trillion.

General Paul Kagame who aims to “transform Rwandainto an African financial hub” should pay close attention to Absa Index. Rwanda is ranked 4th in the East African Community (EAC) after Uganda, Kenya and Tanzania. Absa rankings are based on six pillars.

Pillar 1 looks at the market depth; Pillar 2 is access to foreign exchange; Pillar 3 is about market transparency, tax and regulatory environment; Pillar 4 looks at the capacity of local investors; Pillar 5 examines macroeconomic opportunity, while Pillar 6 is about the enforceability of standard master agreements.

Rwanda’s worst performance is Pillar 1 on the market depth and Pillar 4 on the capacity of local investors, ranked at 19 and 18, respectively, out of 23 countries. Stay tuned.