Category Archives: Namibia

Absa AFM Index shows African countries improve in investor readiness

The 2019 Africa Financial Markets Index report that was released in October, found that several countries had closed gaps to perennial leader South Africa, improving on several measures such as financial transparency, local investor capacity, legal protection and macroeconomic opportunity.

Showing just how much African countries have made progress, while only six had scored better than 50 (out of the maximum 100) in the first index in 2017, last year ten countries did that, and in 2019, thirteen countries scored better than 50 points.

The ranking of countries in the Absa 2019 Africa Financial Markets Index and some of the market/investor activities highlighted in the report include:

South Africa (and also number 1 in the last index): Is the top country in 5 pillars after it regained the lead from Kenya on the foreign exchange one. The JSE also launched a Nasdaq clearing platform.

2 (4) Mauritius: Has diversified its economy from sugar and textiles to tourism and financial services. It leads the continent in pension assets under management of $4,331 per capita. It has also established a derivatives trading platform.

3 (3)Kenya: More detail on Kenya’s ranking and investor initiatives here.

4 (6) Namibia: Bank Windhoek issued a green bond in the year. One concern is that the country lacks sufficient financial markets experts.

5 (2) Botswana: The country’s exchange has large market capitalization, but this is mostly due to dual-listed mining companies that have low trading volumes. They also formed a financial stability council to coordinate different regulators and plan to launch a mobile phone bond product like Kenya’s M-Akiba.

6 (5) Nigeria: Showed big improvement as they have liberalized their exchange rate and built up reserves. Pension funds were freed up to invest in infrastructure, bond, and Sukuk funds.

7 (15) Tanzania: Created a tax ombudsman and also repealed an amendment that had made it illegal to publish statistics that were not approved by the Government.

8 (8) Zambia: Improved budget reporting. But reserves dropped due to high interest payments on external debt as mining production has declined.

9 (11) Rwanda: Share of exports grew, and an agreement was reached with the IMF to accelerate urbanization and financial markets.

10 (10) Uganda: Market trading activity dropped from $25 million to  $11 million and one of the largest stockbrokers opted not to renew their operating license.

Others were:

11 (16) Egypt: Topped the pillar of macro-economic opportunity due to export gains and declines in non-performing loans. Moody’s also upgraded their banking system ratings.

12 (9) Morocco: Now publishes monetary policy announcements and data releases. Has an active financial market but limited availability of financial products. It plans to launch an agricultural commodities exchange.

13 (7) Ghana: Is seeking to cap foreign holdings of government debt. The Bank of Ghana merged small banks and revoked licenses of others that did not meet minimum capital requirements.

16 (13) Ivory Coast: Enabled more-accessible budget reporting and plans to launch an agricultural commodities exchange for 2020.

20 (20) Ethiopia: Announced plans to launch a stock exchange for 2020, with aims to have significant privatization events including the listing of telecommunication companies. Local banks are also adopting international financial reporting standards. But the requirement that their pension funds can only invest in government securities is considered an impediment.

Also on the index are Seychelles (ranked 14), Mozambique (15), Angola (17), Senegal (18) and Cameroon (19). The 2019 AFM Index report was produced by the Absa Bank Group and the Official Monetary and Financial Institutions Forum (OMFIF) and it can be downloaded here.

Namibia President wins Mo Ibrahim Prize

President Hifikepunye Pohamba was today announced as the winner of the 2014 Ibrahim Prize for Achievement in African Leadership. The award

Earlier, there was some speculation or expectation, with the announcement being made in Nairobi, that Kenya’s former president Mwai Kibaki might be this year’s winner. The prize panel comprising Salim Ahmed Salim, Martti Ahtisaari  Aïcha Bah Diallo, Mohamed ElBaradei, and Graça Machel addressed that in a  Q&A session after the announcement was made by Salim

He said President Pohamba made a mark in terms of reconciliation, cohesion, and respect for the constitution. He had offered sound leadership while remaining humble. His achievements were seen in gender equality (48% of parliamentarians are women) a focus on health (80% of HIV cases receive therapy and transmission rates are falling) and education, tackling poverty (social safety nets and disability grants) while grappling with challenges like the widening inequality.

  • Questioned on the criteria, Baradei said the awards are not given in a vacuum – and this is measured by improvements in governance and leadership. President have to do the right things amid challenges, and create a cohesive society in which citizens can work together. Aicha mentioned his acceptance of political parties  and consultation with opposition leaders.  Graca said the achievements in his country were done in a very short period of time.
  • Are all winners from the Southern Africa region? Machel said that was not true and they analyze every case regardless of region. She said that while three winners are from Southern Africa, the SADC regional also had some bad (young) countries
  • Does it create encouragement? Has the prize had an impact in Africa and is it work all that money? Yes they said. Salim said they would rather go a few years without an award, than give an award for no reason. There has been no winner for three years, and that may happen again in future. Ultimately, the answers lie in numbers derived from the Foundation’s Index of African Governance.
  • The MC read out a tweet from a Kenyan newspaper that Kibaki lost to the prize to Pohamba’ – and Salim said that it was an assumption that they had considered Kibaki for the prize.Mo Ibrahim at the 2014 Prize announcement
  • Chris Kirubi compared giving a prize to wealthy retired presidents to putting water back into the river. Mo Ibrahim stood and disagreed with the that generalization saying it was detrimental  to make. He said this was due to Africans relying on foreign media  and only knowing a few continental leaders like Mandela and then the infamous ones – and asked how many in the room knew the past winners like presidents’ Festus Mogae  or Pedro Rodrigues Pires or Pohamba (before today)? He appealed to the media to report properly on Africa by knowing the 54 presidents, some of who were wealthy, but others who lived humble lives, and find more heroes, beyond Mandela. He said Pires, a former liberation leader who became president, called a taxi and went to live with his mother after he lost the election. He also cited Botswana’s former President Masire who once traveled to  a meeting in Addis where he was overlooked by VIP protocol as they didn’t know he was traveling in economy class (to set an example).
  • ElBaradei said  the fact they don’t have winner every year is also a message. They would like to see 2 or 3 qualified ex-presidents every year but Africa is still facing challenges of transiting to democracy and good governance.
  • The award, which is a $5 million prize paid over 10 years, followed by $200,000 annually for life thereafter, remains open to any president who has left office in the previous three years. It affords winners a chance to have dignified years in retirement and invest or fund activities they believe in.