Barclays Bank Seychelles launches Africa Financial Market Index Research |14 April 2018

Expanding and deepening financial markets across Africa is a central condition for the next stage of the continent’s development.

The statement is from the Barclays Bank Africa Group in its Official Monetary and Financial Institution Forum’s (OMFIF) Africa Financial Markets index report.

The report, launched on Thursday at the Eden Bleu Hotel, focusses on six fundamental 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.

Using a variety of parameters, both qualitative and quantitative, the Barclays Africa Group Financial Markets Index recorded the openness of countries across the continent to foreign investment.

In her keynote address, the Central Bank governor, Caroline Abel, pointed out that the development of financial markets is of utmost importance for the development of the economy.

“The index that has been launched provides us with a good analysis of the state of affairs of the financial markets in Africa. Most importantly for Seychelles, it provides us with a marker of where we are and the areas which we need to focus on in order to increase the level and efficiency of our financial market,” she said.

Ms Abel added that the Seychelles economy needs to mature and strive for continued improvement in our financial market.

“Out of the 17 African countries that feature in this index, Seychelles has scored 22 out of a possible 100 across the pillars that were assessed, with an overall ranking of 16. The indication of the way forward is clear, as per analysis, we need to improve on the depth and breadth of our financial market, increase our access to foreign exchange and bring our regulatory environment on par with international forms,” she said.

The market surveyed to compile the extensive index comprises Botswana, Egypt, Ethiopia, Ghana, Ivory Coast, Kenya, Mauritius, Morroco, Mozambique, Namibia, Nigeria, Rwanda, Seychelles, South Africa, Tanzania, Uganda and Zambia.

The managing director of Barclays Bank Seychelles Johan Van Schalkwyk, stated that Barclays Bank Seychelles needs to expand its financial market.

“As a bank, we are deeply convinced that expanding and depending on financial markets across Africa is a necessity for the next stage of our continent’s development,” he said.

He explained that a vibrant, well-functioning, sound, efficient and stable financial system is a catalyst for sustainable economic growth and development, and therefore it is reasonable to deduce that developing financial markets infrastructure and attracting private capital from across Africa and beyond are key elements in the continent’s economic growth agenda as well as Seychelles economic development.

Mr Van Schalkwyk added that Seychelles’ economy can flourish and its capital markets can leverage the findings and recommendations of the first Africa Financial Markets Index report to focus our collective efforts on making Seychelles a country where emerging business are able to access the investment required to spur economic growth.

Among the above mentioned countries, Seychelles scored better than Ghana, Zambia and Mozambique on investors capacity and macroeconomic opportunity, but has among the lowest scores on access to foreign exchange, market depth and market transparency. These need to be addressed to ensure that local capital markets are better placed to proactively support economic growth.

The launch ceremony featured a presentation of the report by Barclays Africa Group Limited and OMFIF.

Key findings were discussed, followed by a panel discussion and a moderated question and answer session which included Governor Abel; Mr Schalkwyk; the head of markets, Roa Corporate and Investment Banking George Asante; the Barclays Africa Group chief economist Jeff Gable; the chairman of Barclays Bank Seychelles Limited Board Jean Weeling-Lee; the Minister for Finance, Trade and Economic Planning Peter Larose; the chief executive of Trop-X Bobby Brantley and the economic advisor to the President of the Republic of Seychelles Bertrand Belle.