Uganda ranks number one in East Africa, with 57 points in the Africa Financial Markets Index 2021.
Kenya follows with a score of 47, Tanzania came third with 45, followed by Rwanda with 43 and Ethiopia with 25.
The Africa Financial Markets Index evaluates financial market development in 23 countries and highlights economies with the most supportive environment for effective markets.
The index, produced by the Official Monetary and Financial Institutions Forum, is a non-lobbying network for best practices in the worldwide public-private sector exchanges.
In its fifth year, the index has introduced new indicators, the availability of sustainable finance products, such as green bonds and equities, contribute to market depth scores.
“Policies that encourage the issuance and trading of these products, as well as those that intend to mitigate against climate-related financial risks, form part of the score for regulatory environment,” part of the survey reads.
“Kenya and Morocco score highest in this indicator for having green or sustainable bonds, equities and mutual funds in their markets. Additionally, Kenya has issued ethical securities to fund socially responsible investment opportunities.”
The survey said that Ghana and Uganda entered the top five for the first time, earning progress points. South Africa, Mauritius and Nigeria maintain their lead in the index, though with scores slipping in 2021 for all three.
The average scores declined to 46.4 from 50.8 last year, with only seven countries earning above 50. According to the survey, Malawi, Egypt, and Uganda are among the countries that improved their ranking the most.
Out of 23 countries in the index, 19 scored lower than last year.