By BUUMBA CHIMBULU
THE revival of the Government bond Market and Environmental, Social, and Governance (ESG) programme inclusions has scaled Zambia to seventh place on the ABSA Africa Financial Market Index 2021 (AFMIndex21).
Financial market posture and performance for Zambia has been ranked two notches higher to seventh, an improvement from ninth place.
Some key developments in the Zambian market space include the introduction of a capital markets tribunal to address capital markets disputes.
Other developments are the rolling out of a 10 year capital markets master plan and fintech integrations through sandbox regulatory inclusions in the market.
The Bank of Zambia is yet to implement trading of government securities on apps and mobile money platforms a move that would include the retail market in bonds trading.
Trading was interesting and exciting in pandemic era as ways of work did have an impact with people working from home but we did adapt, ABSA Zambia Head of Global Markets, Stanley Tamele commented
on the trading environment in Covid-19 era.
“Zambia had its fair share of challenges on the fiscal side with less foreign exchange supply and excess demand which brought us closer to the central bank to enable trading to support the productive sectors.
“With an election on the horizon made it a mixed bag yet we have sailed through,” Mr Tamele said.
Ahead of Zambia on the index were South Africa 86, Mauritius 70, Nigeria 63, Ghana 62, Uganda 57 and Botswana 51.
It remains vivid that despite the Covid-19 pandemic, technology as an enabler remained key for markets through product innovation and digital inclusions through Fintech integrations ranging from sandboxes to upgrades in trading systems to efficient trading means and sustainable product offerings.
ABSA Africa Head of Macro and Fixed Income Research Jeff Gable explained that: “Broadly speaking, 13 of the 23 countries on the index were scored above the bare minimum in sustainability.”
Mr Gable highlighted the drivers of market transparency, tax and regulatory environment as basel, climate stress testing, accounting standards, sustainable market standards and incentives for green issuances.
