TANZANIA MAKES SIGNIFICANT PROGRESS IN THE ABSA AFRICA FINANCIAL MARKETS INDEX 2024

Governor of the Bank of Tanzania, Mr. Emmanuel Tutuba (center), Managing Director of Absa Bank Tanzania, Mr. Obedi Laiser (left), and Director of Financial Markets at Absa Tanzania, Ms. Irene Rwegalulira, showcasing the book containing the Absa Africa Financial Markets Index 2024 report, shortly after its launch in Dar es Salaam today.

Governor of the Bank of Tanzania, Mr. Emmanuel Tutuba (third left), cuts a ribbon during launch of the Absa Africa Financial Markets Index 2024 report in Dar es Salaam today. From the left are Absa Managing Director Global Markets, Africa Regional Operations - Mr. Anthony Kirui; Absa Tanzania Director of Financial Markets - Ms. Irene Rwegalulira; Managing Director of Absa Bank Tanzania - Mr. Obedi Laiser; Chief Economist and Head of FIC Research - Mr. Jeff Gable; and a Board Member of the Bank - Mr. Richard Magongo.

Dar es Salaam, 30 January 2025 – Absa Bank Tanzania today hosted an exclusive breakfast event to launch the Absa Africa Financial Markets Index (AFMI) 2024, an influential annual report that evaluates the development and performance of financial markets across Africa. The event, held in Dar es Salaam, brought together key stakeholders, policymakers, industry leaders, and financial experts for an interactive session to explore the report’s insights and implications for Tanzania’s financial markets.

The Guest of Honor, Hon. Emmanuel Tutuba, Governor of the Bank of Tanzania, graced the occasion alongside esteemed panelists and keynote speakers, including: Mr. Peter Situmbeko Nalitolela - Chief Executive Officer, Dar es Salaam Stock Exchange; Mr. Charles Philip Shirima - Manager Public Relations, Capital Markets and Securities Authority (CMSA); Mr. Lameck M. Kakulu - Manager of Foreign Markets, Directorate of Financial Markets; Mr. Anthony Kirui - Managing Director Global Markets, Absa Regional Operations; and Mr. Jeff Gable - Absa Bank’s chief economist and head of FIC Research, Absa Regional Office.

Senior representatives from Absa Group, including Mr. Anthony Kirui, Managing Director Global Markets, Africa Regional Operations, and Mr. Jeff Gable, Chief Economist and Head of FIC Research, delivered keynote addresses. They shared insights into emerging trends reshaping Africa’s financial landscape, including advancements in ESG frameworks, digital technologies, and efforts to strengthen legal and regulatory regimes.

Tanzania’s Performance in AFMI 2024

This year’s AFMI report highlights significant progress for Tanzania. The country’s overall score improved from 50 to 52, ranking 12th among 29 African nations evaluated. Key achievements include:

• Pillar 2: Access to Foreign Exchange – A notable improvement from 53 to 60, attributed to the Bank of Tanzania’s publication of the Interbank Foreign Exchange Market code of conduct, aligning with 52 out of 55 FX Global Code principles.

• Pillar 5: Macroeconomic Environment and Transparency – The score increased from 80 to 85, driven by greater transparency, including public access to the monetary policy meeting schedule, low inflation, and a reduced non-performing loan ratio.

• Pillar 1: Market Depth – Gains were linked to new corporate bond issuances totaling $300 million and the introduction of diverse financial instruments, including ESG-linked and Islamic financial products.

However, the report identifies areas for improvement:

• Pillar 4: Pension Fund Development – Despite a slight score increase, Tanzania’s pension fund assets per capita remain significantly below the index average, signaling the need for enhanced local investor capacity.

• Pillar 6: Legal Standards and Enforceability – Efforts are underway to address gaps in close-out netting legislation and regulatory frameworks to boost investor confidence.

Remarks by Key Speakers

Hon. Emmanuel Tutuba commended Absa Group for its commitment to promoting transparency and efficiency in African financial markets through the AFMI. “The progress highlighted in this report is a testament to the collaborative efforts of the government, the Bank of Tanzania, and market participants in strengthening our financial markets,” he stated.

Mr. Obedi Laiser, Managing Director of Absa Bank Tanzania, emphasized the importance of the AFMI in fostering financial market development across the continent. “Expanding and deepening financial markets in Africa is crucial for the continent’s next stage of development. We are proud to partner with OMFIF in producing this report, which serves as a roadmap for policymakers and investors alike,” he noted.

Mr. Richard Magongo, Board Director - Chairman Audit and Risk Committee, on behalf of Mr. Paul Makanza, Chairman of the Board of Directors, Absa Bank Tanzania, expressed gratitude to all attendees and highlighted Tanzania’s improvements in the index. “While progress has been made, there is still work to be done in areas such as pension fund development and legal frameworks. Absa remains committed to collaborating with all stakeholders to ensure continued development of Tanzania’s financial markets,” he remarked.

About the Absa Africa Financial Markets Index

Now in its eighth year, the Absa Africa Financial Markets Index evaluates the financial development of African countries based on six key pillars: market depth, access to foreign exchange, market transparency and regulation, pension fund development, macroeconomic environment, and enforceability of financial agreements. Produced in partnership with OMFIF, the index offers invaluable insights for investors and policymakers, highlighting opportunities and areas for improvement across the continent.

For more information, please contact:

Beda Biswalo
Marketing & Communications Manager
Absa Bank Tanzania Limited
+255 758712812
Beda.Biswalo@absa.africa

Aron Luhanga
Head, Marketing & Corporate Relations
Absa Bank Tanzania Limited
+255 768 221 717
aron.luhanga@absa.africa

About Absa Bank Tanzania

Absa Bank Tanzania Limited is one of Tanzania’s leading financial institutions offering an integrated set of products and services across Corporate and Investment Banking, Business Banking with solutions for SMEs, and Retail Banking. Backed by its 21-year legacy in Tanzania and inspired by the people it serves, Absa is committed to finding local solutions to uniquely local challenges and everything we do is focused on bringing possibility to life.

Absa Bank Tanzania is part of Absa Group Limited, one of Africa’s largest diversified financial services groups. Absa Group employees approximately 40, 000 professionals operating in South Africa, Zambia, Botswana, Mozambique, Seychelles, Mauritius, Kenya, Tanzania, Uganda, Ghana. The Group has representative offices in Nigeria, Namibia, London and New York, as well as insurance operations in Botswana, Kenya, Mozambique, South Africa, Tanzania and Zambia. Absa is a truly African brand, inspired by the people we serve and determined to be the financial services Group Africa can be proud of.

For more about Absa Bank Tanzania, its products and services, visit www.absa.co.tz