Kenya among ten AFMI countries enjoying Ksh.193.6 billion in IMF funding

Kenya is among ten Africa Financial Market Index (AFMI) countries that have so far received Ksh.193.6 billion in funding in 2022 for the economic shocks buffer occasioned by the ongoing coronavirus pandemic.

The multibillion financing kitty emanated from the international Monetary Fund (IMF) which has played a key factor in helping a number of African countries servive the harsh economic wave.

The wave has seen foreign exchange reserves adequacy generally weaken relative to the previous year, with the ongoing Russia’s invasion of Ukraine doubling impact on the reserves.

The war has entered in what could become a protracted period of feeble growth and elevated inflation.

Besides, Kenya other countries which fall under the AFMI include among others – Uganda, Namibia,  South Africa, Mauritius and Nigeria.

Africa looks an attractive investment destination based on capital market structures that actively guide adequate risk pricing. There are many areas on which to build. Unstinting efforts by the private sector – together with the International Monetary Fund, multilateral development institutions, and our network of partner institutions around Africa – are required to extend these positive changes,” said  David Marsh, Chairman of the Official Monetary and Financial Institutions Forum (OMFIF),

Launched by the African Development Bank (AfDB) Group in 2008,  AFMI is designed to further develop local currency bond markets on the continent. 

It acts as a catalyst for the development and stability of financial markets as well as for regional financial integration and improving the availability and transparency of African fixed income data.

The two objectives are achieved through two complementary pillars that include the  African Financial Markets Database(link is external) – a comprehensive database that provides updated information on African local currency bond markets;

The second pillar is the African Domestic Bond Fund – an index tracker fund that will invest in local currency denominated sovereign bonds.

Several countries are using digital technologies to improve market access, information and inclusion, while initiatives to integrate financial markets across Africa are gathering momentum.

Lawrence Baraza

Lawrence Baraza is a prolific writer with competencies in Digital Media, Print, and Broadcast. Baraza is also a Communication Practitioner currently spearheading Digital content on Metropol TV's Digital Desk.

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