Absa presents the 6th edition of its report entitled "Absa Africa Financial Index", a study on the attractiveness of financial markets that covers 26 African economies and addresses how they can position themselves to attract higher levels of investment and boost economic growth. Special focus was given to our reality and how Mozambique can improve its ranking compared to the countries in the region.

This annual study, now in its sixth edition, has been developed in partnership with OMFIF (Official Monetary and Financial Institutions Forum), and presents an analysis of capital market performance focused on six strategic pillars that constitute the study's benchmark.

Presented by the Absa Group's Director of Market Research Studies for Africa, Jeff Gable, and the Head of the Markets Room at Absa Bank Mozambique, Sérgio Maciel, the event focused on aspects of the Mozambican economy, with a focus on analyzing the results achieved by Mozambique in the last year, and saw possible actions for the continuous improvement of the Mozambican Capital Market discussed and envisioned.

This edition analyzed 26 countries on the African continent, focusing on six fundamental pillars: market depth, access to foreign currency, market transparency, the tax and regulatory environment, the capacity of local investors, macroeconomic opportunity, and the legality and enforceability of global financial market agreements.

In addition to the financial aspect, one of the highlights of this meeting was the attention given to sustainability and ESG (Environmental, Social and Corporate Governance) initiatives under the theme of 'Market Transparency and Regulatory Environment' (Pillar 3), which confirms the paradigm shift that the world's financial markets and the region are putting into this increasingly relevant issue for economic growth and development.

In this 6th edition, Mozambique presented strong prospects for improvement due to the clearing of external debt, the macroeconomic growth prospects associated with gas production and exports, the transparency of macroeconomic decisions and the use of international financial standards (IRFS).

"It's important that we also position ourselves in the face of market volatility and, in my opinion, this will involve diversifying our products, not only in the capital market but also in the financial market as a whole, so that we can gradually reach higher levels in the ranking of the index countries and attract greater levels of local and foreign investment," said Patricia Darsam, Head of Corporate and Investment Banking at Absa Bank Mozambique.

"The report shows that we need to introduce new products and services, as well as new financial instruments. Gathering experiences from our partners, such as Cape Verde in green and blue bonds, Brazil and Angola, is fundamental. The country's economic and macroeconomic situation means that we face many challenges. The 39 points given to us by the index are not positive, they show that we haven't changed. We've been in a stable situation since last year, but there's still work to be done," says Salim Valá, PCA of the Mozambique Stock Exchange.

For his part, the Managing Director of Absa Bank Mozambique, Pedro Carvalho, said that the evolution of the financial markets doesn't happen "from one year to the next", adding that the most important thing is to see what opportunities there are for improvement, and who the players are that need to be involved in order for development to take place.

As a closing note, he revealed that the editions of the Absa Africa Financial Markets Index aim to encourage debate among all participants and stakeholders in the financial markets, as he considers it an important instrument for economic development.

"In the report, we highlighted the most important points of the Mozambican financial market, and what we really want to do is trigger this kind of debate, bring the players into a room and as well as analyzing the report, we can debate and identify ways in which the financial market can grow and be an important lever for the country's development," he concluded.

About Absa Bank Mozambique

Absa Bank Moçambique, SA. is part of Absa Group Limited, an African financial services group that aims to be the pride of the continent. Absa Group Ltd. is listed on the Johannesburg Stock Exchange in South Africa, one of the largest diversified financial services groups in Africa, with a presence in 12 countries across the continent and around 42,000 employees.

Absa has actively participated in the development of the financial system at all levels. It has been in the market for over 42 years, in partnership with a range of different public and private entities in all sectors of the economy.