World Economic Forum Financial Development Index: Africa can do better ~ Chofor Che

World Economic Forum Financial Development Index: Africa can do better ~ Chofor Che

 

The ranking of African states in the World Economic Forum’s Financial Development index of the Financial Development Report for 2012

The Financial Development Report measures and examines the factors allowing the development of financial systems in a couple of economies around the world. It aims to furnish a comprehensive modus operandi for states to benchmark various aspects of their financial systems and put in place priorities for economic improvement. It is published annually so that states can benchmark themselves and track their progress over time.Since 2008, the year that the Financial Development Report wasfirst launched, financial systems around the world have been hit with a couple of devastating crises. From crippling unemployment, serious housing bubbles, unsustainable debt levels and economic stagnation, few states have been spared. Even emerging economies, which showed relative strength during this period, have been unable to decouple successfully from Western markets.

TheReport presents the rankings of the Financial Development Index, developed by the World Economic Forum in partnership with business leaders, public figures, the academic community, and multilateral organizations. It puts together an enormous amount of data to create an assessment of the various aspects of complex financial systems, including the business environment, the institutional environment, capital markets, financial stability, banks, and overall capital availability and access.

The Report appeals to a large audience such as policy-makers, business leaders, academics and different organizations of civil society. It aims to provide policy-makers with a balanced perspective on which aspects of their country’s financial system are most important and with the ability to empirically calibrate this view relative to other countries.

In the 2012Report, Hong Kong is ranked first, with the United States of America coming in second place. Concerning African states, South Africa is ranked 28th, as compared to being ranked 29th in 2011. The next African state on the list is Egypt, which is ranked 53rd, as compared to being ranked 49th in 2011. Egypt is followed by Kenya, ranked 54th, Ghana ranked 56th Tanzania ranked 60th and Nigeria 61st.  It is rather unfortunate that central African states like Cameroon, the Democratic Republic of Congo, Equatorial Guinea, Gabon and Congo Brazzaville, do not feature in the top 62 of this ranking.

Judging from Africa’s performance according to the rankings of the 2012 Report, it is obvious that there are still concerns with the business environment, the institutional environment, capital markets, financial stability, banks, and overall capital availability and access, in African states.  This in effect means that African states need to address issues of corruption as well as poor financial management plaguing their economic and financial improvement. The key lies in the central governments of African states and most especially central African states to create a friendly business environment in their states, as well as an institutional environment, for capital markets to flourish. 

 

 

South Africa leads the way…but Africa needs to do more

Comments

comments

You might also like…

Africa Free Trade

African Free Trade Area: First Things First – Chofor Che

 In late May 2015, How Africa published an article titled ‘Africa About to Launch a Free Trade Area Bigger than the EU or NAFTA.’ According to How Africa, this laudable trade area is purported to be greater in population than the European Union (EU). How Africa adds that the big Free Trade Area (FTA) aims […]

malawi_market_629x419

Introducing, The Center for Free Market Enterprise: A New Dawn of Liberty In Malawi

 Malawi is a closed economy. The Malawian government dictates prices for goods and services, the value of the currency, and consistently implements subsidies for fertilizer and maize. As a result, many citizens are passive in their efforts to create enjoyable living conditions, waiting for the one true and honest politician to appear and to solve […]

Omobola-Johnson

Nigeria’s Advancing Communications Technology And Lessons For Government – Japheth J, Omojuwa

 People talk about how this government has lost the media war; they often do not tell us why this is the case. It has always been the job of the media to be critical of the government of the day by default. What the government does in reaction often determines whether the criticisms are sustained […]

Leave a Reply

Your email address will not be published. Required fields are marked *