Created: February 2008
Financial contributors: AfDB, CIDA and FAPA
Background and Objectives
Deep and liquid bond markets are essential for a country to enter a sustained phase of development, driven by market-determined capital allocation. However, bond markets in Africa remain largely underdeveloped, with corporate bond markets non-existent or in their infancy. Launched by the African Development Bank (AfDB) Group in 2008, the African Financial Markets Initiative (AFMI) is designed to further develop local currency bond markets on the continent.
AFMI aims at:
- Acting as a catalyst for the development and stability of financial markets as well as for regional financial integration
- Improving the availability and transparency of African fixed income data
To achieve these objectives, AFMI has two complementary pillars:
Recognising the existing challenges to bond market development on the continent, the AFMI will engage with stakeholders: 1/ to create multi-disciplinary working groups, and 2/ to work in close cooperation and coordination with other development partners. The working groups will serve as platforms for policy dialogue, knowledge sharing, and will identify synergies between bond market development initiatives, including project funding and stakeholder Technical Assistance needs.
Access to accurate information and data on African debt markets remains one of the major challenges faced by markets participants and development partners. For that purpose, AFMI has developed a website to provide awareness and bring visibility to local currency bond markets.
The website is accessible through: www.africanbondmarkets.org.