In October, Concerto Financial Solutions (CFS) launched the first-of-its-kind CFS Pan-African Bond Index (CABI). It has a market capitalization of more than $200 billion and is intended to help increase liquidity and transparency in the local African currency bond markets.
The indexes are calculated daily using closing prices from major financial institutions and are available in local currency, U.S. dollar, euro and rand.
The CABI currently includes sovereign bonds from Botswana, Egypt, Ghana, Kenya, Mauritius, Morocco, Namibia, Nigeria, South Africa, Tunisia, Uganda and Zambia, with a further eight countries under consideration for future inclusion. Northern, Southern, Eastern and Western African regional indexes are also derived from the universe of domestic government bonds.
Country selection is based on a methodology that was originally created by CFS for the African Development Bank’s African Financial Markets Initiative to improve financial market transparency.