Mauritius and Morocco have joined eight African countries that are part of the Bloomberg African Bond Index (ABABI) to provide investors with a tool to measure and track Africa’s local bond markets’ performance.
The set of indices are administered by the African Development Bank (AfDB) and calculated by the global index provider, Bloomberg.
Indices are usually used as a benchmark against which a financial instrument’s performance can be tracked, making it possible to make comparisons within a region, industry sector, or other asset class.
It is hoped that the ABABI will help drive investment into bond markets in Mauritius and Morocco, which are two of Africa’s better-rated issuers.
According to Moody’s, Morocco, Mauritius, Senegal & South Africa are the only African countries which are above the B rating of “speculative” and “subject to high credit risk”.
The ABABI was first introduced in 2014 in partnership with the African Financial Markets Initiative (AFMI) to deepen debt markets across the continent.