The African Development Bank (AfDB) has expanded its African Bond Index by adding two more countries - Zambia and Ghana.

AfDB through the African Financial Markets Initiative (AFMI) launched its AfDB/AFMISM Bloomberg African Bond Index (ABABI) in February 2015. 

Calculated by Bloomberg Indices, the composite index also comprises the Bloomberg South Africa, Egypt, Nigeria, Kenya, Botswana and Namibia local currency sovereign indices.

Stefan Nalletamby, Director of the AfDB’s Financial Sector Development Department, said: ”As more African countries are increasingly looking to domestic capital markets to source much-needed financing for economic development, we are delighted to welcome Zambia and Ghana to the index and expect to include more countries to it as soon as reliable pricing information is made available.”

The expanded index will now include the eight most liquid sovereign bond markets in Africa. 

The AFMI works to deepen the continent’s local currency bond markets and also strives to create an environment where African countries can access financing at variable terms. 

By providing transparent and credible benchmark indices, the AFMISM Bloomberg African Bond Index provides investors with a tool with which to measure and track the performance of Africa’s bond markets.

AfDB has approved in December 2016 the creation of the first African multi-jurisdictional Fixed Income Enhanced Exchange Traded Fund (ETF). 

The African Domestic Bond Fund (ADBF), which will track the performance of ABABI, is expected to be launched in September this year.