Ghana and Zambia have become the newest members of the African Financial Markets Initiative (AFMI), under the auspices of the African Development Bank (AfDB) and Bloomberg African Bond Index.

The AfDB/AFMISM Bloomberg African Bond Index (ABABI) was however launched in February 2015.

Calculated by Bloomberg Indices, the composite index is currently comprised Bloomberg South Africa, Egypt, Nigeria, Kenya, Botswana and Namibia local currency sovereign indices and have been joined from April, this year, by Ghana and Zambia.

"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,” says Stefan Nalletamby, Director of the AfDB’s Financial Sector Development Department.

The expanded index will now include the eight most liquid sovereign bond markets in Africa, according to a release from AfDB.

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.

The release said 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 on the 7th of December 2016 the creation of the first African multijurisdictional Fixed Income Enhanced Exchange Traded Fund (ETF); namely the African Domestic Bond Fund (ADBF) which will indeed track the performance of ABABI.

The ADBF is expected to be launched in September this year.