The Cross-Border Initiative in Eastern and Southern Africa

Table 13. CBI Countries: Monetary Operations and Financial Market Developments
(As of end-December 1998)

 

              Monetary Instruments                

            Financial Market Developments              

  Direct 4/ Indirect 1/ Interest Rate Determination Primary Secondary Inter-Bank Stock Exchange

Burundi

n.a

omo/r.r/l.r/s.f

n.a

n.a

n.a

n.a

n.a

Comoros

Yes

None

Controlled

No

No

No

No

Kenya

No

omo/r.r/l.r/s.f

No controls

Active

Active

Yes

Active

Madagascar

No

omo/r.r./s.f.

No controls

Active

Active 2/

Yes 5/

No

Malawi

No

omo/r.r./s.f/r.f

No controls

Active

Active

Yes

Yes

Mauritius

No

omo/r.r./l.r/s.f

No controls

Active

Active 2/

Yes

Yes

Namibia 7/

No

omo/r.r/s.f

Market
  determined 6/

Active

No

Yes

Active

Rwanda

No

r.r/s.f/r.f

No controls

No

No

Yes 3/

No

Seychelles

No

rr/l.r

Controlled 8/

Active

No

No

No

Swaziland 7/

No

omo/rr/l.r/s.f

Market
  determined 6/

Active

Active 2/

Yes 3/

Yes

Tanzania

No

omo/rr/l.r/s.f

No controls

Active

No

Yes 3/

Yes 3/

Uganda

No

omo/rr/l.r/s.f

No controls

Active

Active 3/

Yes 3/

Yes 3/

Zambia

No

omo/rr/l.r/s.f

No controls

Active

Active

Yes

Active

Zimbabwe

No

omo/rr/l.r/s.f

No controls

Active

Active

Yes

Active


Source: IMF Staff Reports; and data provided by the authorities.

1/ omo = Open Market operations
     rr  = Reserve requirements
     l.r = Liquidity requirement
     s.f = Standing discount facilities
     r.f = Refinancing facilities
2/ Not well developed.
3/ Limited.
4/ Credit ceilings and selective credit controls.
5/ Exists but not active.
6/ Strongly influenced by South Africa.
7/ Member of CMA.
8/ Maximun and minimum interest rates.

Table 14. CBI Countries: Structure of The Banking System
(As of end-December 1998)

     Supervisory Framework                    Infrastructure 2/                                Prudential Regulations                

 

Number of Banks 1/

Banking Law Year

Revi- sions Planned

Central Bank Autonomy

Complete Financial Sector Reform Program

Develop Foreign Trade Instru- ments

Payment System Efficiency

Capital Adequacy 5/

Borro- wing Limits 4/

Reserve require- ment

Mini- mum Liquid asset require- ment

Foreign exchange exposure limits


1. Burundi

N/A

N/A
(-)

N/A

N/A

-

-

N/A

N/A

N/A

N/A

N/A

No

2. Comoros

1
(-)

Yes
(-)

No

Partial

4

2

Average

Yes

Yes

No

No

No

3. Kenya

50
(8)

Yes
(1991)

Yes

Partial

1

1 3/

Average

Yes

Yes

Yes

Yes

Yes

4. Madagascar

5
(3)

Yes
(1995)

No

Full

2

2

Average

Yes

Yes

N/A

Yes

N/A

5. Malawi

4
(-)

Yes
(1989)

No

Full

1

2

Average

Yes

Yes

Yes

Yes

No

6. Mauritius

10
(5)

Yes
(1988)

Yes

Full

1

1

Good

Yes

Yes

Yes

No

Yes

7. Namibia

5
(4)

Yes
(1998)

No

Full

4

4

Good

Yes

No

Yes

Yes

Yes

8. Rwanda

5
(1)

Pending
-

Yes

Full

N/A

N/A

Low

Yes

Yes

Yes

N/A

Yes

9. Seychelles

5
(4)

Yes
(1997)

No

Full

1

1

N/A

N/A

N/A

Yes

Yes

N/A

10. Swaziland

5
(4)

Pending
(1975)

Yes

Full

3

1

Good

Yes

Yes

Yes

Yes

Yes

11. Tanzania

18
(10)

Yes
(1991)

No

Partial

2

2

Low

Yes

Yes

Yes

N/A

Yes

12. Uganda

20
(11)

Yes
(1993)

Yes

Full

2

1

Average

Yes

Yes

Yes

Yes

Yes

13. Zambia

21
(6)

Yes
(1994)

Yes

Partial

1

2

Average

Yes

Yes

Yes

Yes

Yes

14. Zimbabwe

7
(3)

Yes
(1965)

Yes

Full 6/

2

2

Average

Yes

Yes

Yes

Yes

Yes


Source: IMF Staff Reports; and data provided by the authorities.

1/ Branches and subsidiaries of foreign banks in parenthesis.
2/ 1. Fully implemented. 2. Partially/ or substantially implemented. 3. Arrangements for implementation being made. 4. Arrangements for implementation not in place.
3/ Kenya Export Development Fund Project. 
4/ As single or connected borrower.
5/ Basle-based.
6/ However, the Ministry of Finance retains the power to licence banks.

Table 15. CBI Countries: Implementation of Investment Deregulation,
and Labor Market Measures
(As of end-December 1998)


Country

Investment Deregulation


 

 

Labor Market Issues


 

Liberalize Approval Procedures 1/

Publish Investment
Code

45-60 days' Statute of Limitation on Inv. Applications

Ratify/ Implement MIE Charter

Double Taxation Agreements

Cross Listing of Stocks

Implement COMESA Visa Protocol

Improve Processing of Residence/ Work Permits

Short Term Entry Permits for Border Residents


1. Burundi

Full

Full

Partial

Pending

Pending

Pending

Partial

Partial

Pending

2. Comoros

Pending 2/

Full

Full

Full

Pending

--

Pending

Pending

Full

3. Kenya

Full

Pending

Full

Pending

Partial

Partial

Partial

Partial

Full

4. Madagascar

Full

Full 3/

Partial

Pending

Partial

--

Pending

Partial

n.a.

5. Malawi

Full

Full

Partial

Pending

Partial

Partial

Full

Pending

Full

6. Mauritius

Full

Full 4/

Pending

Pending

Partial

Pending

Pending

Pending

n.a.

7. Namibia

Full

Full

Full

n.a.

Partial

Partial

Partial

Full

Full

8. Rwanda

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

n.a.

9. Seychelles

Full

Full

Full

Pending

Partial

Pending

Full

Partial

n.a.

10. Swaziland

Full

Full

Full

Pending

Partial

Partial

Pending

Pending

Full

11. Tanzania

Full

Full

Full

Partial

Partial

Pending

Full

Full

Full

12. Uganda

Full

Full

Full

Partial

Partial

Pending

Full

Full

Full

13. Zambia

Partial

Full

Pending

Partial

Partial

Partial

Full

Pending

Full

14. Zimbabwe

Full

Partial

Partial

Pending

Partial

Partial

Partial

Partial

Partial


Source: Implementation updates provided by Technical Working Groups.

Note: The category, Pending runs a wide range, from administrative/legislative arrangements in preparation to not yet identified.

1/ Includes creation of a one-stop approval authority.
2/ Passed by paliament but not come into force.
3/ Integrated into general tax law.
4/ Industrial Expansion Act of 1993.

The Cross-Border Initiative in Eastern and Southern Africa
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