The Cross-Border Initiative in Eastern and Southern Africa - Tables 13

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

2. Comoros

1
(-)

Yes
(-)

Partial

Average

Yes

3. Kenya

50
(8)

Yes
(1991)

Yes

Partial

1 ^3/

Average

Yes

4. Madagascar

5
(3)

Yes
(1995)

Full

Average

Yes

N/A

Yes

N/A

5. Malawi

4
(-)

Yes
(1989)

Full

Average

Yes

6. Mauritius

10
(5)

Yes
(1988)

Yes

Full

Good

Yes

7. Namibia

5
(4)

Yes
(1998)

Full

Good

Yes

8. Rwanda

5
(1)

Pending
-

Yes

Full

N/A

Low

Yes

N/A

Yes

9. Seychelles

5
(4)

Yes
(1997)

Full

N/A

Yes

N/A

10. Swaziland

5
(4)

Pending
(1975)

Yes

Full

Good

Yes

11. Tanzania

18
(10)

Yes
(1991)

Partial

Low

Yes

N/A

Yes

12. Uganda

20
(11)

Yes
(1993)

Yes

Full

Average

Yes

13. Zambia

21
(6)

Yes
(1994)

Yes

Partial

Average

Yes

14. Zimbabwe

7
(3)

Yes
(1965)

Yes

Full ^6/

Average

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