Kigali International Financial Centre (KIFC) made the biggest leap to rank as the 67th most competitive financial centre globally, up from the 81st spot, according to the new Global Financial Centres Index (GFCI).
Kigali improved by 14 places and 26 points in rating, just above Mauritius which only improved by 7 places and 17 points, as well as Casablanca which saw a drop in its ranking by 2 places.
The index, published on March 21, provides evaluations of future competitiveness and rankings for 121 financial centres around the world.
Kigali debuted on the global rankings in December 2021, slightly over a year after it started operations.
In analysing the competitiveness of financial centres, the index takes into context five broad areas of competitiveness including business environment, human capital, infrastructure, financial sector development, as well as reputation.
According to the index, global investors and financial experts consider Kigali to become among the most significant financial centres over the next two to three years. This, in part, is based on the city's ability to attract many international experts.
Who ranks where?
Globally, New York leads the index, with London second, ahead of Singapore in third place, which has maintained its slight lead over Hong Kong in fourth position.
San Francisco remains at number five, with Shanghai overtaking Los Angeles in sixth place, with the latter dropping to eighth.
Geneva climbed to seventh, with Chicago stable in ninth, and Seoul entering at number 10.
London continues to lead in the region in second place globally, with six Western European centres featuring in the top 20 in GFCI 35.
On the other hand, Helsinki, Vienna, Guernsey, Oslo, Milan, Stockholm, Amsterdam, Berlin, Munich, and Copenhagen declined in the rankings.
Dubai and Abu Dhabi continue to take first and second places in the Middle East and Africa region.
Tel Aviv has gained 9 places, moving to third, with Casablanca the leading African centre and fourth in the region.
Despite being a new and emerging financial centre, Kigali International Financial Centre was also mentioned among the top centres likely to become more significant going forward as well as among centres enjoying reputational advantage.
According to the authors of the report, access to clients and suppliers is critical for financial centres. They highlight that proximity to a large and diverse customer base, both domestically and internationally, can attract financial institutions looking to expand their reach.
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"Similarly, access to a wide range of suppliers, such as legal, accounting, and consulting services, enhances the competitiveness of financial centres," authors said.
Spearheaded by the Rwanda Finance Limited (RFL), Kigali International Financial Centre (KIFC), commenced operations around 2020 as an initiative that seeks to position Rwanda as a preferred jurisdiction for investments into Africa, as well as reform the domestic financial industry.
The centre continues to attract investors and members ranging from social impact investors, angel investors, investment companies, financial services providers, and corporate services providers, among others.
Rwanda Finance Limited (RFL) has also overseen major reforms in the laws, in a move that aims at improving the attractiveness of the financial ecosystem to local and international capital.
The GFCI is updated every March and September. It is generated by Z/Yen, a London-based Commercial Think Tank and the China Development Institute (CDI), a think tank that develops solutions to public policy challenges and is in a strategic partnership for research into financial centres.
In the top 20 ranked centres, none changed more or less than 4 rank places. According to the index, this suggests no major changes in the economic outlook across the leading economies in the world.
