African countries are making steady progress in developing financial markets to mobilise capital for businesses and infrastructure, although limited trading activity continues to constrain investment and economic growth.
Over the last decade, the markets have made tangible progress with more robust regulatory frameworks, greater transparency, a wider range of investment products, and expanded digital access.
The tenth 2026 edition of the Absa Africa Financial Markets (AFMI) index, produced by the Official Monetary and Financial Institutions Forum (OMFIF) with Absa Group and the United Nations Economic Commission for Africa, gave 29 countries an average score of 56. Twenty-one countries saw their scores rise, showing better economic conditions, stronger foreign exchange reserves, and more transparency.
Every country in the survey showed better Gross Domestic Product (GDP) growth scores. In 20 countries, both inflation and external debt-to-GDP ratios went down. Twelve countries increased their range of financial products, 19 started environmental, social, and governance projects, and 11 began climate stress testing. At the same time, 26 countries are working to make mobile wallets and payment services more available.
Fihla said, “It is the progress that countries have made over time that is all the more impressive,” adding that “through providing data-rich discussions on Africa’s financial market development, AFMI’s role will be just as important in the years ahead as in the decade behind.”
Still, progress is uneven. Limited liquidity is holding back trading and capital raising, showing that good policies and strong infrastructure are not enough to attract investors.
In the 2025 AFMI, Botswana scored 63 points, making it one of Africa’s stronger financial markets. It ranked first in macroeconomic environment and transparency, with a score of 85. In 2025, Botswana’s pension system also led the way, with the highest pension fund assets per working-age person among the countries surveyed, while in 2026 results show Botswana still does well in foreign exchange reporting, earning a perfect score along with 20 other countries.
In the 2026 survey, South Africa retained the top spot, followed by Mauritius and Namibia. Cape Verde was the biggest mover, climbing six places to 13th on stronger foreign exchange reserves and new sustainable finance initiatives. Ghana rose four places to sixth as falling inflation, stronger stock market activity and improving economic conditions aided its recovery from a debt crisis. Botswana and Nigeria both dropped two spots, now ranking seventh and eighth. Nigeria’s lower ranking was due to weaker foreign exchange access and transparency, while Botswana was affected by higher inflation.
Compared with regional peers, Namibia leads the pension fund development pillar, while Mauritius and South Africa remain among the continent’s strongest overall markets.
Ghana has made notable gains in fixed-income trading, demonstrating how increased market activity can support development.
Kenny Fihla, Absa Group Chief Executive, said, “African policy-makers and regulators have led reform efforts that have made their country’s financial market ecosystems more open, more transparent and more accessible.” For Botswana and similar countries, the main goals now are to offer more investment products, boost trading in secondary markets, improve legal protections, and turn local savings into productive investments. Keeping up these reforms is key to attracting capital, funding businesses, and supporting broad economic growth in Africa.
Fihla said, “It is the progress that countries have made over time that is all the more impressive,” adding that “through providing data-rich discussions on Africa’s financial market development, AFMI’s role will be just as important in the years ahead as in the decade behind.”
