Absa and the Official Monetary and Financial Institutions Forum found that 21 of 29 African financial markets improved in their 2026 index. The average score reached 56, its highest level in the index's 10-year history and six points above the first edition in 2017. South Africa retained first place, followed by Mauritius and Namibia. The report nevertheless found that thin trading remained an obstacle to investment and long-term financing.
The Africa Financial Markets Index assesses transparency, accessibility and openness across markets representing about 80% of the continent's population and gross domestic product. Its measures cover capital-market depth, access to foreign currency, pension assets, economic conditions and regulation. The 2026 edition adopted fixed benchmarks of good practice and recalculated historical scores to preserve comparisons. More than 50 organisations based in the region contributed to the survey.
BROADER IMPROVEMENT
All 29 countries recorded stronger economic-growth scores, while inflation declined in 20 and external debt as a share of gross domestic product improved in 20. Product diversity also advanced, with 12 countries improving that component. Kenya's infrastructure-backed security, Egypt's derivatives initiatives and a broader range of sustainable products were cited as examples.
Cape Verde was the largest mover, climbing six places to thirteenth after stronger foreign-exchange reserves and new sustainable-finance initiatives. Ghana rose four places to sixth as inflation eased, stock-market activity strengthened and economic conditions improved after its debt crisis. Botswana and Nigeria each fell two places, with Nigeria affected by weaker foreign-exchange access and transparency scores and Botswana by higher inflation.
LIQUIDITY STILL LAGS
The report cautioned that wider product ranges and better market infrastructure had not consistently produced more trading. Limited secondary-market activity can make it harder for issuers to raise capital at reliable prices and for investors to enter or leave positions. That gap matters as African markets seek to support larger equity and debt transactions alongside infrastructure investment.
The next test is whether regulatory improvements translate into deeper turnover rather than higher index scores alone. OMFIF said the coming phase should emphasise market quality, functioning and the direction of capital towards long-term priorities. Country-level reforms and 2027 trading data will indicate whether the decade-high average is accompanied by stronger market liquidity.