Analysis | October 14, 2026
African financial markets are making measurable progress, but deeper trading activity remains a major obstacle to turning that progress into dependable long-term funding for businesses and governments.
The 2026 Africa Financial Markets Index, compiled by Absa and the Official Monetary and Financial Institutions Forum, found that 21 of 29 countries improved their scores. The average score reached 56, its highest level in the index’s ten-year history. South Africa ranked first, followed by Mauritius and Namibia, while Cape Verde recorded one of the largest gains and Ghana also improved its position. Nigeria and Botswana slipped in the rankings.
The index assesses factors including access to foreign exchange, the ability to raise and move capital, pension investment, market infrastructure and regulation. Its results suggest that policy improvements and better macroeconomic conditions are helping more African markets become investable.
Yet progress in formal rules and infrastructure does not automatically create liquid markets. Where few securities trade regularly, investors may struggle to enter or exit positions without moving prices. Companies can face higher costs when raising capital, while long-term investors may remain cautious about committing funds.
What the improvement does and does not mean
A stronger index score is a sign of institutional progress, not proof that financing has become easy for African businesses. Market depth depends on a wider pool of issuers and investors, credible disclosure, predictable regulation, effective settlement systems and instruments that meet local savings needs.
For policymakers, the next step is to turn market reforms into regular trading and broader participation. For companies, the lesson is to treat capital-market access as a long-term capability built on governance, transparency and investor confidence, rather than a one-off fundraising event.
Source: Reuters, African Financial Markets Index report, October 13, 2026.