A great deal can happen in 10 years. Few areas illustrate this more clearly than the development of Africa’s financial markets, where sustained research, reform and regional competition have helped shape the investment landscape.
Over the past 10 years, the Absa Africa Financial Markets Index, developed by OMFIF and Absa Group, have tracked this evolution and provided a benchmark for policy-makers to learn from improvements across Africa.
With support from the United Nations Economic Commission for Africa, the index covers 29 economies in the region – equating to approximately 80% of the population and gross domestic product of Africa. Each year has evaluated African countries’ financial development based on measures of market accessibility, openness and transparency in order to show how economies can reduce the barriers to investment and, in turn, boost sustainable growth.
The 10th edition, launched amid the International Monetary Fund-World Bank annual meetings in Bangkok, marks an important milestone. Beyond providing a snapshot of current performance, it looks back across a decade of development, examining how far African markets have come, where progress has been uneven and what must change to sustain momentum over the next 10 years.
Achievement despite adversity
Over the past 12 months, Africa has had to navigate a challenging landscape. ‘A long shadow is cast by war between Russia and Ukraine and in the Middle East, high oil prices, and disturbed relationships among the world’s principal economic blocs,’ writes David Marsh, chairman of OMFIF, for the report. ‘Africa, though, has shown merit and maturity in advancing towards greater self-sufficiency.’
Despite adversity within and surrounding the continent, Africa has survived and thrived. The average score across all countries is now 56, the highest of the last 10 years and up six points since the first edition in 2017.
All 29 AFMI countries recorded stronger GDP growth scores in the 2026 edition, providing a more supportive backdrop for investment and capital markets activity. Inflation declined in 20 countries and external debt as a share of gross domestic product also improved in 20 economies.
Product diversity remained one of the clearest areas of progress, with 12 countries improving their scores. Kenya’s infrastructure-backed security and Egypt’s derivatives and alternative-investment initiatives, along with broader sustainable products, are examples of the wider offering.
Sustainable finance also became more firmly embedded in market development strategies. Nineteen countries reported environmental, social and governance initiatives, while 11 implemented climate stress testing – including Benin, Seychelles and Tanzania.
Competition has a driver of progress
Through rigorous comparative analysis, the index encourages policy-makers to identify shortcomings as well as consider how reforms in one market might be adapted elsewhere. In doing so, it has helped establish a common framework for discussing financial market development and created incentives for countries to improve their standing.
That competitive dynamic emerged as a key theme in an episode of OMFIF’s ‘Invested’ podcast with Jeff Gable, chief economist and head of fixed income research and Anthony Kirui, managing director and head of global markets, Africa operations at Absa Group, in conversation with Udaibir Das, vice chair at OMFIF. What has transpired from the index, they note, is a sense of sport to spur progress.
‘At the beginning of this project, I underestimated the potential for regional rivalry,’ says Gable. ‘If you ought to gain the attention of the authorities in Egypt, mention what Morocco’s been doing. If you want to really get the Ghanaians sat up at the table, speak about the progress that Nigeria is making.’
For Kirui, however, competition must translate into credible policy decisions and measurable outcomes: ‘A lot of what the AFMI index measures is really the policy decisions and the outcomes of that. Certainly for investors to get convinced, they need to see both. Ultimately, what we’re trying to do is get policy-makers [and] central banks to start to think along the lines of “If you build it, they will come.”’
The distinction is crucial. A market may introduce new rules but these changes will not automatically generate investment. Investors also need confidence.
Looking to the next decade
From the perspective of Claver Gatete, under-secretary-general and executive secretary at UNECA, the central finding from the past 10 years is that ‘market expansion and market development are not the same. The next phase of reform must place greater emphasis on the quality, depth and functioning of markets.’ Pointing to a shift in ambition, such as strengthening infrastructure, directing capital towards long-term economic priorities and funding Africa’s transition, the implications extend well beyond financial markets themselves. The focus is also on job creation, enterprise development and financial inclusion as this year’s edition of the index spotlights.
Ultimately, Africa’s financial markets have made meaningful advances despite a difficult global backdrop. The task now is to build on that foundation. If the first 10 years demonstrated what sustained measurement and reform can achieve, the next must show how stronger financial markets can contribute more directly to the continent’s long-term prosperity.
Download the Absa Africa Financial Markets Index 2026.
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