Twenty-one of the 29 African financial markets assessed improved their score in 2026, but the thin volume of trading continues to limit their ability to attract capital, according to the index published Wednesday, 14 October, by Absa Group and the Official Monetary and Financial Institutions Forum.
The average score reaches 56 points, its highest level since the index was created ten years ago and six points above 2017. This progress rests notably on slowing inflation, stronger foreign exchange reserves and regulatory reforms. The 29 economies improved their growth score, while inflation and the weight of external debt fell in 20 countries.
South Africa retains first place thanks to the size and liquidity of its markets, the diversity of products and the presence of institutional investors. Mauritius and Namibia complete the top three. Cape Verde posts the strongest gain, climbing six places to thirteenth, supported by its foreign exchange reserves and sustainable finance initiatives.
Trading still too limited
The report notes that markets have broadened their product range and modernised some infrastructure. Twelve countries improved their score for diversity of instruments, with new sustainable products, derivatives and infrastructure-backed securities. However, this development has not everywhere been matched by a sufficient increase in secondary-market transactions.
This lack of liquidity has concrete effects on financing. A market where securities trade little makes pricing harder and can raise the cost demanded by investors. Companies therefore remain more dependent on bank credit, while institutional savings struggle to be directed towards infrastructure and long-term investment.
Ghana gains four places to reach sixth, supported by falling inflation, stock market activity and an improving economic outlook after its debt crisis. Botswana and Nigeria each drop two places, to seventh and eighth respectively. Access to foreign currency and transparency weigh on Nigeria, despite reforms including market valuation of bond funds and a new platform for treasury bills.
Sustainable finance is also advancing in regulatory frameworks. Nineteen countries report environmental, social and governance initiatives, and eleven have put in place climate stress tests, including Benin, Seychelles and Tanzania.
The index covers economies representing around 80% of the continent’s population and gross domestic product. It measures market depth, access to foreign exchange, transparency, the development of pension funds, the macroeconomic environment and the strength of the legal and regulatory framework.
The 2026 edition introduces a methodology based on fixed benchmarks of good practice rather than on comparison between countries alone. Historical series have been recalculated to preserve comparability. The report draws on quantitative data and a survey of more than 50 central banks, stock exchanges, regulators, investors and development institutions.