The latest Africa Financial Markets Index shows a sharp turnaround, with 21 of the 29 leading economies improving their financial development scores in 2026, a stark rise from the ten upgrades recorded in 2025.
The index, compiled by a Johannesburg-based banking group and an economic consultancy in partnership with a United Nations body, rates market accessibility, openness and transparency across six pillars. Scores rose on average to 56 out of 100, the highest level in a decade.
The index – released today (14 October) by Johannesburg-headquartered banking giant Absa and economic consultancy OMFIF, in partnership with the United Nations Economic Commission for Africa (UNECA) – measures the financial development of the 29 top economies, which represent approximately 80% of the population and gross domestic product (GDP) of Africa. These jurisdictions are measured on market accessibility, openness and transparency, with six key pillars used to score their financial market progress and performance, including access to FX, market depth and macroeconomic opportunity, and legal standards and enforceability.
Improvement was driven by a more favourable macroeconomic backdrop and stronger foreign-exchange reserve buffers. Sixteen jurisdictions reported better reserve adequacy, while twenty economies saw lower inflation and twenty reported healthier external-debt ratios.
FX reserve adequacy improved in 16 economies, with Benin, Côte d’Ivoire, Senegal, Ghana, Cabo Verde and Lesotho recording the most gains.
Leading economies
South Africa retained the top spot with a score of 85, credited to deep capital markets, a wide array of financial products and robust institutional investor participation. Mauritius followed at 77, Namibia at 71, Uganda at 68 and Kenya at 65.
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Bottom performers
At the opposite end, Ethiopia scored 41, remaining the lowest-ranked economy. It trailed Madagascar (44), Tunisia (45) and Mozambique (46). Angola, Senegal and the Democratic Republic of the Congo each posted 47.
Sector-wide trends
All 29 economies recorded stronger GDP growth scores, while inflation fell in twenty nations. Debt-to-GDP ratios improved in the same number, yet Zimbabwe, Malawi and Ethiopia continue to face debt distress.
The UNECA executive secretary warned that larger issuance has not yet generated sustained secondary-market activity, and that many markets remain too small to attract long-term capital. He emphasized the need for deeper, better-functioning markets to fund infrastructure, job creation and climate-resilient projects.
However, he cautioned that stronger regional approaches are required, noting that national markets “remain too small” to produce the scale, liquidity and diversity needed to mobilise long-term capital effectively. “The central finding from the past 10 years is therefore 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,” Gatete stressed.
He also highlighted that the countries have boosted the availability of financial and macroeconomic information, expanded the instruments available to issuers and investors, and modernised elements of their legal and regulatory frameworks.