A person reviewing financial market data on a laptop, highlighting Africa’s expanding digital economy.
African financial markets have reached their highest development score in a decade, with 21 of the 29 countries assessed recording improvements in 2026, according to the tenth edition of the Absa Africa Financial Markets Index (AFMI).
Produced by OMFIF in association with Absa, the Index evaluates the development of African financial markets across a range of indicators, providing an annual benchmark for investors, policymakers and market participants. This year’s average score reached 56, its highest level since 2017 and six points above its inaugural reading.
The findings reflect sustained progress in market infrastructure, foreign exchange resilience, transparency and financial product development, while highlighting the need to translate these advances into deeper liquidity and broader investor participation.
Anthony Kirui, Head of Global Markets, Africa Regions, Absa Corporate and Investment Banking, said: “The significance of these reforms lies in what financial markets can now support. Stronger foreign exchange frameworks, improved transaction infrastructure and more sophisticated instruments have expanded the options available to businesses and investors. The next challenge is ensuring these developments translate into more active markets, reliable pricing and greater confidence in the execution of financial transactions.”
The scale of this progress is evident in Africa’s bond markets. In 2017, only 11 of the 17 countries assessed had established secondary bond markets, with trading concentrated in a handful of economies. Excluding South Africa, traded bonds averaged just 14% of outstanding bonds, highlighting the limited depth of domestic capital markets at the time.
Since then, markets have expanded into derivatives, sukuk and sustainable-finance products, supported by stronger settlement infrastructure and regulatory frameworks. Pension fund assets across AFMI economies also increased by nearly $70 billion in the latest reporting period, representing 24% year-on-year growth, although much of this reflected rising asset valuations. Meanwhile, 16 economies improved their foreign exchange reserve adequacy scores, and 12 recorded advances in financial product diversification.
Despite the progress, the Index finds that increased market capitalisation, bond issuance and product availability have not consistently translated into sustained secondary-market trading or broader investor participation. This underscores the importance of assessing market development not only through structural improvements, but also through liquidity, accessibility and the ability to mobilise capital effectively.
Jeff Gable, Chief Economist and Head of Fixed Income Research, Absa Corporate and Investment Banking, said: “The growth of financial markets does not automatically translate into greater depth, liquidity or more effective capital mobilisation. For international investors, what matters is whether reforms are improving market accessibility, strengthening investor participation and enabling capital to move more efficiently. A decade of evidence provides a clearer picture of where structural progress is taking hold, allowing investors to assess opportunities based on the conditions within individual African economies rather than broad perceptions of continental risk.”
As AFMI marks its tenth edition, the findings highlight the next priority for African financial markets: converting a decade of structural progress into deeper, more accessible and more actively traded markets. The Index continues to provide investors, policymakers and market participants with a consistent evidence base to assess opportunities and inform future reforms.