The Official Monetary and Financial Institutions Forum (OMFIF) is now circulating its quite interesting 2026 Absa-Africa Financial Markets Index (the "2026 Index"). "It tracks progress across 29 African countries through a survey of more than 50 organisations based in the region." (Press Release).
The posted Press Release also explained in more detail that:
Over the last 10 years, the Absa Africa Financial Markets Index has assessed financial development in African countries based on measures of market accessibility, openness and transparency. It tracks progress across 29 African countries through a survey of more than 50 organisations based in the region. Supported by the United Nations Economic Commission for Africa, the index is a benchmark for examining how progress enhances investment appeal and promotes economic resilience.
The 2026 report further examines developments in Africa’s financial landscape, including the diversification of financial products, the adoption of environmental, social and governance frameworks, the future of digital innovation and efforts to strengthen regulatory frameworks. This year, in addition to assessing progress made over the last 12 months, the report will look back over a decade of transformation to see which countries have seen the greatest development in their financial markets.
The 10th edition of the Absa Africa Financial Markets Index will launch at the International Monetary Fund-World Bank annual meetings in Bangkok, Thailand. The event will bring together policy-makers and financial market participants from across Africa to assess this year’s developments and discuss practical ideas for further improvements. It is an opportunity for policy-makers to share best practices and learn from each other, while celebrating 10 years of steady progress.
The Executive Summary of the 2025 Report follows
6 | Absa Africa Financial Markets Index 2025
THE past 12 months have seen highs and lows around the
world. Difficult macroeconomic conditions, compounded by a
turbulent trade environment and geopolitical tensions, have
created challenges for African economies. This year’s index
reveals five key findings.
1. Progress despite global headwinds
Tough macro conditions have weighed on overall scores in
this year’s index, leading to a mixed performance. While 10
countries improved, scores fell in 11 and were unchanged in
eight. The most notable challenges were weakening market
depth (Pillar 1) and a slide in pension fund development
(Pillar 4).
However, reform-minded countries have been able to
weather the difficult environment better than economies
that did not implement changes. Considerable progress was
made in improving transparency in foreign exchange markets
(Pillar 2) and adopting netting legislation (Pillar 6). Botswana,
Lesotho and Rwanda stand out for sizeable improvements in
their overall scores.
Mixed performances across the index suggest that falls
in scores are likely to be a case of passive decline rather
than active. Countries have taken steps to develop markets
in a number of different areas, but their progress has been
hampered by an unsettled global environment.
2. Major FX reforms implemented
While many economies faced a decline in reserves adequacy
this year, countries that prioritised tackling inefficient FX
regimes fared best. Nigeria and Uganda led the way, rolling
out comprehensive reforms to improve market credibility and
interbank liquidity.
The Central Bank of Nigeria announced changes targeting
the fragmentation of FX windows, a big investor backlog and
market operations. The Bank of Uganda focused on liberalising
the FX market, improving interbank liquidity and increasing
reporting standards. These reforms are critical to attracting
domestic and foreign investment, lowering transaction costs
and boosting cross-border trade.
3. African markets embrace new financial instruments
Despite the difficult backdrop, countries are expanding and
diversifying their financial product offerings to attract both
domestic and foreign investment to the continent. A wider
range of products, including Islamic and climate-related
finance, helps economies build resilience against global shocks
and keep pace with investor trends.
New financial products launched in the past year have
a strong focus on infrastructure. Tanzania issued its first
sovereign sukuk bond in February, which aims to fund
infrastructure and social development projects. It also
launched its first Samia infrastructure bond to finance critical
development projects. Meanwhile, Kenya approved its first
asset-backed security to help finance a new sports complex.
In total, 18 AFMI economies now offer environmental,
social and governance-related or Islamic financial products,
providing crucial diversification for both short- and long-term
investment.
4. Countries remain focused on climate change
There have been backtracks on ESG goals globally in the past
year due to changes in the US administration’s priorities.
However, many African economies remain focused on
introducing policies and products that foster action on climate
concerns.
Four AFMI countries have issued green bonds for the
first time this year, taking the total number to 14. Ghana
introduced climate stress testing to its financial market
frameworks, joining the eight other countries already doing
so, while South Africa went one step further, conducting its
first climate risk stress test on six systemically important
banks. Egypt introduced Africa’s first regulated voluntary
carbon market, marking a milestone for the continent in
climate-aligned financial instruments.
5. Optimism for economic growth
Expectations for gross domestic product growth rose in 22
countries this year despite the more challenging economic
conditions. Ethiopia has the highest projected annual growth
rate over the next five years at 7.4%, supported by structural
reforms and a focus on investing in infrastructure. This
widespread progress suggests that African economies are
building resilience to global shocks and find themselves better
able to weather storms than they were a few years ago.
There was also clear progress in taming inflation in the
year to June 2025. It fell in 22 countries, with Egypt and
Nigeria leading the way. Similarly, external debt-to-GDP ratios
improved in 16 economies due to tighter fiscal discipline.
However, while just three countries are in debt distress,
another five remain at high risk of slipping into it, suggesting
that there is further to go in safeguarding African economies
from global turbulence.
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