Africa, often referred to as the “last frontier” for investment, has been capturing the attention of the global business community as the second-most populous continent and home to numerous emerging economies.
Africa’s financial markets are becoming increasingly attractive for investors seeking opportunities beyond traditional markets. Over the years, these markets have exhibited impressive progress, making Africa a focal point for business minds and entrepreneurs alike.
With diverse sectors, favourable demographics, and a growing middle class, African countries have worked diligently to improve their investment climates. The result is a fascinating mix of success stories, each unique in its own right, yet all contributing to the continent’s financial transformation.
However, financial markets play an essential role not only in generating economic progress but also in boosting financial inclusion and empowering the people of the continent.
According to the Absa Africa Financial Markets report “Over 40 indicators are considered across six pillars: Pillar 1 – Market depth; Pillar 2 – Access to foreign exchange, Pillar 3 – Market transparency, tax and regulatory environment; Pillar 4 – Capacity of local investors; Pillar 5 – Macroeconomic environment and transparency, and Pillar 6 – Legal standards and enforceability. Pillar scores are based on countries’ relative performance for each indicator, which is rebased to fit a harmonised scale from 10- 100, Overall scores are calculated as an average of the scores from each pillar.”
The goal is to illustrate how economies can reduce investment barriers and promote sustainable growth.
Here are the top 10 African countries with the most booming financial markets, according to the Absa Africa Financial Markets Index
South Africa index 88, Market depth score 100, Access to foreign exchange 88, Market transparency,tax and regulatory environment 98, capacity of local investors 63, macroeconomic environment and transparency 79, legal standards and enforceability 100.
Mauritius index 77, Market depth score 56, Access to foreign exchange 75, Market transparency,tax and regulatory environment 94, capacity of local investors 61, macroeconomic environment and transparency 76, legal standards and enforceability 100.
Nigeria index 67, Market depth score 56, Access to foreign exchange 60, Market transparency,tax and regulatory environment 88, capacity of local investors 27, macroeconomic environment and transparency 79, legal standards and enforceability 90.
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Uganda index 63, Market depth score 46, Access to foreign exchange 67, Market transparency,tax and regulatory environment 79, capacity of local investors 14, macroeconomic environment and transparency 86, legal standards and enforceability 85.
Namibia index 63, Market depth score 43, Access to foreign exchange 56, Market transparency,tax and regulatory environment 61, capacity of local investors 100, macroeconomic environment and transparency 76, legal standards and enforceability 40.
Botswana index 59, Market depth score 54, Access to foreign exchange 68, Market transparency,tax and regulatory environment 78, capacity of local investors 57, macroeconomic environment and transparency 87, legal standards and enforceability 10.
Kenya index 59, Market depth score 42, Access to foreign exchange 70, Market transparency,tax and regulatory environment 92, capacity of local investors 18, macroeconomic environment and transparency 76, legal standards and enforceability 55.
Morocco index 58, Market depth score 60, Access to foreign exchange 76, Market transparency,tax and regulatory environment 89, capacity of local investors 29, macroeconomic environment and transparency 70, legal standards and enforceability 25.
Ghana index 58, Market depth score 46, Access to foreign exchange 51, Market transparency,tax and regulatory environment 82, capacity of local investors 22, macroeconomic environment and transparency 60, legal standards and enforceability 85.
Tanzania index 55, Market depth score 49, Access to foreign exchange 54, Market transparency,tax and regulatory environment 78, capacity of local investors 15, macroeconomic environment and transparency 81, legal standards and enforceability 55.
