KAMPALA, October 16, 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.
As a result, countries in this year’s Absa Africa Financial Markets Index have seen their progress hampered by global headwinds. While a third of countries were able to improve their overall scores, the remaining two-thirds saw their scores fall or remain unchanged. However, this is just the surface story. The detail shows important developments in a number of areas.
The index assesses financial market development across the continent through the lens of transparency, accessibility and openness. Now in its ninth year, it provides a benchmark for market infrastructure and an opportunity for policy-makers to learn from improvements across Africa.
With support from the United Nations Economic Commission for Africa, the index covers 29 economies in the region. This equates to approximately 80 percent of the population and gross domestic product of Africa.
Key findings from this year’s edition include:
While many economies faced a decline in reserves adequacy in the 12 months to June 2025, countries that prioritised tackling inefficient foreign exchange regimes fared best.
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
Despite backtracks on ESG goals globally in the past year, four AFMI countries have issued green bonds for the first time this year, taking the total number to 14.
Expectations for GDP growth rose in 22 countries this year despite the more challenging economic conditions.
As Kenny Fihla, chief executive officer of Absa Group highlights: “On a headline basis, the last year may feel like a bit of a disappointment. But the detail shows that progress continues to be made across the region, particularly in foreign exchange reforms, improved product diversity and action on climate change.”
Despite considerable global challenges, there is much cause for optimism in this year’s index. It is clear that the work done by countries in recent years has set the continent in much better stead to weather volatility. “This year’s index comes at a pivotal moment for Africa,’ says Ahmed Attout, director of financial sector development at the African Development Bank. “AFMI 2025 is more than a scorecard; it is a roadmap for building robust, transparent and inclusive financial markets to power Africa’s transformation.”
Claver Gatete, under-secretary general and executive secretary of UN ECA, observes, “Looking ahead, sustaining this momentum will require unwavering commitment to transparency, legal certainty and the expansion of domestic institutional investment.”
https://thecooperator.news/absa-africa-financial-markets-index-2025-to-launch-on-october-16/
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