Uganda ranks third in Africa Financial Markets Index
Now in its ninth year, the index evaluates serves as a vital benchmark for investors, policymakers, and financial stakeholders, highlighting how reforms and innovation across the continent can enhance investment attractiveness and promote economic resilience
KAMPALA, January 28, 2026 — Uganda has retained third place in the 2025 Absa Africa Financial Markets Index [AFMI], reflecting continued progress in macroeconomic stability and market transparency.
The AFMI assessed 28 African countries, with South Africa topping the rankings with 86 points, followed by Mauritius with 76 points. Uganda ranked third with 66 points, maintaining the same position it held in the previous year.
The index report commends Uganda for maintaining low inflation, steadily reducing non-performing loans, and delivering strong macroeconomic performance. It also highlights upgrades to central securities depositories, which have improved settlement efficiency and market liquidity, contributing to the country’s overall economic performance.
Speaking at the 2025 Absa AFMI launch, the Permanent Secretary to the Ministry of Finance and Secretary to the Treasury [PSST], Ramathan Ggoobi, attributed Uganda’s performance to government reforms aimed at accelerating economic growth.
He noted that the next phase of growth would require rebuilding capital markets to provide long-term debt and equity financing.
Available data shows that Uganda’s exports have cumulatively grown to US$ 13.4 billion, largely attributed to the stability of the Ugandan shilling.
The Managing Director of Absa Bank Uganda, David Wandera, said policy changes introduced in 2025 were key to strengthening investor protection. He noted that reforms covering securities offerings and corporate governance are expected to unlock domestic capital and attract investment.
The Bank of Uganda Governor Michael Atingi-Ego observed that one of the country’s key challenges is low capital mobilisation rather than regulatory sophistication, contrary to perceptions within the business community.
He revealed that the central bank is implementing a strategy with targets set for 2027, aimed at sustainably increasing financial inclusion to at least 75 percent and promoting e-payment adoption to at least 46 percent.
Uganda’s financial inclusion currently stands at 73 percent, although the latest FinScope survey places it at 81 percent, largely due to the widespread use of mobile money services and the promotion of financial cooperatives. E-payment adoption is also rising rapidly, with the Bank of Uganda reporting a 166 percent increase in active mobile money accounts to 33.7 million users, alongside a 20.9 percent growth in transaction volumes.
Additionally, 80 percent of transactions in the informal sector are now cashless, signalling a significant shift towards digital payments. This trend is partly attributed to the National Payment Systems Act of 2020, which promotes the transition to electronic payments.
Now in its ninth year, the index evaluates serves as a vital benchmark for investors, policymakers, and financial stakeholders, highlighting how reforms and innovation across the continent can enhance investment attractiveness and promote economic resilience.
https://thecooperator.news/absa-africa-financial-markets-index-2025-to-launch-on-october-16/
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