Africa’s financial systems faced turbulence over the past year amid global trade disruptions and shifting funding patterns. Disruptions to long-standing trade deals, rising tariff uncertainties, and reduced foreign aid triggered sharp swings in asset prices across the continent.
The annual index by pan-African bank Absa and London think tank OMFIF showed mixed results, with ten of 29 countries recording improvements. Eleven nations saw declines, while eight remained unchanged, highlighting uneven progress amid efforts to reform foreign exchange regimes and diversify financial products.
Absa Group CEO Kenny Fihla acknowledged the headline figures appeared disappointing but stressed ongoing progress in climate action and financial innovation. Momentum in climate-aligned finance grew, with four countries issuing green bonds for the first time and Egypt launching Africa’s voluntary carbon market.
Ghana implemented climate stress testing for banks, signalling a shift toward resilience against environmental and economic shocks across the region. Bond market activity slowed continent-wide, with trading subdued outside South Africa, Egypt, and Uganda due to tighter liquidity and cautious investor sentiment.
Nigeria and Ghana saw declines in secondary bond trading following foreign exchange reforms and debt restructuring, dampening overall market performance. Equity markets also struggled outside South Africa and Egypt, with turnover dropping 11% year-on-year amid broader global uncertainties.
South Africa retained its top spot in the index, followed by Mauritius and Uganda, reflecting strong transparency, accessibility, and market openness. Nigeria fell to fourth despite major reforms, while Rwanda climbed three spots to 12th thanks to new tax treaties enhancing investor confidence.