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African capital markets have seen significant growth in 2024, marked by the introduction of new Environmental, Social, and Governance (ESG) bonds across Zambia, Botswana, Cabo Verde, and Mauritius.
Additionally, Zambia and Rwanda have enacted climate-related financial regulations, underscoring the continent’s shifting economic landscape and the favorable global financial environment.
According to Claver Gatete, Executive Secretary of the United Nations Economic Commission for Africa, these developments are highlighted in the 2024 Absa Africa Financial Markets Index (AFMI).
Gatete noted that initiatives aimed at expanding financial services access have empowered millions, strengthened local investor capacity and boosted financial inclusion.
In 2023, Egypt, Morocco, and Tunisia implemented financial literacy campaigns to bridge knowledge and access gaps, while Uganda launched an investor education program to improve capital market understanding.
However, Gatete acknowledged challenges along the way.
Many African nations face mounting external debt, complicating government bond listings on international markets and increasing dependence on domestic credit to cover budget deficits.
To address these issues, several countries have introduced major foreign exchange reforms.
In Ethiopia, a more flexible exchange rate is expected to enhance export competitiveness, resolve FX shortages, and attract foreign investment, as part of a shift from state-led to market-oriented economic strategies.
The Economic Commission for Africa consistently emphasises the critical role of efficient, inclusive financial markets in advancing sustainable development.
Robust capital markets are key to mobilising capital needed for economic growth and structural transformation across the continent.
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