Absa Africa Financial Markets Index 2024

Now in its eighth year, the Absa Africa Financial Markets Index evaluates the financial development of African countries based on key measures of market accessibility, openness and transparency. This benchmark report provides investors with insights into the market infrastructure across the continent while enabling policymakers to learn from key developments throughout Africa.

AFMI 2024

The index, released annually, provides 29 countries with insights and tools across six metrics to improve the state of their financial markets and gives investors useful insights for doing business on the continent. The Index ranks the maturity, openness, and accessibility of 20 African financial markets based on qualitative and quantitative criteria. The development of local investor capacity and the ability to attract foreign capital are key focus points. The Absa Africa Financial Markets Index draws global attention to the considerable investment opportunities and uncovers the untapped market potential through expert analysis of the African financial markets.

The Index focuses on six fundamental pillars for financial market performance:

Market depth.
Access to foreign exchange.
Market transparency and regulation.
Pension fund development.
Macroeconomic opportunity.
Enforceability of international financial agreements.

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This year's report will take a deeper look at emerging themes reshaping Africa's financial landscape. This includes financial product diversity, the advancement of environmental, social, and governance frameworks, the accelerating adoption of digital technologies and efforts to strengthen legal and regulatory regimes. Meaningful progress across these areas will be pivotal in enhancing Africa's appeal to investors and ensuring resilience amid global economic headwinds.

Key insights from this year’s report

Clear and widespread progress
Overall scores rose in 23 countries (82%), the highest share since the index's inception in 2017.
Further implementation of ESG measures
ESG has been introduced into market frameworks in 23 AFMI countries to broaden their investment appeal. This year, the Western African Economic and Monetary Union published a new green taxonomy to promote ESG assets.
New FX market reforms emerge
Major FX reforms have been implemented in Egypt, Ethiopia, and Nigeria in the past year to move towards more market-based regimes. While this does not directly improve scores for the 2024 index, given the timing of the data collection, these reforms—if sustained—are likely to bolster transparency and activity in FX markets in the coming years.
Weak scores for pensions, legal frameworks and external debt
The lowest average pillar score is once again in Pillar 4, which measures the prominence of local pension funds at just 28. For most countries, the formal pension system remains very underdeveloped. Scores are also relatively low in Pillar 6, which assesses legal standards.
The long view shows clear gains
Though different countries have made gains in different areas, 20 countries have higher scores this year than when they were first introduced to the index.

Meet the team

Anthony Kirui

Head of Global Markets, Africa Regional Operations, Absa Group

Jeff Gable

Head of Macro and Fixed Income Research, Absa Group

Nikhil Sanghani

Managing Director, Economic and Monetary Policy Institute, OMFIF

Taylor Pearce

Lead Economist, OMFIF

Arunima Sharan

Senior Economist, OMFIF

Yara Aziz

Economist, OMFIF

Download the 2024 AFMI Index launch report

Unlocking your potential with insight and sustainable solutions.

Download Previous AFMI Reports

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