Africa's financial markets have demonstrated remarkable resilience and growth in 2015, navigating global economic challenges through strategic reforms, technological advancements, and increased investor participation.

According to the Africa Financial Markets Index (AFMI) Report 2024, developed by OMFIF in collaboration with Absa Group Limited, the financial market is projected to experience an upward trajectory in 2025. The report offers a comprehensive evaluation of 29 African countries based on six pillars: market depth, access to foreign exchange, market transparency and regulation, capacity of local investors, macroeconomic opportunity, and enforceability of financial contracts. ​

The improvements are a welcome development after experts revealed that private capital investments in Africa fell by 24% to $5 billion in 2023 from $6.5 billion in 2022, causing a decline in the African financial market. Like elsewhere in the world, African financial markets felt the effects of tightened global financial conditions, a growth slowdown, heightened inflation, exchange rate depreciation, and declining foreign exchange reserves.

During the period, African stocks faced a more pronounced decline compared with those of emerging markets and developing economies, reflecting the greater risk aversion of global investors to the continent. The tightening of interest rates resulted in lower stock valuations and prices in Africa, with total returns (net of dividends) declining at the onset of the interest rate hiking cycle in 2021 until mid-2022 and oscillating around zero in 2023.

In the second quarter of 2025, African financial markets have lived up to expectations and seen improvements driven by increased economic growth, reduced inflation, and ongoing regional integration efforts. These improvements are also fueled by economic reforms, declining inflation, and improvements in fiscal and debt positions. While growth is projected to be positive, the continent still remains vulnerable to global crisis.

This article delves into the top 10 African countries with the most mature financial markets in 2025, highlighting their achievements, reforms, and the factors contributing to their advancement.​

• Highlights: Mauritius continues to solidify its status as a financial hub in Africa, with a focus on offshore banking and investment services. Its stable political environment and commitment to regulatory excellence have made it an attractive destination for investors seeking exposure to African markets.​

1. South Africa

• Key Strengths: Deep and liquid markets, robust regulatory framework, diversified financial instruments
• Highlights: South Africa maintains its position as Africa's most advanced financial market. The Johannesburg Stock Exchange (JSE) remains the continent's largest and most sophisticated exchange, offering a wide range of financial products and attracting significant foreign investment. Despite global economic headwinds, South Africa's financial sector has shown resilience, with inflation dropping to a five-year low of 2.7% in March 2025, providing room for potential monetary easing. ​