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African capital markets have become stronger and more sophisticated as countries across the continent have introduced reforms to boost investment, improve efficiency, and mobilise domestic capital.
Recent developments in Ethiopia, Nigeria, Morocco, South Africa, and other African countries show a move from simply establishing stock exchanges to building deeper, more resilient financial markets.
Speaking at the LMA & ICMA Africa Summit 2026, AFC’s Modupe Famakinwa said Africa must strengthen its market infrastructure to attract global investors.
The trend is evident in Ethiopia, where Ethio Telecom became the first state-owned enterprise to list on the Ethiopian Securities Exchange on May 26. The public offering attracted more than 47,000 investors, marking a significant milestone for the country’s young stock market.
“The listing of Ethio Telecom on the ESX Main Market is not only a major win for ESX but also a testament to the commitment of the Government of Ethiopia to deepen the capital markets,” Ethiopian Securities Exchange Chief Executive Tilahun Esmael Kassahun said.
Ethiopia has also introduced guidelines for green and sustainable investments and expanded market access through additional share listings.
In Nigeria, authorities are focusing on improving market efficiency. On June 1, Nigeria became the first African country to adopt a T+1 settlement cycle, reducing the time required to complete stock transactions from two business days to one.
“The era of T+1 has begun,” Securities and Exchange Commission Director-General Emomotimi Agama said during the transition ceremony in Lagos.
“In just six months, Nigeria has successfully progressed from T+2 to T+1 settlement, joining a growing group of markets embracing faster and more efficient settlement cycles, ”Agama added.
The Nigerian Exchange Group has also intensified efforts to educate young and first-time investors as part of plans to increase retail participation in the stock market.
Morocco is also advancing its financial market infrastructure.
In April 2026, the country launched its futures market and central counterparty clearing house after more than a decade of planning.
“This is a historic moment for Morocco. We are not merely launching new instruments but an entirely new market equipped with world-class infrastructure that will strengthen the resilience and competitiveness of our economy,” Casablanca Stock Exchange Chief Executive Nasser Seddiqi said.
Meanwhile, South Africa continues to maintain one of Africa’s most developed financial markets, offering a wide range of investment products including equities, bonds, exchange-traded funds and derivatives.
The African Development Bank (AfDB) says African institutional investors currently manage an estimated $4 trillion in assets. The bank believes stronger capital markets will help channel more of those funds into infrastructure, industrialisation and long-term economic growth.
Across the continent, countries including Kenya, Ghana, Tanzania, Uganda, Rwanda and Zambia are also expanding their investment product offerings, such as corporate bonds, exchange-traded funds, real estate investment trusts and green bonds.
Analysts say these reforms are helping African markets move beyond their early development stage, with greater focus on liquidity, transparency, investor participation and long-term capital formation.
According to the AfDB, better mobilisation of domestic resources could unlock up to $1.43 trillion for development projects across the continent, helping to reduce Africa’s infrastructure financing gap and accelerate economic growth.
Bonface Orucho, Bird Story Agency
