African financial markets faced a challenging year in 2024, with liquidity drying up and trading volumes declining amid heightened geopolitical tensions and volatile global trade, Bloomberg reported. Out of 29 countries surveyed by Absa Group’s Africa Financial Markets Index, only 10 posted gains, while 11 saw their scores fall.

The index points to weaker market depth, lower bond trading, and reduced new issuances as key drivers of the decline. Pension fund assets also suffered across 19 markets, reflecting broader investor caution. The drop marks the steepest downturn since 2021, when most African markets also posted losses.

Yet the picture is not uniformly bleak. Analysts highlight ongoing reforms and product innovation across the continent. Nigeria and Uganda have streamlined foreign exchange trading, while Tanzania launched its first sovereign sukuk bond. Eighteen of the surveyed economies now offer ESG-focused or Islamic financial instruments, signaling a push toward sustainable and diversified markets.

“While headline figures suggest disappointment, progress is visible in areas such as market reforms, product diversity, and climate-related finance,” said Absa CEO Kenny Fihla. Ahmed Attout, African Development Bank director for financial sector development, added that structural reforms continue to underpin Africa’s resilience.

Top performers remained largely unchanged, led by South Africa, Mauritius, Uganda, Nigeria, and Namibia. Botswana moved up one spot to sixth, Ghana slipped to seventh, and Morocco, Kenya, and Zambia maintained their positions. Egypt stayed at 11th, while Ethiopia remained at the bottom of the index.