Business
…releases Africa Capital Markets Report 2026
THE OECD has released its Africa Capital Markets Report 2026, looking at how African capital markets have navigated recent global shocks and geopolitical uncertainty, assessing the latest developments across the region and highlighting priorities for deepening markets.
The report shows that:
- African equity markets performed strongly in 2025 and into 2026, with market capitalization growing 49% in 2025, compared with 20% across emerging markets and 21% globally.
- African financial markets remain small and illiquid, with concentrated ownership, and well below potential. The region accounts for just 0.9% of global financial assets, compared with 2.7% of global gross domestic product (GDP).
- Corporate debt financing also increased compared to recent years, but remains dominated by syndicated loans, while corporate bond issuance is low relative to other regions. USD 6.7 billion in equity capital was raised in Africa in 2025, including around USD 1 billion through initial public offerings (IPOs) and USD 5.7 billion through secondary offerings. Only seven companies completed IPOs during the year.
- Market capitalization of African listed companies at the end of 2025 reached USD 836 billion, equivalent to 43% of the region’s GDP. South Africa, Morocco, Egypt and Nigeria accounted for 88% of the total.
- Foreign‑currency borrowing costs generally declined, and sovereign credit ratings improved among major sovereign issuers, including Egypt, Nigeria and South Africa, and domestic currency issuance is growing.
Overall, capital markets remain under-utilized as a source of long‑term finance – particularly when compared to other emerging market economies – limiting their contribution to economic growth and resilience.
The limited supply of investable assets remains a major constraint in most African capital markets, so expanding the range of investable assets is a key priority.High listing costs and regulatory requirements are common and can discourage companies from accessing public equity markets. Most state-owned enterprise assets are unlisted, giving governments significant scope to leverage their ownership and increase these companies’ participation in capital markets.
A narrow investor base limits depth and resilience in many African capital markets. Pension and insurance assets are concentrated in just four countries, while portfolios in some major markets are heavily weighted towards government securities.
The report points to a major opportunity to mobilize more of Africa’s domestic savings for investment. The report highlights a range of policy areas for government action, including:
- Strengthening macroeconomic and public governance foundations for capital market development;
- Enhancing corporate governance and transparency to reinforce investor confidence;
- Leveraging public debt management to sovereign refinancing risks, which will also help deepen domestic markets;
- Expanding pension and insurance coverage to build long-term domestic investors;
- Harnessing digitalization in finance to broaden access and improve market efficiency.
A.I
Nov. 6, 2026
Tags: OECD