Ghana has the 7th Strongest Financial Market in Africa
Ghana has been ranked as the seventh strongest financial market in Africa, with a financial market index score of 60, according to the Absa Africa Financial Markets Index report.
The country placed behind Botswana, Namibia, Nigeria, Uganda, Mauritius, and South Africa, with South Africa retaining its position as the continent’s strongest financial market.
The ranking reflects Ghana’s improving financial market fundamentals, supported in part by the exceptional performance of the Ghana Stock Exchange (GSE) in 2025. The bourse recorded a historic rally, closing the year as the second-best performing stock market in Africa.
Driven by post-debt restructuring recovery and improved macroeconomic stability, the GSE Composite Index surged 79.40 percent to 8,770.25 points, while the Financial Stock Index rose by 95.19 percent, marking its strongest performance since 2004.
For the banking sector, the country boasts of total deposits and assets value of GHS 325.3bn and GHS 446.9bn at end-December 2025, marking a 17.8% and 21.5% growth respectively.
The Absa Africa Financial Markets Index assesses financial market development across the continent based on transparency, accessibility, and openness, providing a comparative snapshot of how countries are strengthening their capital markets.
The 2025 edition of the report also evaluates Africa’s financial performance against the backdrop of evolving global dynamics, including the impact of United States trade policies under President Donald Trump, particularly elevated trade tariffs.
While the report noted that overall outcomes may appear subdued, it stressed that underlying indicators point to continued progress across the continent.
“On a headline basis, the last year may feel like a bit of a disappointment. Just 10 of the 29 countries in the 2025 index saw their overall scores improve,” the report stated.
However, it added that deeper analysis shows sustained advancement, especially in foreign exchange reforms, improved product diversification, and climate change initiatives across African markets.
The report identified currency stability as a critical factor in insulating African economies from external shocks, arguing that a more stable currency environment would significantly reduce vulnerability to global volatility.
This view was reinforced by Ahmed Attout, Director of Financial Sector Development at the African Development Bank (AfDB), who underscored the importance of local currency financing.
“Long-term local currency financing is key to economic development,” he said.
Mr. Attout noted that when financial systems effectively mobilise domestic resources and allocate capital efficiently, households gain more savings and investment options, while businesses and governments are better positioned to fund long-term investments.
He added that countries with strong domestic capital markets are more resilient to external shocks, including currency volatility and global interest rate hikes, reinforcing the importance of continued financial market reforms across the continent.
