Africa’s Financial Markets Improve, but High Borrowing Costs Persist

By Adaeze Okafor | Senior Editor, Business, Forbes.ng

African financial markets are becoming more developed, but high borrowing costs, limited liquidity and foreign-exchange constraints continue to hamper businesses’ access to affordable financing, according to the 2026 Absa Africa Financial Markets Index.

Liquidity remains important

Deeper markets can help investors buy and sell assets more efficiently and give companies more ways to raise capital. Limited liquidity, however, can increase transaction costs and make it harder for businesses to attract long-term funding.

Foreign-exchange constraints add uncertainty for importers and companies with international obligations. Policy consistency, transparent financial information, credible regulation and a wider base of domestic investors can help support market development, although progress varies by country.

What investors should watch

Businesses and investors will continue to monitor interest rates, currency availability, market liquidity and the quality of financial disclosures. Country-level findings should be consulted before drawing comparisons between individual markets.

Source: Absa Africa Financial Markets Index 2026 and related reporting by Forbes Africa. The Index assesses market development across African economies, including market depth, foreign-exchange access, transparency and the macroeconomic environment. Read the 2026 Index overview from Absa CIB.

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