By Adam Ujazdowski. Polish original published on 8 November 2026 at 11:57 UTC. English edition published on 8 November 2026.
The value of companies listed on African stock exchanges rose by 49% in 2025, compared with 21% worldwide, but the surge did not produce a wave of new listings. The OECD recorded just seven initial public offerings, raising about $1 billion. Access to finance remains limited, particularly for smaller businesses.
The Africa Capital Markets Report 2026, published on 6 November, describes an unevenly developed market. Large companies and governments continue to raise funding despite global economic turbulence, while many economies lack a broad investor base and liquid securities markets. The OECD says this makes it harder for companies to sustain investment when banks tighten lending conditions.
Higher valuations drive most of the increase
Rising share prices at companies already listed accounted for most of the increase in market capitalisation. New listings contributed just 3% of the gain. Higher commodity prices, the appreciation of some currencies against the dollar and improving economic conditions supported the rise.
Market capitalisation growth in 2025, %
Market capitalisation as a share of GDP at end-2025, %
Market capitalisation is the total market value of listed companies. These are two different measures; growth in capitalisation is not a stock-index return.
Source: OECD, Africa Capital Markets Report 2026. Chapter 2, section 2.2.1.
Even after that growth, market capitalisation was equivalent to 43% of Africa’s GDP, compared with 68% across emerging markets. South Africa, Morocco, Egypt and Nigeria accounted for 88% of African market value. About 85% of equity proceeds came from follow-on offerings by companies already listed.
Equity offers by African companies, US$ billion at 2025 prices
The annual average is the 2020–24 total divided by five. Offers are classified by the issuer’s country of domicile.
Source: OECD, Africa Capital Markets Report 2026. Table 2.1 and Annex 2.A.
Corporate bond markets remain small
The corporate debt market covered by the OECD—bonds, syndicated bank loans and private credit—was worth $211 billion at the end of 2025. Syndicated loans, provided by groups of banks, accounted for 81% of that amount. Outstanding bonds totalled $35 billion, 44% below their 2015 peak in real terms.
The OECD database recorded only 20 corporate bond issues in 2025, including 17 by financial companies. Africa accounted for 2.7% of global GDP but just 0.3% of the global corporate debt market covered by the study. The gap illustrates how little this financing channel has developed relative to the size of the economy.
Africa's share of global totals in 2025, %
New corporate debt financing by currency in 2025, %
The first panel measures debt outstanding; the second measures new financing. Foreign-currency share: 100% minus 17%. Coverage comprises bonds, syndicated loans and private credit, rather than all corporate debt.
Source: OECD, Africa Capital Markets Report 2026. Chapter 3, Figures 3.2 and 3.4.
Only 17% of new corporate debt financing was denominated in local currencies. For a business earning revenue in its domestic currency, dollar debt creates an additional risk: depreciation increases the cost of servicing it. The OECD identifies deeper local bond markets as a way to reduce that dependence.
Financial savings are concentrated in a few countries
Estimates cited in the report put African financial assets at more than $4.4 trillion. These include assets held by banks, pension funds, insurers and sovereign investment institutions, as well as central-bank reserves. The total is not a pool of uncommitted money that could all be directed into business investment.
Pension fund assets illustrate the differences between countries. They were equivalent to 84% of GDP in South Africa and 58% in Botswana, but just 6% in both Nigeria and Morocco. The figures refer to 2024 or 2025, depending on data availability.
Pension fund assets as a share of GDP, %
Latest available figures in the report; years differ by country. Pension assets are not equivalent to money invested in domestic businesses.
Source: OECD, Africa Capital Markets Report 2026. Chapter 6, Figure 6.1.
Low and irregular incomes constrain the expansion of formal savings systems, as does informal employment, which accounts for about 85% of employment in Africa. Existing funds often invest a large proportion of their money in government securities. The OECD recommends gradually broadening investment options while protecting future pensions and maintaining appropriate risk controls.
State-owned companies could broaden equity markets
Large state-owned enterprises play a significant role in African mining, energy and infrastructure, but many remain unlisted. Listed large state-owned companies accounted for just 27% of the assets of the non-financial group studied, compared with 45% in emerging markets.
Listed share of large state-owned enterprise assets in 2024, %
Non-financial enterprises. This is a share of assets in the group studied, not the percentage of companies listed.
Source: OECD, Africa Capital Markets Report 2026. Chapter 5, Figure 5.2.
The OECD describes several approaches to reform. Egypt is selling stakes to investors, Ethiopia has combined changes in state ownership oversight with the launch of a stock exchange, and Morocco is preparing businesses to access a wider range of funding sources. Reliable financial reporting, effective governance and reduced political interference in management are common requirements.
Kenya widens access to government bonds
Kenya’s DhowCSD platform, launched in July 2023, illustrates changes in debt markets. It allows investors to open accounts, bid for government securities and settle transactions online or through mobile devices. Retail investors’ share of government debt securities rose from 3.7% in June 2023 to 6.3% in June 2026.
Retail investors’ share of government debt securities, %
Annual bond turnover, KES billion
The expansion of DhowCSD accompanied higher retail participation and turnover. Other market reforms also contributed. KES denotes Kenyan shillings.
Source: OECD, Africa Capital Markets Report 2026. Chapter 4, Box 4.2.
Annual bond turnover increased from KES 665.2 billion to about KES 3 trillion between the 2022/23 and 2025/26 financial years. The OECD also links the improvement to other measures supporting market liquidity. Digital access makes participation easier, but its effect also depends on the instruments available and trust in institutions.
Poorly prepared projects still struggle to attract investors
The report identifies barriers within investment projects themselves. In Uganda, fewer than 12% of applications for climate-project financing from a development bank met investment-readiness requirements. Weak documentation, incomplete technical plans and unreliable revenue models were among the problems.
There is also a mismatch in financing terms. Green-investment loans for Uganda’s smallest businesses rarely run for more than seven years, while some projects need 10–20 years to generate their returns. A public guarantee can facilitate an individual transaction, but it does not create a market for long-term financing.
The OECD recommends standardising documentation, pooling small projects and improving project preparation to reduce appraisal costs.
Source: OECD, Africa Capital Markets Report 2026. Charts and calculations adapted from the report’s data.
