Brief
Absa analysts say Africa’s markets have deepened but liquidity gaps remain
Absa CIB officials highlight reforms and lingering structural barriers across African markets.
By Felo News Desk · Published
Absa CIB’s head of Africa regional global markets, Anthony Kirui, and chief economist, Jeff Gable, say a decade of reforms has improved Africa’s financial markets, but thin secondary‑market liquidity, restricted foreign‑exchange access and uneven legal certainty still hinder capital movement, according to a Bizcommunity analysis published on 13 Oct 2026.
What happened
The article reviews progress since the post‑pandemic years, noting that African markets have strengthened their ability to attract investment, manage risk and support sophisticated transactions. It cites the Africa Financial Markets Index (Afmi) as evidence of deeper markets, while also pointing out that many jurisdictions still face limited bond‑market depth and convertibility pressures.
What the reports add
Kirui emphasizes that reforms in foreign‑exchange frameworks and legal protections have been “hard‑won,” yet structural frictions persist. Gable adds that secondary‑market liquidity remains thin in many countries and that legal certainty varies, with several jurisdictions still working toward complete net‑ting frameworks and alignment with international standards.
What was said
"The progress is real, but it has not removed the structural frictions that limit how efficiently capital can move through many African markets," Kirui told Bizcommunity. Gable said, "Secondary‑market liquidity is still thin in many countries, foreign‑exchange access can still be constrained by weak interbank markets and convertibility pressures, and legal certainty is not yet uniform."
How it came about
The analysis links the recent reforms to the difficult global financial environment after the pandemic, when sovereign distress and reduced access to international capital exposed the limits of reliance on external funding. It argues that these pressures motivated African countries to deepen local markets to absorb financing domestically and manage currency and interest‑rate risk.
Key facts
- Absa CIB’s Anthony Kirui says African markets have strengthened their capacity to attract investment. (bizcommunity.com)
- Jeff Gable notes secondary‑market liquidity remains thin in many African jurisdictions. (bizcommunity.com)
- Legal certainty varies across the continent, with several markets still lacking full net‑ting frameworks. (bizcommunity.com)
- The Africa Financial Markets Index (Afmi) shows measurable progress since its earliest editions. (bizcommunity.com)
- Post‑pandemic sovereign distress highlighted the need for deeper domestic capital markets. (bizcommunity.com)
Sources
- [1] bizcommunity.com — originally reported as “Africa’s financial markets: A decade of progress, but can the momentum last?”
