Ghana has been ranked as the seventh strongest financial market in Africa, recording 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 largely by the exceptional performance of the Ghana Stock Exchange (GSE) in 2025. The bourse recorded a historic rally, ending 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 by 79.40 per cent to 8,770.25 points, while the Financial Stock Index rose by 95.19 per cent, marking its strongest performance since 2004.

For the banking sector, Ghana recorded total deposits of GH¢325.3 billion and total assets of GH¢446.9 billion as at end-December 2025, representing growth of 17.8 per cent and 21.5 per cent 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 African 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 appeared 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 reveals sustained advancement, particularly 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, noting 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 explained 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 need for continued financial market reforms across the continent.