Uganda overtakes peers in 2025 Africa financial markets ranking

KAMPALA, Uganda — Uganda has climbed to third place in the 2025 Absa Africa Financial Markets Index, rising from fourth last year as the nation makes gains in macroeconomic stability and market transparency.

The index, which evaluates 28 countries, awarded Uganda 66 points. South Africa led the rankings with 86 points, followed by Mauritius with 76.

Uganda’s performance was bolstered by a score of 87 in the macroeconomic environment category, fueled by declining inflation and a reduction in nonperforming loans. The country also scored 76 in market transparency following upgrades to central securities depositories aimed at improving settlement and liquidity.

Ramathan Ggoobi, permanent secretary and secretary to the Treasury, credited the results to deliberate government reforms during an election year. He noted that exports have grown to $13.4 billion and cited the stability of the Uganda shilling as a sign of prudent management.

Speaking at the 2025 Absa AFMI and Economic Forum, Ggoobi said the next phase of growth requires rebuilding capital markets to provide long-term debt and equity financing. He also proposed the establishment of a stock exchange specifically for small and medium enterprises.

Bank of Uganda Governor Michael Atingi-Ego said the primary challenge facing the nation is capital mobilization rather than regulatory sophistication. The central bank’s strategic goals for 2027 include reaching a financial inclusion index of 75% and an e-payments index of 46%.

Atingi-Ego said recent gains were supported by reforms in market infrastructure, including the deepening of money markets.

David Wandera, managing director of Absa Bank Uganda, said policy changes introduced in 2025 have strengthened investor protection. These reforms, which cover securities offerings and corporate governance, are expected to unlock domestic capital and attract international investment.