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Business African Economic Outlook: Nigeria, Egypt, South Africa Dominate Africa’s Equity Markets — AfDB - INDEPENDENT
ABUJA – The African Development Bank (AfDB) has stated that the Africa’s equity market landscape had expanded significantly over the past two decades, with Nigeria, Egypt, Morocco, and South Africa continue to dominate the markets.
According to the AfDB 2026 African Economic Outlook, market capitalisation rose nearly six-fold to 1.2 trillion dollars in 2024, representing about 40 per cent of Africa’s Gross Domestic Product (GDP).
Market activities, according to the report, remain heavily concentrated in a few economies, including Nigeria, Egypt, Morocco, and South Africa.
The report noted that Africa remained one of the world’s fastest-growing regions, recording average real GDP growth of 3.8 per cent annually over the past two decades.
In spite the growth, it said the continent continued to face a development financing gap estimated at more than 1.3 trillion dollars yearly.
The report attributed the financing gap partly to weak domestic resource mobilisation and fragmented financial systems.
It also identified declining Foreign Direct Investment, geopolitical tensions, and low external financial flows as major challenges.
According to the report, Africa’s revenue-to-GDP ratio declined to 16.2 per cent in 2024 from between 23 and 30 per cent in the 2000s.
The report linked the decline to weak tax compliance, narrow tax bases, exemptions, and limited taxpayer coverage.
It further stated that domestic credit to Africa’s private sector remained low compared with other developing regions.
The report urged African countries to strengthen financial systems and mobilise development finance at scale to support economic transformation.
It also recommended reforms to consolidate Africa’s financial architecture amid growing global fragmentation.
In a related development, the AfDB, says Morocco has overtaken South Africa as Africa’s leading industrial economy.
The AfDB said this while inaugurating the 2025 Africa Industrialisation Index in Brazzaville.
This was on the sidelines of its annual meetings alongside the inauguration of the Africa Industrial Investment Barometer report.
According to the report, Morocco achieved the feat through sustained industrial upgrading, export diversification and strong industrial policies.
The report, however, stated that South Africa remained a major industrial powerhouse despite declining competitiveness.
