Uganda climbs to third place in Africa financial markets ranking

KAMPALA - Uganda advanced to third place in the 2025 Absa Africa Financial Markets Index, overtaking Nigeria and cementing its position behind only South Africa and Mauritius.

The Absa Africa Financial Markets Index, now in its ninth year, measures financial market development through transparency, accessibility and openness.

Compiled with support from the United Nations Economic Commission for Africa, it covers 29 economies representing about 80% of Africa’s population and gross domestic product.

The country moved up from fourth place last year after its overall score rose to 66 from 64, a gain driven by continued reforms aimed at deepening and professionalising its financial markets. The ranking is closely watched by investors as a proxy for how easy, safe and predictable it is to deploy capital across African markets.

According to Bank of Uganda (BOU), the improvement reflects a stronger macroeconomic environment, better transparency and firmer legal standards. Uganda also adopted environmental, social and governance frameworks, an area increasingly scrutinised by global investors.

The table shows how different countries performed in the index. Uganda advanced to third place in 2025.

BOU said the market infrastructure also received a boost with the launch of TradeClear, a platform designed to support transactions under the Global Master Repurchase Agreement and International Swaps and Derivatives Association frameworks.

Authorities also adopted and endorsed the FX Global Code, tightening market conduct rules and improving price discovery.

Those steps helped lift foreign exchange liquidity, supported investor confidence and eased pressure in the spot market.

BOU says this has contributed to greater exchange rate stability and strengthened Uganda’s credibility and competitiveness as an investment destination.