In 2025, African stock markets quietly became the world's top performers. Bloomberg tracked Ghana and Zambia as the #1 and #2 best-performing markets globally in dollar terms — far outpacing the S&P 500. This report examines the top 10 African exchanges, verifies the performance claims, and outlines how African Americans can build a bridge to participate.
The claim that African stock markets are outpacing American stock markets "8 to 1" is directionally true but needs important context. Here is what the data actually shows:
In 2025, the top-performing African markets did vastly outpace the S&P 500. Per Kenyan Wall Street's year-end report, Malawi returned 247.6% vs. the S&P 500's 16.4% — a ratio of roughly 15 to 1. Ghana (79.3%), Zambia (67.9%), Nigeria (51.2%), and Kenya (51.1%) all posted returns 3–5× the US market. The "8-to-1" figure is actually conservative when comparing Malawi's headline number — and even mid-tier African exchanges beat the S&P by a factor of 3 or more.
The caveat is that these returns are in local-currency terms. In USD terms (as tracked by Bloomberg), currency depreciation narrows the gap — though Ghana and Zambia still ranked #1 and #2 globally in dollar terms. Additionally, Malawi's 248% gain was driven by an aggressive repricing of a narrow group of heavyweight counters in a thin, low-liquidity market — meaning a few trades moved the index dramatically. African markets carry significantly higher volatility, liquidity risk, and currency risk than US markets, and outsized gains in one year do not guarantee sustained performance.
Bottom line: The spirit of the claim is accurate — select African stock markets are dramatically outperforming US markets, and the growth gap is real. But the precise "8-to-1" ratio should be cited with the caveat that it reflects specific exchanges over specific periods, not a blanket annual comparison. Always factor in currency, liquidity, and governance risk when evaluating African market returns.
Ranked by market capitalization. The Johannesburg Stock Exchange (JSE) alone accounts for roughly 60% of all African equity value. Bars in gold exceed $50B in market cap.
| # | Exchange | Country | Market Cap | Listings | 2025 Return (USD) |
|---|---|---|---|---|---|
| 1 | Johannesburg Stock Exchange JSE — Dominates ~60% of Africa's equity market value | South Africa | $1.36T | 350 | 14.2% |
| 2 | Egyptian Exchange EGX — Busiest exchange by firm count | Egypt | $45B | 245 | 28.5% |
| 3 | Nigerian Exchange Group NGX — Banking, consumer goods, energy listings | Nigeria | $67B | 156 | 38.1% |
| 4 | Stock Exchange of Mauritius SEM — Financial hub & gateway to Africa | Mauritius | $12B | 98 | 12.8% |
| 5 | Nairobi Securities Exchange NSE — Ranked #2 in Africa for dollar returns (2025) | Kenya | $18B | 63 | 52% |
| 6 | Casablanca Stock Exchange BVC — North Africa's most stable market | Morocco | $72B | 76 | 19.4% |
| 7 | Ghana Stock Exchange GSE — World's #1 performing market in dollar terms (Bloomberg, 2025) | Ghana | $8B | 35 | 58.3% |
| 8 | Tunisia Stock Exchange BVMT — Financial services & manufacturing | Tunisia | $9B | 84 | 8.6% |
| 9 | Lusaka Securities Exchange LuSE — World's #2 performer — copper boom (Bloomberg, 2025) | Zambia | $6B | 21 | 55.8% |
| 10 | Bourse Régionale des Valeurs Mobilières BRVM — Regional exchange for 8 Francophone West African countries | West Africa (8 nations) | $11B | 39 | 22.7% |
Sources: OECD Africa Capital Markets Report 2025, Bloomberg, exchange annual reports. Returns are USD-denominated for 2025 where available.
A side-by-side comparison of 2025 returns in dollar terms. The vertical black line marks the S&P 500's 16.4% return — every African exchange to its right outpaced the US market. Green bars beat the S&P 500; red bars trailed it.
Sourced from The Kenyan Wall Street (kenyanwallstreet.com), Kenya's leading financial markets publication. Their January 2026 year-end report compiled final 2025 returns across all major African exchanges — revealing a continent-wide rally that dwarfed US and European markets.
| Exchange | 2025 Return | Key Driver |
|---|---|---|
| Malawi Stock Exchange (MSE) | +247.63% | Africa's #1 performer — driven by National Investment Trust (+800%) and banking sector repricing |
| Ghana Stock Exchange (GSE) | +79.27% | #2 — Bloomberg also ranked Ghana #1 globally in USD terms |
| Lusaka Securities Exchange (LuSE) | +67.86% | #3 — copper boom and currency strength |
| Nigerian Exchange Group (NGX) | +51.19% | #4 — banking, consumer goods, energy rally |
| Nairobi Securities Exchange (NSE) | +51.1% | #5 — East Africa's top market; market cap hit record KSh 3.73T |
| Egyptian Exchange (EGX) | +28.5% | #6 — currency liberalization reforms |
| Casablanca Stock Exchange (BVC) | +19.4% | North Africa's stable market with growing institutional participation |
| Johannesburg Stock Exchange (JSE) | +14.2% | Africa's largest market by value (~60% of continent's equities) |
The Malawi Stock Exchange topped African equity markets in 2025, delivering a 247.63% annual gain — more than three times the return of the continent's second-best performer. The rally was driven by an aggressive repricing of a narrow group of heavyweight counters rather than broad-based participation.
Single biggest driver — closed at MK 3,938.51 with just 2,693 shares traded on the final session. Market cap: MK 531.7Bn.
One of the exchange's largest stocks — closed at MK 11,995.63 with nominal earnings of MK 102.3Bn and 1.05% dividend yield.
Closed at MK 913.76 after rising more than 420% year on year.
Closed at MK 599.89 with market capitalization exceeding MK 4.1 trillion.
Closed at MK 3,197.86 despite light trading volumes of 6,713 shares on the final day.
Rose nearly 250% over the year to close at MK 8,728.43.
Closed at MK 977.50, more than quadrupling year on year.
High inflation and sustained pressure on the Malawi kwacha pushed domestic investors toward equities as a store of nominal value. As a result, share prices rose rapidly in kwacha terms, even as real economic growth remained constrained. Limited liquidity magnified price moves — even modest trading activity had an outsized impact on index levels.
Source: Kenyan Wall Street (kenyanwallstreet.com) — "Malawi Stock Exchange Leads African Markets With 248% Gain in 2025," January 3, 2026. Returns are in local-currency terms unless otherwise noted.
Sourced from DABA (dabafinance.com), the leading African investment intelligence platform. Their January 2026 report ranked all 16 African exchanges by market capitalization — revealing not just size, but the full picture of returns across local currency, USD, and EUR terms.
| # | Exchange | Country | Market Cap (USD) | Return (Local) | Return (USD) | Return (EUR) |
|---|---|---|---|---|---|---|
| 1 | Johannesburg Stock Exchange(JSE) | South Africa | $1.46T | +37.7% | +56.7% | +38.5% |
| 2 | Casablanca Stock Exchange(MASI) | Morocco | $114.2B | +27.6% | +41.5% | +25.2% |
| 3 | Nigerian Exchange(NGX) | Nigeria | $68.8B | +51.2% | +60.6% | +43.6% |
| 4 | Egyptian Exchange(EGX) | Egypt | $62.9B | +40.2% | +49.4% | +31.9% |
| 5 | Botswana Stock Exchange(BSE) | Botswana | $56.3B | +9.8% | +14.8% | -0.9% |
| 6 | BRVM (West African Regional Exchange)(BRVM) | 8 West African nations | $23.9B | +25.3% | +41.8% | +25.3% |
| 7 | Nairobi Securities Exchange(NSE) | Kenya | $22.8B | +51.1% | +51.5% | +34.1% |
| 8 | Malawi Stock Exchange(MSE) | Malawi | $18.7B | +247.6% | +248% | +207.5% |
| 9 | Ghana Stock Exchange(GSE) | Ghana | $16.4B | +79.3% | +149.7% | +122.2% |
| 10 | Tunis Stock Exchange(BVMT) | Tunisia | $11.8B | +35.1% | +49.2% | +31.8% |
| 11 | Uganda Securities Exchange(USE) | Uganda | $9.9B | +36.6% | +39.7% | +23.7% |
| 12 | Dar es Salaam Stock Exchange(DSE) | Tanzania | $9.8B | +29.1% | +27.5% | +13.6% |
| 13 | Stock Exchange of Mauritius(SEM) | Mauritius | $8.9B | -1.4% | +0.6% | -10.9% |
| 14 | Lusaka Securities Exchange(LuSE) | Zambia | $6.4B | +67.9% | +111.7% | +87.3% |
| 15 | Zimbabwe Stock Exchange(ZSE) | Zimbabwe | $3.5B | +27.7% | +26.8% | +12.4% |
| 16 | Rwanda Stock Exchange(RSE) | Rwanda | $3.2B | +22.5% | +17.7% | +4.8% |
Source: DABA (dabafinance.com) — "The Largest African Stock Exchanges in 2025," January 13, 2026. Market cap as of December 31, 2025. Returns shown in local currency, USD, and EUR terms.
Africa has 38 stock exchanges across 29 countries — yet for African Americans seeking to invest in the continent's growth, the path is blocked by structural, regulatory, and infrastructural barriers. The Milken Institute calls it a "$2.5 trillion opportunity US investors can't access." Here are the 10 key barriers that prevent diaspora participation in African capital markets:
Most US brokerage firms (Fidelity, Charles Schwab, Vanguard) do not offer direct trading on African exchanges. Only a handful — like Interactive Brokers — provide access, and even then, only to select markets like South Africa and Egypt. Most exchanges require a local broker, which US investors cannot easily open accounts with.
African markets are small and illiquid — many stocks trade only a few shares per day. The Milken Institute notes that even modest trading activity can move prices dramatically (as seen with Malawi's National Investment Trust, where 2,693 shares moved the index). Low liquidity means large buy/sell orders can't be filled without extreme slippage.
African currencies are volatile and prone to devaluation. While Malawi gained 248% in local currency, the kwacha's depreciation can erode gains when converting back to USD. Many countries impose capital controls — restricting how much money can be repatriated, and at what exchange rate. Nigeria, Egypt, and Zimbabwe have all experienced severe currency resets.
Many African nations restrict the flow of foreign capital in and out of the country. Investors may face limits on how much profit they can withdraw, lengthy approval processes from central banks, or requirements to hold investments for minimum periods before selling. These controls make it difficult to exit positions when needed.
Each of the 29 countries has its own securities regulator, trading rules, settlement cycles, and tax treatment. Some exchanges still settle trades manually (T+5 or longer) versus the US standard of T+1. Outdated or inconsistent regulations increase transaction costs and operational risk for foreign investors.
There is no low-cost, diversified, retail-friendly fund offering broad African exposure. US-listed Africa ETFs (like AFK) are heavily concentrated in South African mining and financial stocks, with under $100M in assets. Most so-called 'Africa funds' hold more US, European, and Australian companies than actual African ones.
Many African exchanges lack the custodial infrastructure that US investors take for granted. There is no equivalent of the DTC (Depository Trust Company) for cross-border settlement. Investors may struggle to find qualified custodians, and electronic share registration is inconsistent — some markets still use paper certificates.
Political instability, abrupt policy changes, and weak corporate governance standards deter foreign investment. Military coups (Mali, Burkina Faso, Niger), sudden nationalization threats, and limited shareholder protections mean investors face risks that don't exist in developed markets. Minority shareholder rights are often poorly enforced.
Reliable financial data is scarce. Many listed companies don't publish timely earnings reports, and analyst coverage is minimal outside of South Africa. US investors accustomed to SEC filings and real-time data face a steep information disadvantage — making informed investment decisions extremely difficult.
Investing across borders triggers complex tax obligations — withholding taxes in the African country, potential capital gains in the US, and the need for foreign tax credits. Not all African nations have tax treaties with the US, meaning investors may face double taxation. Navigating this requires specialized tax expertise most retail investors don't have.
"Unless we make capital markets more accessible, most investors will be left on the sidelines."
— British A. Robinson, Chair of Africa, Milken Institute International (November 2025)
Sources: Milken Institute ("The $2.5 Trillion Opportunity US Investors Can't Access," Nov 2025); IMF Finance & Development; FSD Africa Market Failure Analysis; ENS Africa ("Attractiveness of African Stock Markets for Foreign Investors"); UN Africa Renewal.
The root cause of every barrier above is fragmentation: 54 countries, 42 currencies, dozens of regulators, and no unified financial infrastructure. The African Continental Free Trade Area (AfCFTA) is the continental response — the largest free trade area in the world by participating countries, designed to consolidate 1.4 billion people into a single market for goods, services, investment, and capital.
The world's largest free trade area by number of participating countries
The AfCFTA is a landmark agreement uniting 1.4 billion people across 54 African nations into a single liberalized market for goods, services, investment, and movement of people and capital. It is the most ambitious integration initiative in Africa's history and a direct response to the fragmentation that has historically held back the continent's capital markets. For diaspora investors, AfCFTA's financial integration protocols represent the single most promising pathway to overcoming the structural barriers that have made pan-African investing nearly impossible for African Americans.
Eliminates tariffs on 90% of goods, liberalizes trade in services, and establishes common rules of origin — reducing friction that has historically stifled cross-border commerce.
Creates a harmonized investment environment across all State Parties — protecting foreign investors, standardizing dispute resolution, and reducing the regulatory patchwork of 54 different legal frameworks.
Eleven sections covering market access, data governance, and digital financial services — enabling cross-border digital payment, e-commerce, and fintech-driven investment platforms accessible to diaspora investors.
Facilitates movement of people, capital, and the right of establishment — a prerequisite for any pan-African financial service offering that serves diaspora investors.
Three institutional initiatives — already operational or in advanced development — are creating the technical plumbing that can dissolve the barriers above:
A cross-border financial market infrastructure launched by the African Union and Afreximbank. PAPSS enables instant payment settlement in local African currencies across participating countries — eliminating the need for USD correspondent banking and dramatically reducing the cost and time of cross-border transactions. It directly addresses the currency, settlement, and repatriation barriers.
A flagship initiative of the African Securities Exchanges Association (ASEA) and the African Development Bank (AfDB). Phase 2 will connect 15 exchanges providing access to over 2,000 securities with a combined market capitalization of $1.5 trillion — creating a unified trading interface across multiple national exchanges.
The African Securities Exchanges Association has formally partnered with the AfCFTA Secretariat to streamline cross-border securities trading. The collaboration leverages PAPSS and AELP to create the first integrated pan-African securities trading infrastructure — directly targeting the brokerage access, settlement, and custodial barriers.
The UN, IOM, and AfDB are developing diaspora bonds, investment platforms, and blended finance solutions designed to channel the $100 billion in annual African remittances away from consumption toward long-term equity investment — a direct mechanism for diaspora wealth building.
For each of the 10 barriers identified above, here is how the AfCFTA ecosystem — together with PAPSS, ASEA, AELP, and the diaspora investment frameworks — can redress them and create a viable pathway for African American participation in African capital markets:
The African Exchanges Linkage Project creates a single cross-border trading interface connecting 15 exchanges. Combined with PAPSS for settlement, a US-based broker could partner with an AELP-connected local broker to offer pan-African trading — no need for 29 separate local broker accounts. ASEA and AfCFTA are actively building the licensing framework to enable this.
AELP's cross-border order book aggregates liquidity across 2,000+ securities from 15 exchanges — creating a unified marketplace where buy/sell orders from any country can match against orders from all others. Diaspora capital inflows through this channel would dramatically deepen liquidity without overwhelming any single national market.
PAPSS settles cross-border payments in local African currencies — eliminating the need to convert to USD and back. This dramatically reduces FX conversion costs and currency risk. For USD-denominated diaspora capital, PAPSS provides a transparent, regulated conversion mechanism with real-time local rates instead of black-market or punitive official rates.
The Phase II Investment Protocol creates harmonized rules protecting foreign investors and standardizing capital repatriation across all State Parties. Countries that ratify it commit to allowing investors to repatriate profits, dividends, and proceeds — backed by the dispute resolution mechanism. This replaces 29 different, often opaque, repatriation regimes.
AfCFTA's protocols establish common standards for securities regulation, settlement cycles, and investor protection across participating states. ASEA is working toward T+2 or T+1 settlement harmonization. A single cross-border licensing passport (modeled on the EU MiFID framework) would let a diaspora investor use one regulated intermediary across all markets.
AfCFTA's unified market makes a genuinely diversified Africa ETF possible — one holding equities across 15+ exchanges in multiple sectors and countries, not concentrated in South Africa. The Milken Institute and IFC are training capital market scholars to design exactly these products. Diaspora-focused funds could capture the $100B annual remittance flow as investment capital.
AELP and ASEA are working to link national Central Securities Depositories across Africa — creating a cross-border custodial network similar to Europe's. PAPSS provides the settlement rail. Together they eliminate the paper-certificate and manual-registration problems and provide the custodial infrastructure diaspora investors require.
AfCFTA includes a binding dispute settlement body — modeled on the WTO system — that gives investors a formal, treaty-backed channel to challenge expropriation, contract violations, or discriminatory treatment. The Investment Protocol adds investor-state dispute settlement (ISDS) provisions. This replaces ad hoc national courts that often fail foreign investors.
AfCFTA's Digital Trade Protocol covers data governance and cross-border data flows — creating the legal basis for a pan-African financial data platform. ASEA can standardize disclosure requirements across linked exchanges, enabling a single source of real-time earnings, filings, and pricing — eliminating the information disadvantage US investors face today.
AfCFTA's investment and free-movement protocols create the basis for harmonized tax treatment of cross-border investment income. The AfDB, UN, and IOM are developing diaspora investment toolkits that include standardized tax frameworks. African governments can offer diaspora-specific tax incentives (e.g., reduced withholding) to attract investment from citizens abroad — Ethiopia and Nigeria have already piloted diaspora bonds with preferential terms.
"The collaboration between ASEA and the AfCFTA Secretariat leverages PAPSS and the African Exchanges Linkage Project to create the first integrated pan-African securities trading infrastructure."
— African Securities Exchanges Association (ASEA) & AfCFTA Secretariat Partnership
Sources: African Union AfCFTA Secretariat; US International Trade Administration (AfCFTA Investment Protocol, Digital Trade Protocol); Pan-African Payment & Settlement System (PAPSS); African Securities Exchanges Association (ASEA) & African Exchanges Linkage Project (AELP); World Economic Forum; UN Office of the Special Adviser on Africa; International Organization for Migration (Diaspora Investment Toolkit); Milken Institute.
Africa is home to 1.4 billion people — the world's youngest population — with a combined GDP exceeding $3 trillion. Yet its equity markets remain dramatically underdeveloped: just 1,141 listed companies across the entire continent, representing only 5% of global listings. This is not weakness — it is frontier opportunity.
The 2025 rally was driven by three forces: structural reforms (Egypt's currency liberalization, Nigeria's market modernization), a commodity supercycle (Zambia's copper boom, Ghana's gold and oil), and a weakening dollar that amplified local-currency gains for dollar-based investors. Bloomberg confirmed that African exchanges dominated the global top-20 performance rankings.
But the story is bigger than one year. Africa's capital markets are in the early innings of a multi-decade growth curve. As the African Continental Free Trade Area (AfCFTA) — the world's largest free trade zone by membership — takes hold, capital formation, cross-border listings, and institutional investment will compound. For diaspora investors, the window to enter at ground-floor valuations is now.
Every year, African Americans and the broader diaspora send an estimated $100 billion+ in remittances to Africa and the Caribbean. This money feeds families, pays school fees, and sustains communities — but it builds no equity. It leaves this country as a gift and arrives as consumption. What if even a fraction of that flowed into ownership?
This money sustains families but rarely builds generational wealth. Directing even a fraction into equity investments transforms remittances into ownership.
Ghana (58%), Zambia (56%), and Nairobi (52%) vastly outperformed the S&P 500's 16% — but the '8-to-1' figure needs context (see below).
Just 1/3 of Africa's GDP is listed — meaning enormous untapped growth as capital markets deepen and mature.
Only 5% of global listings — a frontier market with compounding upside as the continent's 1.4B population urbanizes.
The transformation is simple in concept but revolutionary in impact: shift a portion of the $100 billion in annual remittances from consumption transfers to equity investments. Instead of sending money that is spent and gone, African Americans can invest in the very companies, infrastructure, and economies that define the continent's future — and own a stake in that growth.
This is how the racial wealth gap gets closed on both sides of the Atlantic simultaneously. African American capital compounds in high-growth African markets, while African communities gain patient, committed investment partners rather than extractive foreign capital. It is the transatlantic wealth bridge — and it starts with education, access, and intent.
How African Americans can practically build a financial bridge from the US to African stock markets — from first exposure to collective investment vehicles.
Understand African capital markets — the exchanges, sectors, and growth stories driving the continent's rise. Start with index funds and ETFs that provide broad African exposure.
Use brokers offering African market access (e.g., Easy Equities, Interactive Brokers, or local exchange-partner platforms). Many exchanges now offer retail-friendly digital onboarding.
Nigeria, Kenya, and Ethiopia have issued diaspora bonds specifically for their overseas communities. African ETFs and frontier-market funds offer diversified, lower-risk entry points.
Companies like MTN, Naspers/Prosus, Safaricom, and Dangote Cement operate across multiple African nations. Dual listings on JSE, LSE, or NYSE make them accessible from US accounts.
For accredited investors, African-focused PE and VC funds (fintech, agritech, renewable energy) offer high-growth exposure. Many accept US-based limited partners.
Pool capital with family, faith communities, and professional networks. Collective investment vehicles reduce individual risk and amplify community wealth-building.
African frontier markets carry elevated risks including currency volatility, lower liquidity, political instability, and less mature regulatory frameworks. Past performance does not guarantee future results. This research is for informational purposes and does not constitute financial advice. Always consult a licensed financial advisor and conduct thorough due diligence before investing in any international market.