Namibia retains top-five financial markets ranking in Africa

Namibia has retained its position among Africa’s top five financial markets, according to the Absa Africa Financial Markets Index (AFMI) 2025. The AFMI measures the depth, transparency, and resilience of financial systems across 29 African economies. The latest report, compiled by the Absa Group in partnership with the Official Monetary and Financial Institutions Forum, shows Namibia scoring 64 out of 100, up from 62 in 2024. The improvement reflects reforms that have strengthened market infrastructure, transparency, and macroeconomic stability, despite challenging global financial conditions. A key milestone highlighted in the report is the Bank of Namibia’s establishment of a national central securities depository – a reform that consolidated and automated securities settlement, improving market efficiency and boosting investor confidence. The initiative helped Namibia climb nine points in the Market Depth category, placing it among Africa’s top 10 for the first time. “Some countries have implemented reforms to modernise their infrastructure and improve their market operations, with Namibia introducing a central securities depository this year,” the report noted. Namibia also continues to lead the continent in pension fund development, maintaining a perfect score of 100 for the third consecutive year. The report credits the country’s well-capitalised pension sector as a vital source of long-term funding for domestic investment. In addition, Namibia achieved one of the highest scores in macroeconomic management and transparency, at 79 out of 100, supported by prudent fiscal policies and the consistent publication of economic data. The report awards Namibia full marks for financial information transparency, underscoring its commitment to openness and accountability. “Namibia and Ethiopia reached full scores on financial information transparency after publishing detailed data on sectoral composition and ownership of assets,” the report states. However, the index identifies persistent weaknesses in market liquidity and legal enforceability, both of which remain critical to attracting larger volumes of foreign investment. Namibia’s score for legal standards and enforceability remained at 40, suggesting room for improvement in contract enforcement and investor protection. The report concludes that with continued efforts to diversify financial products – particularly through green and environmental, social and governance-linked instruments – and to deepen regional financial integration, Namibia is well-positioned to consolidate its role as a leading financial hub in southern Africa.