Ghana has secured its place as a top-tier financial hub in Africa. The country now ranks as the seventh strongest financial market on the continent. This finding comes from the latest Absa Africa Financial Markets Index report. Ghana earned an index score of 60. This performance places the nation among elite markets like South Africa and Mauritius.

The ranking highlights a significant recovery for the Ghanaian economy. Much of this success stems from the Ghana Stock Exchange. The bourse delivered a historic rally throughout 2025. It ended the year as the second-best performing stock market in Africa. Investors responded positively to post-debt restructuring efforts. Improved macroeconomic stability also played a major role in the surge. For the average investor, this rally represents more than just numbers; it signals a restoration of confidence in domestic wealth creation.

At a Glance: Africa’s Top Financial Markets (2025/26)

Rank	Country	Key Market Driver
1	South Africa	Market Depth & Liquidity
2	Mauritius	Transparency & Openness
3	Nigeria	Foreign Exchange Reforms
4	Uganda	Regulatory Modernization
5	Namibia	Institutional Capacity
6	Botswana	Macroeconomic Opportunity
7	Ghana	Stock Market Rally (GSE)

Stock Market Surge and Banking Growth

The numbers behind Ghana’s rise are substantial. The GSE Composite Index jumped by 79.40 per cent. It reached a closing point of 8,770.25. The Financial Stock Index performed even better. It rose by 95.19 per cent. This represents its strongest performance since 2004. Key listings, led by a dominant performance from MTN Ghana and a recovery in tier-one banking stocks, anchored this growth.

The banking sector also showed remarkable resilience. Total deposits reached GH¢325.3 billion by December 2025. Total assets climbed to GH¢446.9 billion. These figures represent growth of 17.8 per cent and 21.5 per cent respectively. The Absa index measures these developments based on transparency and accessibility. The growth in deposits suggests that despite past hardships, Ghanaian households are once again trusting formal institutions with their life savings.

The Cedi as a Global Outlier in Stability

Central to this financial ascent is the historic turnaround of the Ghana cedi. In 2025, the cedi emerged as Africa's best-performing currency, appreciating by over 40 per cent against the US dollar. This surge marks a dramatic reversal from previous years and has been a primary driver in reining in inflation, which eased significantly toward the end of 2025. By shoring up foreign exchange buffers through record gold export earnings and tighter monetary policy, the Bank of Ghana has restored a level of currency predictability that is now the envy of the region.

Impact of International Trade Policies

Global dynamics are shifting the landscape for African finance. The 2025 report evaluates performance against evolving United States trade policies. The return of President Donald Trump has brought elevated trade tariffs. These policies have created a backdrop of uncertainty for many emerging markets. However, Ghana’s strategic role as the host of the African Continental Free Trade Area (AfCFTA) Secretariat provides a unique buffer, allowing it to pivot toward intra-African trade as global barriers rise. This transition is critical following the late 2025 expiration of the African Growth and Opportunity Act (AGOA), forcing markets to seek self-reliance. Furthermore, a massive surge in gold export earnings—reaching $20.9 billion in 2025—has provided the fiscal "hard floor" necessary to weather these external trade shocks.

The report noted that overall outcomes appeared subdued across the region. "On a headline basis, the last year may feel like a bit of a disappointment. Just 10 of the 29 countries in the 2025 index saw their overall scores improve," the report stated. Despite this, deeper analysis shows sustained advancement in foreign exchange reforms and climate change initiatives. Analysts view these internal reforms as a necessary "armor" against the unpredictable nature of Western trade shifts.

Importance of Local Currency Stability

Currency stability remains a primary concern for regional leaders. Experts believe stable currencies insulate economies from external shocks. Ahmed Attout, Director of Financial Sector Development at the African Development Bank, emphasized this point. "Long-term local currency financing is key to economic development," he said.

Attout explained that effective financial systems help mobilize domestic resources. This allows households more investment options. It also helps businesses and governments fund long-term projects. When a business can borrow in its own currency, it avoids the "silent tax" of exchange rate fluctuations that often cripples small enterprises. This vision is increasingly supported by the Pan-African Payment and Settlement System (PAPSS), which allows Ghanaian firms to trade within the continent using the Cedi, directly reducing the demand for volatile foreign reserves.

Resilience Through Reform

Strong domestic capital markets build resilience. They protect against currency volatility and global interest rate hikes. This reinforces the need for continued financial market reform. Ghana’s position at seventh place reflects these successful efforts.

The country followed Botswana, Namibia, Nigeria, Uganda, Mauritius and South Africa in the rankings. South Africa remains the strongest financial market on the continent. Ghana’s inclusion in this group signals a maturing financial ecosystem. The path forward for Ghana lies in maintaining regulatory agility to ensure that financial strength translates into tangible prosperity for its citizens. Continued focus on openness will be vital. These factors remain the cornerstone of the Absa Africa Financial Markets Index.