Uganda Secures Third Spot in Absa Africa Financial Markets Index

Updated by Faith Barbara N Ruhinda at 1711 EAT on Tuesday 27 January 2026

Uganda Climbs to Third Place in Absa Africa Financial Markets Index 2025
Uganda has surged to third place in the 2025 Absa Africa Financial Markets Index, reflecting significant progress in its financial sector.

The index, which evaluates financial market development across 23 African countries, highlights economies that provide the most supportive environments for efficient and effective markets.

According to the latest report, Uganda’s overall score increased from 64 to 66 points, positioning it just behind South Africa, which leads with 86 points, and Mauritius with 76 points.

Uganda’s rise in the Absa Africa Financial Markets Index reflects steady progress over the years, moving from 10th position in 2018, to fifth in 2021, fourth in 2022, and now third in 2025.

The index evaluates countries across several criteria, including market depth, access to foreign exchange, transparency, tax and regulatory frameworks, local investor capacity, macroeconomic conditions, and the enforceability of financial contracts, collateral positions, and insolvency frameworks.

In 2025, Uganda excelled in macroeconomic environment and market transparency, scoring 87 points—second only to Botswana, which leads the continent. The country also outperformed South Africa and Mauritius, which scored 78 and 74 points respectively. Analysts attribute Uganda’s strong performance to falling inflation and improvements in the non-performing loans ratio over the past year.

Uganda Excels in Absa Africa Financial Markets Index Despite Challenges
Uganda has made strong gains in the 2025 Absa Africa Financial Markets Index, although performance varies across different market segments.

In market depth, Uganda scored 46 points, compared with South Africa, which led the pack with a perfect 100, and Morocco with 63. For access to foreign exchange, Uganda recorded 67 points, 20 points behind leader South Africa.

In market transparency, tax, and regulatory environment, Mauritius topped the ranking with 95 points, followed by South Africa at 91, while Uganda scored 76.

The report highlights ongoing efforts to strengthen Uganda’s financial infrastructure. Survey respondents noted the implementation of, or plans for, upgrades to central securities depositories aimed at enhancing settlement efficiency and market liquidity. “Authorities in Uganda and Zambia are working with Frontclear to develop their domestic interbank and money markets,” the report states.

In legal standards and enforceability, Uganda remained in fifth place with 85 points, below Mauritius and South Africa, each scoring 100. The report also noted the launch of Tradeclear in June 2024, which allows repo transactions under the local GMRA and various derivatives under standardized ISDA contracts to be quoted on the platform and become eligible for the Frontclear guarantee. Additionally, the Bank of Uganda is drafting the Uganda Netting of Financial Agreements Bill, which, once completed, is expected to yield a clean legal opinion from ISDA.

However, Uganda lagged in pension fund development, scoring just 15 points and ranking 19th, well behind leaders Namibia (100) and South Africa (66).

Speaking at the report’s launch at Kampala Sheraton Hotel, Ramathan Ggoobi, Permanent Secretary of the Ministry of Finance and Secretary to the Treasury, lauded Uganda’s overall performance, attributing it to deliberate government reforms and prudent macroeconomic management.

“We are growing in an election year, which is unusual. Uganda is ranked among the fastest-growing economies globally and will continue this trajectory in the medium term. This performance reflects sustained reforms, expansion of nominal GDP, rising income per capita, and fully controlled inflation,” Ggoobi said.

He also praised the Ugandan shilling as one of the most stable currencies in the region, noting that the country’s exports have reached $13.4 billion, while foreign direct investment, tourism receipts, and remittances have continued to grow steadily.

Ggoobi emphasized that to further improve Uganda’s ranking in the index and deepen financial markets, the government is committed to rebuilding capital markets that provide long-term debt and equity financing for SMEs, attract venture capital that accepts higher risks with less collateral, build local investor capacity, strengthen corporate governance, and further capitalize the Uganda Development Bank to meet the demand for long-term finance.- credit to Nile Post.

Invest or Donate towards HICGI New Agency Global Media Establishment – Watch video here