Uganda has climbed to third position in the Absa Africa Financial Markets Index (AFMI), up from fourth place in 2024, marking one of the country’s strongest performances since the index was launched.
The 2025 AFMI report, released on Tuesday, assessed 28 African countries across key indicators including market depth, access to foreign exchange, market transparency, tax and regulatory environment, capacity of local investors, macroeconomic opportunity, and the enforceability of financial contracts, collateral positions, and insolvency frameworks.
Uganda scored 66 points, improving from 64 points in 2024, to rank behind only South Africa (86 points) and Mauritius (76 points).
The country’s strongest performance was recorded in the macroeconomic environment, where it scored an impressive 87 points, supported by falling inflation and improved management of non-performing loans. The report described this as a major boost to Uganda’s economic outlook.
Uganda also performed strongly in market transparency, scoring 76 points, largely due to government-led upgrades to central securities depositories, which have improved settlement efficiency and market liquidity. In this category, Mauritius led with 95 points, followed by South Africa with 91.
In terms of legal standards, Uganda ranked fifth with 85 points, reflecting ongoing efforts to strengthen the legal and regulatory framework governing financial markets.
Speaking at the 2025 Absa AFMI and Economic Forum, the Permanent Secretary and Secretary to the Treasury, Ramathan Ggoobi, attributed Uganda’s improved ranking to deliberate and sustained government reforms.
“We are re-growing in an election year, which is not easy,” Ggoobi said.
“This performance shows that prudent macroeconomic management and sustained reforms are paying off.”
He highlighted the stability of the Uganda shilling, growth in exports—now estimated at USD 13.4 billion—and rising foreign investment as key contributors to the improved ranking.
Ggoobi emphasized that continued growth must be matched by deeper and more inclusive capital markets. He outlined priorities including rebuilding capital markets to provide long-term debt and equity financing, attracting venture capital for higher-risk innovation with lower collateral requirements, and exploring the establishment of an SME-focused stock exchange to support businesses not yet eligible for main-board listing.
Bank of Uganda Governor Michael Atingi-Ego said the country’s biggest challenge is no longer regulation but capital mobilisation and market depth.
“Our biggest constraint today is not regulatory sophistication; it is capital mobilisation and market depth,” he noted.
Atingi-Ego explained that the Central Bank’s 2022–2027 strategic targets include achieving a financial inclusion index of 75 percent, an e-payments index of 46 percent, and continued advancement in financial market development, with some targets already exceeded.
He added that recent gains have been supported by reforms in core market infrastructure, including the deepening of REPO and money markets, and stressed that the progress reflects collective efforts across government, regulators, Parliament, and market participants.
The Managing Director of Absa Bank Uganda, David Wandera, said Uganda’s progress has been driven by regulatory and policy reforms that enhance transparency and investor protection.
He cited capital markets reforms introduced in 2025, covering collective investment schemes, securities offerings, licensing and approvals, and corporate governance, as critical to deepening markets, unlocking
