Africa's Capital Markets Underdeveloped Despite Reforms
African companies raised just $220 billion in equity over 25 years, accounting for only 1% of global equity issuance and about 0.5% of Africa's combined GDP, according to the OECD's 2025 Africa Capital Markets Report. The international body warned that despite two decades of reforms, capital markets remain too small, shallow, and concentrated to support sustainable growth. South Africa, Egypt, and Nigeria alone account for over 80% of all capital raised on the continent, leaving most exchanges illiquid and SMEs effectively shut out. This underdevelopment forces businesses and governments toward costly foreign borrowing, increasing debt vulnerabilities and hindering climate ambitions. The OECD concluded that without deeper, more inclusive markets, Africa will struggle to finance growth, manage debt sustainably, and meet climate commitments.