In 2024, African stock markets delivered remarkable performances, with Ghana’s benchmark stock index leading the charge, delivering the highest returns on the continent. Bolstered by economic reforms and investor optimism, several countries are set to sustain this positive momentum into 2025. Here’s a closer look at the top-performing African stock indices and their outlook for the year ahead.
According to Bloomberg, the five best-performing African stock indices are expected to continue their upward trajectory in 2025:
1. Ghana’s GSE Composite Index – 56%
Ghana’s stock index led Africa with an impressive 56% return in 2024, marking its strongest performance since 2013. This surge was driven by a $3 billion IMF bailout and an average GDP growth of 6.3%. With investor optimism further fueled by President John Mahama’s focus on economic stability and fiscal consolidation, analysts predict a 45% gain for 2025, supported by a strengthening cedi currency and continued economic progress.
2. Zambia’s Lusaka All-Share Index – 44.1%
Zambia’s index came in second, with a 44.1% gain in 2024, as rising copper prices and ongoing economic reforms spurred investor interest. The country’s emphasis on debt restructuring and infrastructure development has garnered international attention, positioning Zambia to maintain its positive performance in 2025. With global demand for copper and other critical minerals rising, the outlook for Zambia’s stock market remains strong.
3. Nigeria’s NGX All-Share Index – 37.7%
Nigeria’s stock market surged 37.7% in 2024, bolstered by President Bola Tinubu’s economic reforms, including currency liberalisation and the removal of fuel subsidies. The energy sector, particularly companies like Oando Plc and Seplat Energy Plc, stood out with exceptional gains. However, inflationary pressures and the ongoing cost-of-living crisis could temper investor sentiment in 2025, potentially slowing the market’s momentum.
4. Kenya’s Nairobi All-Share Index – 33.7%
Kenya’s index rose 33.7% in 2024, driven by a recovery in the banking and agricultural sectors. Political stability, along with efforts to reduce public debt, boosted investor confidence. As technology and financial services continue to grow, Kenya is poised to remain a key investment hub in East Africa, offering potential for sustained growth in 2025.
5. Ivory Coast’s BRVM Composite Share Index – 29%
Ivory Coast’s BRVM index saw a 29% increase in 2024, supported by strong economic performance, driven by record cocoa prices and new oil and mining projects. The IMF’s $3.5 billion loan has also played a crucial role in infrastructure expansion and banking sector recovery. With an anticipated GDP growth rate of 6.4% in 2025, the BRVM index is expected to continue its positive trajectory.
As these countries implement reforms and position themselves for growth, their stock markets are poised for further gains in 2025, making them key players in Africa’s economic future.
