Dr. Mohamed H’MIDOUCHE
Between international visibility and real market transformation
In New York, at Nasdaq, the Regional Stock Exchange (BRVM) embodies a financially ambitious Africa. But behind this new visibility, a decisive question arises: are African markets transforming or simply better valuing themselves?
The BRVM Investment Days held at Nasdaq on April 21, 2026 marked an important step in the international projection of African markets. The continent is no longer satisfied with being a potential investment destination; it now structures a discourse, highlights its performances, and seeks to sustainably capture the attention of global investors. This evolution reflects a rise in institutional maturity and a willingness to integrate into international financial flows. It is a positive signal, but alone cannot be equated with structural transformation.
Performances that raise questions
Recent data shows a significant growth in African stock markets. In a global environment characterized by a near-stagnation of developed markets, African performances appear remarkable. Ghana is up by nearly 50%, Nigeria exceeds 30%, while the BRVM, Egypt, and Tunisia are in the range of 15% to 18%. At first glance, these results seem to indicate a shift in favor of African markets.
The table revealing the reality of markets
Source : data consolidated and analyzed by the author based on major international indices (MSCI), African and international stock exchanges, as well as databases from the World Federation of Exchanges, covering the period from December 31, 2025 to April 9, 2026.
This table requires a change in perspective. It shows that African outperformance is part of a global context marked by hesitation in major markets. While American indices stagnate or decline and Europe evolves in a contrasting manner, some African stock exchanges appear as areas of rapid revaluation.
An analyst’s reading: beyond performance
As a financial market analyst, I believe that these performances should be interpreted with caution. They reflect less structural superiority than a catch-up phase. African markets still operate in environments characterized by limited liquidity, reduced depth, and a relatively narrow base of institutional investors. In these conditions, even modest flows can lead to significant index variations.
The observed performance reflects both increasing attractiveness and a structural sensitivity to capital movements. It attracts attention, but alone cannot attest to a profound transformation of the markets.
BRVM, a sign of a developing dynamic
In this landscape, the BRVM occupies a unique position. Its 17.70% growth confirms its strengthening and increasing attractiveness.
As highlighted by the Director-General of BRVM, Dr. Félix Edoh Kossi AMENOUNVE, during the BRVM Investment Days 2026 at Nasdaq, this dynamic is based on a dual reality: tangible growth, with a capitalization exceeding $40 billion and a progression of over 99% in five years, and an ambition for transformation based on financial innovation, mobilization of domestic savings, and the progressive integration of SMEs.
This ambition is real, but it remains conditioned by a decisive factor: the market’s ability to gain depth and liquidity.
The paradox of African capital
One of the most striking lessons of this analysis lies in the persistent contradiction of African financial flows. Even as the continent seeks to attract international capital, a significant portion of its own resources continues to be invested abroad, especially in safe assets such as developed economies’ Treasury bonds.
This situation reflects a form of structural paradox in which Southern economies contribute to financing Northern economies. In this context, the gradual reorientation of investments from sovereign funds and major African institutional investors towards local markets emerges as a decisive lever. It is an essential condition to strengthen liquidity, stabilize markets, and anchor their development in an endogenous logic.
The decisive role of African companies
The transformation of markets does not depend solely on investors. It also relies on the ability of African companies to mobilize public savings. However, the use of financial markets remains limited, especially for small and medium-sized enterprises.
The development of IPOs, the expansion of the base of listed companies, and the improvement of governance standards are essential conditions to strengthen the supply of securities and support market dynamics. It is rightly that BRVM continues its advocacy and awareness-raising to increase privatizations through the Stock Exchange, voluntary admissions, and exits of Private Equity funds through the market. BRVM also launched its Code of Governance for listed companies since 2022.
Without increased participation from companies, the rise of the markets will remain incomplete.
Persistent fragmentation
African stock markets fundamentally remain a fragmented space. Behind the contrasting performances observed in some places, the comparative table reveals a deeper reality: that of a continent where financial markets still operate in silos, according to largely national or sub-regional logics, with limited integration levels.
This fragmentation reflects significant structural disparities in terms of capitalization, liquidity, and market sophistication. It is also expressed in the composition of financial places, often dominated by a limited number of companies, thus limiting their capacity to absorb capital.
The still insufficient interconnection between different African stock exchanges limits the formation of a true continental market. It hinders intra-African flows and prevents the emergence of a critical mass capable of attracting long-term institutional investors.
In this context, fragmentation becomes both a vulnerability factor and a field of opportunities. Its gradual reduction is one of the most powerful levers for the financial transformation of the continent. Initiatives such as the African Exchanges Linkage Project (AELP) and the West African Capital Markets Integration (WACMI), which are respectively projects for interconnecting exchanges at the continental level and in West Africa, should be encouraged and further supported by public authorities.
Conclusion – From performance to sovereignty
The comparative table reading leaves no room for ambiguity. Africa is now visible. It is performing in some places. It attracts investors’ attention and gradually integrates into global capital market dynamics. But this visibility, however necessary, is only a step.
The real challenge lies in the ability of African markets to move beyond performance logic to enter the transformation logic. Because a market that progresses without structuring remains exposed; a market that attracts capital without retaining it remains dependent; a market that values without financing the real economy does not create sovereignty.
Financial sovereignty is not decreed. It is built gradually, in the depth of markets, mobilization of domestic savings, and alignment of resources with the continent’s development priorities.
👉 Africa now has the necessary foundations to cross this threshold. The question is no longer whether it can succeed, but how quickly it will transform this dynamic into a true endogenous financial project.
Dr. Mohamed H’MIDOUCHE
CEO & Managing Director, Inter Africa Capital Group
Former Regional Resident Representative, African Development Bank Group
