Africa’s financial markets remain significantly underdeveloped compared with the continent’s economic potential, according to a new report from the Organisation for Economic Co-operation and Development (OECD). Published on 6 November 2026, the Africa Capital Markets Report 2026 warns that limited access to corporate bonds, concentrated stock markets and dependence on foreign financing could restrict economic growth, infrastructure development and private-sector investment across the continent.
Corporate debt markets remain too small
According to the OECD, Africa’s outstanding market-based corporate debt reached approximately $211 billion at the end of 2025, a relatively modest amount considering the continent’s population and investment requirements.
Corporate bonds accounted for just $35 billion, approximately 44% below their inflation-adjusted peak in 2015.
Only around 20 corporate bonds were issued during 2025, with financial institutions accounting for much of the activity.
Six African countries represented approximately 80% of outstanding corporate debt, illustrating the uneven development of capital markets across the continent.
Foreign currency exposure increases financial risks
A significant challenge is the continued dependence on foreign-currency financing.
Only 17% of corporate bond issuance in 2025 was denominated in local currencies, leaving borrowers exposed to exchange-rate fluctuations.
When African currencies depreciate against the dollar or euro, debt repayments can become substantially more expensive.
The OECD argues that deeper domestic capital markets could reduce these risks while allowing pension funds, insurance companies and institutional investors to finance local businesses.
Stock markets show growth but remain concentrated
African equity markets recorded a 49% increase in value during 2025, demonstrating continued investor interest despite challenging global financial conditions.
However, four countries accounted for approximately 88% of the continent’s total stock market capitalisation.
This concentration limits financing opportunities for businesses operating in smaller economies and reduces the availability of investment alternatives.
Development financing faces growing pressure
The report also highlights declining international development assistance.
OECD aid to sub-Saharan Africa has fallen by more than 25%, increasing the importance of domestic savings and private investment.
Improving financial regulation, strengthening legal institutions and encouraging corporate transparency could help attract additional capital.
A critical opportunity for African economies
Africa requires substantial investment in energy, transportation, telecommunications, housing and industrial development.
Expanding corporate bond markets and encouraging more companies to list on local exchanges could help bridge the financing gap.
For African governments, the challenge is creating stable financial systems capable of attracting long-term investment while reducing dependence on external lenders.
The OECD’s findings suggest that Africa’s economic potential is substantial, but unlocking it will require stronger domestic capital markets, greater financial integration and improved access to affordable business financing.
NewsHub Finance | African Finance | 8 November 2026
Africa's financial markets remain significantly underdeveloped compared with the continent's economic potential, according to a new report from the Organisation for Economic Co-operation and Development (OECD). Published on 6 November 2026, the Africa Capital Markets Report 2026 warns that limited access to corporate bonds, concentrated stock markets and dependence on foreign financing could restrict economic growth, infrastructure development and private-sector investment across the continent.
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