Stock markets across Africa are experiencing a remarkable surge, attracting global investors eager for returns amidst a backdrop of tariff disputes and increasing geopolitical tensions. This year, Ghana has emerged as the top-performing stock market worldwide in dollar terms, according to Bloomberg’s latest tracking.
Following Ghana, Zambia has secured second place, while Nigeria, Kenya, and South Africa have made notable appearances, ranking 14th, 15th, and 21st respectively. These impressive rankings highlight a significant shift in investor interest towards African markets.
The substantial growth in these markets can be attributed to various reforms, interest rate reductions, and a decline in the value of the dollar. An expert in macro-strategy noted that the dollar’s recent fall is linked to concerns over the impact of US tariffs on trade partners, which could stifle growth and diminish global demand. This situation has led to increased expectations for lower interest rates in the US.
All five highlighted African nations are actively pursuing reforms aimed at reducing budget deficits and stimulating economic growth. With the exception of Zambia, these countries have also begun to lower interest rates as inflation rates decrease. This proactive approach has resulted in more appealing market valuations.
Additionally, Ghana, Zambia, and South Africa are reaping the benefits of a surge in commodity prices. Key metals such as platinum have seen an increase of nearly 75%, while copper has risen by 18%. Gold prices have also climbed by 48%, driven by supply constraints and a growing interest in safe-haven investments.