African equity markets closed the week of February 20 broadly in positive territory, with several exchanges posting returns that are outperforming developed markets by a wide margin. Tanzania leads the continent with 40.65% gains year-to-date in local currency, while Ghana surged 15.06% in a single week, bringing its year-to-date total to 34.61%. Nigeria posted a weekly gain of 6.95% and is now up 25.30% year-to-date in local terms and 34.39% in US dollar terms, driven by sustained investor appetite despite ongoing macroeconomic adjustments.
Key points
- Tanzania leads all African markets year-to-date at 40.65% in local currency
- Ghana surged 15.06% in a single week, bringing year-to-date gains to 34.61%
- Nigeria is up 25.30% year-to-date locally and 34.39% in US dollar terms
- Uganda advanced 4.32% over the week, continuing steady growth
- Nigeria’s exchange recorded its first-ever commercial paper listing with Dangote Cement’s 119.87 billion naira issuance
- Egypt’s central bank cut policy rates by 100 basis points to support financial markets
- MTN Group agreed to acquire full ownership of IHS Towers in a $2.2 billion deal
- Fitch revised Ecobank Transnational’s outlook to positive, a signal of improving pan-African banking sentiment
The Johannesburg Stock Exchange expanded its product range with new ETFs focused on Japan and Europe, alongside the launch of Amplify Investment Partners’ first actively managed ETF. Analysts note that accommodative monetary conditions in several jurisdictions, landmark corporate transactions, and ongoing capital market development are collectively underpinning the positive momentum seen since January.
Why it matters: African equity markets are no longer a frontier footnote. The combination of strong returns, improving regulatory frameworks, and institutional-grade corporate activity is making a compelling case for portfolio allocation that many global investors have historically delayed.
Source: African Markets weekly brief
