Top Stock Market Performers In Africa

Investors are looking ahead to what is expected to be another positive year for many of the continent’s leading markets. Here’s a look at the top performers and what we can expect in the coming year.

Ghana’s Stock Market Leads the Way

Ghana’s stock market has been the standout performer in Africa. The Ghana Stock Exchange Composite Index rose by 56% in 2024, making it the best-performing stock market on the continent. The gains were driven by the country’s $3 billion International Monetary Fund (IMF) bailout and expectations of a stable economy under the new government.

With the election of John Mahama as president, Ghana’s economic prospects look positive. Mahama has pledged to restore economic stability, which is expected to have a positive effect on investor confidence. The Ghanaian economy grew by 6.3% in the first nine months of 2024, up from 2.6% the previous year, further encouraging optimism about the country’s economic recovery.

Experts like Alex Boahen from Databank Group predict the Ghana Stock Exchange could see a 45% increase in 2025. The strong performance of Ghana’s stock market is expected to continue as investor confidence improves alongside economic growth.

Ivory Coast’s Stock Market Shows Strong Growth

Next on the list of top stock market performers in Africa is Ivory Coast. The BRVM Composite Share Index, which includes companies from eight countries in the West African Economic and Monetary Union, increased by 29% in 2024. This was the largest increase in three years for the regional stock market.

Ivory Coast’s economy is projected to grow by 6.4% in 2025, supported by high cocoa prices and new oil and mining projects from companies like Eni SpA and Montage Gold Corp. The IMF has agreed to lend $3.5 billion to Ivory Coast, boosting expectations for continued economic growth. Furthermore, banks have resumed lending in Ivory Coast and Senegal, signaling recovery in these key West African economies.

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Nigeria’s Stock Market Benefits from Economic Reforms

Nigeria, Africa’s largest economy, also saw positive growth in its stock market. The Nigerian Stock Exchange (NSE) All-Share Index gained 38% in 2024. Much of this growth was attributed to President Bola Tinubu’s economic reforms, including allowing the currency to trade freely, removing fuel subsidies, and reducing government control over tariffs.

One of the major success stories in Nigeria’s stock market last year was Oando Plc, which saw its stock price surge by six times after acquiring the subsidiary of Eni, an Italian oil and gas company. Seplat Energy Plc also saw significant gains, with its stock increasing by 147% after acquiring assets from ExxonMobil.

Despite these positive market movements, Nigeria still faces challenges, including a rising cost of living and inflation, which could dampen investor sentiment in the future. However, Nigeria’s stock market is expected to remain strong in 2025, supported by ongoing economic reforms and improving investor confidence.

Forecast for 2025: Stock Markets in Africa to Continue Growing

As we head into 2025, stock markets in Africa, particularly in Ghana, Ivory Coast, and Nigeria, are expected to build on their 2024 gains. Strong economic growth, political stability, and investor confidence are all factors contributing to the positive outlook for these markets.

The Ghana Stock Exchange, in particular, stands out as a leader, with experts predicting continued growth. Similarly, Ivory Coast’s stock market is set to benefit from economic reforms and global market trends, while Nigeria’s market remains buoyed by the government’s economic changes.

Africa’s markets have shown strong growth in 2024, and there are high expectations for 2025. With Ghana leading the way and other markets like Ivory Coast and Nigeria following closely, investors have reasons to be optimistic. These  markets will continue to play an important role in the continent’s economic recovery and growth.