Botswana improves rankings in 2025 Absa index
Opelo Rakereng | Wednesday February 18, 2026 09:13
According to Absa Botswana, the index is produced with support from the United Nations Economic Commission for Africa and evaluates 29 African countries. During its production, researchers use a combination of quantitative data and survey insights from more than 50 institutions, including central banks, stock exchanges, regulators, market participants and international development bodies. In Botswana, the index was launched recently where captain of the industry were appraised of the progress the country has made since the previous edition. Absa Bank Botswana Managing Director, Keabetswe Pheko-Moshagane, stated that the performance of the diamond-rich nation reflects both strength and opportunity.
She highlighted that Botswana ranks first in Africa for macroeconomic environment and transparency, supported by strong external debt discipline and consistent data transparency. The Index also found that Botswana continues to hold the highest pension fund assets per working-age person in Africa, underscoring the strength of the country’s long term savings institutions. “These strengths continue to anchor Botswana’s reputation for stability, while the Index also highlights opportunities to further deepen liquidity, broaden the product set, enhance legal enforceability and accelerate innovation,” Pheko-Moshagane added.
Additionally, the MD stated that the AFMI was not a mere ranking tool but a diagnostic and signalling instrument that speaks directly to investor confidence, cost of capital and fiscal resilience. For nine years, the Index has served as a trusted benchmark for measuring market attributes that determine whether a country can finance deficits efficiently, credibly and at reasonable cost. Covering 29 economies that account for approximately 80% of Africa’s GDP, the AFMI enables policymakers, regulators and investors to assess areas of strength and identify reforms needed to unlock long term market development.
The 2025 Index highlights a continent navigating global uncertainty with determination and measurable progress. Reform minded countries have demonstrated greater resilience, particularly through foreign exchange market reforms and improved transparency. The report also notes that more economies have introduced new financial instruments, including green and sustainability-linked bonds, expanding investor choice and deepening domestic capital markets. New data has shown that climate aligned finance continues to gain momentum, with an increasing number of countries integrating climate stress testing and sustainability frameworks into their financial systems.
Although the survey was undertaken amid global volatility, GDP growth expectations improved in 22 countries, underscoring Africa’s adaptability and resilience in an uncertain global environment. Pheko-Moshagane said this reinforces the central role of financial markets in driving the continent’s future competitiveness and economic transformation. Meanwhile, chairperson of Absa Bank Botswana Cosmas Moapare, has described the AFMI as both a reminder of progress made and a valuable measurement tool for advancement, while also serving as a catalyst for future dialogue and partnerships.
“What has been shared affirms that Africa is on the right track toward sustainable development,” he told the launch gathering. “However, there are important caveats along the way that remind us that the story is still unfolding, and that significant work remains in developing financial markets to ensure that the continent fully unlocks its economic potential.” Moapare added that policymakers, regulators, financial institutions and investors must continue working collaboratively to strengthen Africa’s financial markets and sustain the continent’s development trajectory.