This week, Nigeria strengthened its position in continental capital markets, South Africa achieved a historic sovereign rating upgrade, private sector activity weakened in more economies, and investors continued to shuffle portfolios amid growing uncertainty.
Together, these developments underline both the opportunities and challenges facing African economies as they navigate a more volatile global environment.
Here are the stories that shaped the week
Nigeria overtakes Morocco to become Africa's second largest stock exchange
Nigeria has emerged as Africa's second largest stock exchange, Morocco was overtaken after a long rally that has turned Nigerian Exchange Limited into one of the best-performing exchanges on the continent. Data compiled by Afridigest from African markets showed that NGX was valued at $117 billion as of May 15, 2026, trailing only South Africa's Johannesburg Stock Exchange, which remains the continent's largest bourse with a capitalization of nearly $1.5 trillion.
why it matters: This milestone reflects growing investor confidence in Nigeria's reform agenda and deepening domestic participation in the equity market. It also strengthens the country's position as one of Africa's most important capital-markets destinations ahead of major listings, including the planned Dangote Refinery IPO.
South Africa achieves first Fitch upgrade in nearly 21 years
South Africa has received its first sovereign credit-rating upgrade from Fitch Ratings in almost 21 years, a significant change. Africa's largest economy After years of decline and fiscal concerns. Fitch raised the country's long-term foreign and local currency issuer default ratings to BB from BB while maintaining a stable outlook, citing improving fiscal metrics and ongoing structural reforms.
why it matters: The rating upgrade could reduce borrowing costs, improve investor sentiment and attract additional capital inflows into South Africa. The move also signals growing confidence in the country's reform program and economic outlook.
Africa's rich increase their wealth as real estate boost
Africa's ultra-wealthy investors are increasing their investments in real estate as they seek protection from market volatility and new sources of long-term income. According to a report by Standard Bank Group. The study found that demand for residential, commercial and mixed-use developments is increasing among investors with assets over $50 million, as property is increasingly becoming a core component of wealth-preservation strategies.
why it matters: This trend could increase investment in African real estate markets, supporting construction activity, urban growth and job creation, while reshaping the way wealthy Africans allocate capital.
Africa's trade recovery has faltered as more economies hit contraction
Africa's private sector recovery weakened further in May, with five of the eight major economies Business contractions are being recorded, up from three in April and two in March. Purchasing Managers' Index (PMI) data analyzed by BusinessDay points to rising pressures from rising fuel costs, inflation, weak demand and rising geopolitical uncertainty.
why it matters: The decline suggests economic growth may be slowing in many African markets. If continuing, weak business activity could hit employment, investment and government revenue collections in the coming months.
Nigeria's Joint Capital expands to East Africa with Rwanda, Ethiopia licenses
United Capital has deepened its pan-African expansion strategy after securing investment banking licenses in Rwanda and Ethiopia, making it the first foreign institution authorized to provide investment banking services in Ethiopia. The approval allows the group to provide financial advisory, securities brokerage and portfolio management services in two of Africa's fastest growing markets.
why it matters: The move underlines the growing interest of investors in East Africa and highlights the increasing integration of African capital markets. It also positions United Capital to benefit from the development of Ethiopia's emerging financial sector and Rwanda's expanding investment ecosystem.
chart of the week
