As 2026 begins, several African countries remain in the global financial spotlight due to elevated debt burdens, macroeconomic fragility, and ongoing negotiations with major international lenders alongside increased scrutiny from the Financial Action Task Force (FATF).
- The FATF issued a grey list categorizing countries with strategic deficiencies in anti-money laundering and terrorism financing measures.
- Eight African countries remain under FATF’s increased monitoring in 2026, facing economic and financial challenges.
- Countries like Algeria, Angola, and Kenya experience heightened scrutiny, affecting international transactions and investments.
- Grey-listing impacts these nations’ economic capacities, influencing sovereign borrowing, trade, and foreign aid access.
As global banks, investors, and development lenders tighten compliance rules in 2026, being placed on the Financial Action Task Force (FATF) grey list has become one of the most damaging reputational and financial labels a country can carry.
The grey list formally refers to “Jurisdictions under Increased Monitoring” – countries judged to have strategic weaknesses in their systems for combating money laundering, terrorist financing, and the funding of weapons proliferation.
While grey-listed states are not blacklisted, they face higher transaction costs, tougher scrutiny from correspondent banks, delayed foreign investments, and reduced access to international capital, pressures that many African economies can least afford.
At the start of 2026, eight African countries remain under increased monitoring by the FATF.
1. Algeria
Africa’s largest gas exporter continues to struggle with weak enforcement, a cash-heavy business culture, and opaque state-owned enterprises. These factors make it difficult for regulators to fully track illicit financial flows, keeping Algeria under international scrutiny.
2. Angola
Despite years of anti-corruption reforms, Angola’s financial system remains vulnerable to money laundering, particularly around oil revenues and politically exposed persons. Grey-listing continues to raise borrowing costs for both the government and local banks.
3. Cameroon
Cameroon’s status reflects long-standing problems with customs fraud, cross-border smuggling, and weak financial supervision. As a key trade hub for Central Africa, these weaknesses carry regional implications.
4. Côte d’Ivoire
One of West Africa’s fastest-growing economies is paying a reputational price for gaps in its anti-money-laundering and counter-terrorism financing frameworks, especially given its proximity to jihadist-affected Sahel states.
5. Democratic Republic of Congo
The DRC’s vast mineral wealth continues to attract illicit financial flows. Weak banking controls, cash-based mining operations, and limited oversight of politically exposed persons keep the country on the FATF’s radar.
6. Kenya
East Africa’s financial hub faces pressure over terror-financing risks, oversight of mobile-money platforms, and cross-border transfers linked to regional instability. Grey-listing complicates Nairobi’s ambition to become Africa’s leading financial centre.
7. Namibia
Namibia’s inclusion has surprised many investors. Regulators have flagged weaknesses in beneficial ownership rules, trust accounts, and offshore-linked financial flows, raising compliance concerns for international banks.
8. South Sudan
Africa’s youngest nation remains highly exposed due to opaque oil revenues, weak institutions, and conflict-linked financial flows. Grey-listing reinforces investor concerns about corruption and governance risks.
Why this matters for Africa in 2026
Being placed under increased monitoring affects far more than just banks. It impacts trade finance, sovereign borrowing, remittance flows, foreign aid, and foreign direct investment.
For countries already dealing with high debt and currency pressure, FATF scrutiny can quietly become an economic chokehold.
With parts of Africa also facing geopolitical isolation, sanctions risks, and instability across the Sahel and Horn of Africa, remaining on the FATF grey list in 2026 risks pushing these economies further to the margins of the global financial system.
