As African countries stare down the barrel of potentially tougher global financial conditions in 2026, access to foreign exchange (FX), especially considering the debacle of the gold market, presents a very interesting challenge.
- African nations are preparing for more stringent global financial conditions expected in 2026, emphasizing the critical need for foreign exchange (FX) accessibility.
- Strong FX frameworks promote investment, borrowing, and trade by reducing uncertainty and transaction costs.
- Disparities in FX systems exist across Africa, with some nations facing exchange rate instability and shallow FX markets.
- Efforts to enhance FX transparency and compliance with global standards are gaining traction, as seen through increased participation in the FX Global Code.
FX access refers to the ease with which international investors can deploy and repatriate cash, as well as the effectiveness with which central banks can regulate volatility caused by cross-border capital flows.
At its core, strong FX access is required for portfolio investing, sovereign borrowing, and cross-border trading.
Transparent, rule-based, and integrated foreign exchange regimes reduce uncertainty, lower transaction costs, and encourage participation from both domestic and foreign investors.
Where these circumstances exist, capital flows more freely, and markets price risk more precisely.
However, access to foreign exchange remains uneven over much of the continent.
Exchange rate concerns persist, especially during periods of external shock, casting doubt on central banks’ ability to stabilize currency rates.
Parallel market premiums in some nations continue to indicate distrust in official FX markets, weakening confidence, and distorting pricing.
Additionally, many smaller economies have shallow foreign exchange markets, with significant bid-ask spreads and frequent rationing.
DON’T MISS THIS: South Africa emerges as the hardest country to collect debt in Africa
These conditions discourage inflows and limit the attractiveness of domestic assets, increasing reliance on short-term or foreign funding.
Despite these hurdles, reform momentum is growing.
According to Absa’s most recent research, reform-minded countries have enhanced market transparency, increased liquidity, and attracted investment.
Nigeria stands out, with a 21-point improvement in FX access.
In addition, four countries, Eswatini, Ethiopia, Ghana, and Uganda, adopted the FX Global Code, bringing the total number of African signatories to 13, a significant step toward global best practices.
With that said, here are the African countries with the most access to foreign exchange in 2025 as per the current Absa Africa Financial Markets Index.
