The Best African Stock Markets of 2024

The continent’s equities markets showed resilience and growth, with standout performances in Kenya and West Africa’s BRVM.

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Global stocks will post another strong year of gains defying many early-year forecasts of subdued growth. The Nasdaq Composite once again led the charge in 2024, rising more than 30% while the S&P 500 has increased over 24%. The Dow Jones Industrial Average is up 14%.

Amid this backdrop of robust global returns, African stock markets also delivered stellar performances. They proved to be resilient and rewarding options for both local and international investors due to their unique growth narratives, undervalued opportunities, and hedges against inflation.

In 2024, African stock markets outpaced other emerging markets in local currency returns, driven by a mix of macroeconomic resilience, high-profile IPOs, and robust investor sentiment. However, currency dynamics presented a mixed picture, with some exchanges showing strong returns even in foreign currencies, while others struggled with depreciation-related losses.

General Trends and Key Drivers

Across Africa, equity markets benefited from strong economic performance, with many countries reporting above-average GDP growth rates. Inflationary pressures and currency devaluations led investors to hedge against eroding value by moving assets into equities, which offered better yields than bonds and money market instruments. 

High-profile IPOs, such as Benin’s National Lottery on the BRVM and Aradel Holdings in Nigeria, attracted significant interest, showcasing the increasing depth and vibrancy of African capital markets.

The integration of reforms, such as Kenya’s focus on increasing transparency and efficiency on the Nairobi Securities Exchange (NSE), and South Africa’s continued recovery post-COVID, also played a critical role in boosting investor confidence.

Meanwhile, the BRVM’s stability, underpinned by the CFA franc’s euro peg, made it a particularly attractive destination for regional and international investors wary of currency volatility.

Regional Highlights: Key Markets and Milestones

Kenya: A Year of New Highs

The NSE emerged as one of the strongest performers on the continent, recording a 33.67% return in local currency, which surged to an impressive 62.34% in USD terms due to a stable shilling. The market’s total capitalization rose to KSh 1.913 trillion, driven by robust performances from blue-chip stocks like East African Breweries PLC, Standard Chartered Bank Kenya, and Safaricom.

Notable milestones included a 300% surge in East African Portland Cement’s stock price, reflecting the positive impact of infrastructure investments and export growth. Meanwhile, Kenya Power and Lighting Company also recorded a nearly 200% increase in its share price, buoyed by improved financial performance and strategic reforms in the energy sector. These gains underlined the importance of economic diversification and targeted government policies in driving investor confidence.

BRVM: A Safe Haven for Regional Investors

The Bourse Régionale des Valeurs Mobilières (BRVM) stood out as an oasis of stability and growth, with a 27.11% return in local currency and a 19.89% USD return. The exchange’s euro-pegged CFA franc protected investors from currency volatility, making it a favored destination for international investors.

The BRVM crossed a historic milestone, with its market capitalization exceeding $16 billion. This was fueled by the IPO of Benin’s National Lottery (Loterie Nationale du Bénin), which raised $69 million in one of the year’s most successful public listings. The IPO attracted a diverse pool of investors, with 33% participation from international markets and 42% from within WAEMU. This demonstrated the growing confidence in the BRVM as a platform for regional and international capital-raising.

Additionally, the performance of longstanding stocks like Sonatel and Ecobank Transnational Incorporated provided steady returns, reinforcing the BRVM’s position as a stable and growth-oriented market. The exchange also added 2,000 billion CFA francs to its capitalization in 2024, driven by increased trading activity and renewed investor interest.

Nigeria: Local Gains Overshadowed by Currency Challenges

The Nigerian Exchange (NGX) delivered an exceptional 37.95% return in local currency, driven by strong performances in banking and energy stocks. However, a significant naira devaluation led to a 19.64% drop in USD-denominated returns, dampening foreign investor gains.

Aradel Holdings’ IPO was one of the year’s highlights. Initially valued at N702.69 per share, the stock captured investor attention with its listing, reaching a market capitalization of N3.35 trillion before declining sharply due to profit-taking and market liquidity concerns. The IPO underscored the dual challenges and opportunities in Nigeria’s equity markets, where high returns coexist with volatility and currency risk.

High-performing stocks included Zenith Bank, which benefited from strong earnings and improved loan portfolios, and Seplat Energy, which rode the wave of rising global energy prices. Despite challenges, Nigeria’s capital markets showcased resilience, with increasing retail participation and strong corporate earnings.

Egypt: Mixed Fortunes Amid Currency Weakness

The Egyptian Exchange (EGX 30) posted a 17.8% local currency return, supported by industrial and financial stocks. However, the Egyptian pound’s significant devaluation resulted in a 28.26% loss in USD terms, deterring foreign investors.

Notable performers included Commercial International Bank and El Sewedy Electric, which capitalized on robust domestic demand and export opportunities. However, the exchange’s overall appeal was hindered by persistent economic challenges, including high inflation and external debt concerns.

South Africa: Stability and Recovery

The Johannesburg Stock Exchange (JSE) delivered a 9.17% local currency return, recovering from a challenging start to the year. Improved electricity availability, following reforms at Eskom, boosted investor confidence and industrial productivity. The formation of a business-friendly coalition government also played a key role in stabilizing market sentiment.

Key milestones included the record-breaking IPO of Boxer, a discount grocery chain, which raised $471 million. The listing highlighted the JSE’s ability to attract high-profile companies and underscored its position as a mature and well-regulated market.

Banking stocks, such as Standard Bank and FirstRand, led the charge, reaching all-time highs on the back of robust earnings and improved economic conditions. Meanwhile, the rand emerged as one of the best-performing currencies globally, further enhancing the appeal of South African assets to international investors.

2025 Outlook: Building on Momentum

As we look ahead to 2025, top banks like JP Morgan project modest gains for emerging market equities, advocating a selective, theme-driven investment strategy​. 

For African markets, this translates to continued opportunities in stable and high-growth regions like the BRVM and Kenya, alongside cautious optimism for markets like Nigeria and Egypt, where currency risks remain significant.

The BRVM is expected to maintain its momentum, supported by economic growth in WAEMU countries and increased investor participation. Meanwhile, Kenya’s NSE is poised for further gains as infrastructure investments and digital transformation drive economic growth.

South Africa’s JSE could see renewed interest, with anticipated interest rate cuts and ongoing reforms enhancing its competitiveness. In Nigeria and Egypt, addressing currency challenges will be key to unlocking their full potential.

African stock markets in 2024 showcased resilience and growth, with standout performances in Kenya, the BRVM, and Nigeria highlighting the continent’s investment potential. Despite challenges such as currency volatility, the region’s markets offer unique opportunities for both local and international investors.

With cautious optimism for 2025, Africa is set to remain a dynamic and promising destination for global capital, underscored by strategic reforms, high-profile listings, and sustained economic growth. For investors seeking diversification and long-term value, Africa’s stock markets present a compelling case for inclusion in global portfolios.