At a time when Botswana faces tight fiscal space, a widening budget deficit, and rising financing needs, the strength and credibility of its financial markets have never been more important.
Absa Bank Botswana Managing Director, Keabetswe Pheko-Moshagane said from the perspective of Absa Bank Botswana—as a Tier One commercial bank—this is where the Africa Financial Markets Index, or AFMI, becomes strategically relevant.
Pheko-Mogashane made opening remarks last week at the launch of the Absa Africa Financial Markets Index.
To her, AFMI is not just an index, but a diagnostic and signalling tool that speaks directly to investor confidence, cost of capital, and fiscal resilience.
For nine years now, the AFMI has served as a trusted benchmark for measuring precisely those market attributes that determine whether a country can finance deficits efficiently, credibly, and at reasonable cost.
Covering 29 economies representing about 80 percent of the continent’s GDP, the Index enables policymakers, regulators and investors to understand areas of strength and to identify reforms that unlock long-term market development.
According to Pheko-Moshagane, this year’s AFMI highlights a continent navigating global uncertainty with determination and progress as evidenced by a few key pointers.
The Index shows that reform-minded countries have demonstrated greater resilience, particularly through foreign exchange market reforms and improved transparency.
“Secondly, the Index highlights that more economies have introduced new instruments, including green and sustainability-linked bonds, expanding investor choice and further deepening domestic capital markets,” she said, adding further 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.
The Absa MD further said that despite global volatility, GDP growth expectations improved in 22 countries, underscoring Africa’s adaptability and resilience in navigating an uncertain global environment.
“This underscores that Africa’s financial markets remain integral to the continent’s future competitiveness and economic transformation,” she stated.
Bringing it home, Botswana’s performance in the 2025 Index reflects both strength and opportunity.
Moshagane-Pheko stated that despite the challenges that the economy experienced in 2025, there are positive results that Botswana need to be proud of and leverage on as the country works towards recovery.
Botswana improved to a score of 63, placing the country firmly in the top tier of African markets.
Furthermore, the country ranks top in Africa for macroeconomic environment and transparency, supported by strong external-debt discipline and consistent data transparency.
According to the AAFMI, Botswana continues to hold the highest pension-fund assets per working-age person in Africa, underscoring the strength of 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,” she noted.
Moreover, she noted that Absa Bank Botswana remains fully committed to supporting the development of Botswana’s financial markets, mobilising capital responsibly and partnering with the government to strengthen Botswana’s fiscal and economic future.
“In 2025, we were proud to support the Ministry of Finance and the Bank of Botswana in the country’s first inflation-linked bond auction, a landmark development recognised in this year’s AFMI as a major step in strengthening market depth and product diversification,” she revealed.
She added that this work forms part of Absa’s broader mission to expand financing pathways, deepen liquidity and provide businesses with the tools they need to grow.
“For our clients, it means greater access to competitive funding, better risk-management solutions and a financial partner ready to support their ambitions in an increasingly dynamic economy.
