African stock exchanges have delivered one of the strongest half-years on record, according to Mansa Markets. In the first half of 2026, 11 African stock markets outperformed the S&P 500 in U.S. dollar terms.

The rally has continued into the second half of the year. As of early August, Zimbabwe has emerged as Africa’s best-performing stock market, with the ZSE All Share Index reporting a 71% year-to-date (YTD) dollar return. It has overtaken the Nigerian Exchange (NGX), which has delivered a 68.2% YTD dollar return. Other notable performers include Ghana (+63.5%), Tunisia (+47.8%), and Tanzania (+40.9%).

So, what’s driving the surge? Dollar returns from several African stock markets are being boosted by stronger local equities, greater currency stability, structural reforms, and increased domestic participation.

Related post: Dangote’s $39B Refinery Is Going Public — Here’s How Africans Can Invest

The Economics Behind the Booming Markets 

For years, foreign investors in African equities often saw local market gains eroded when converting profits back into U.S. dollars because of sharp currency devaluations. When local currencies lost value faster than stocks appreciated, dollar-denominated returns could be significantly reduced or even turn negative. That dynamic has begun to change.

Nigeria is a clear example. The Nigerian naira moved from an official rate of about ₦460 per dollar in early 2023 to roughly ₦1,535 per dollar by the end of 2024. Stock market gains during that period were therefore partially or fully offset by the currency’s decline when converted into dollars. However, by mid-2026, the naira’s daily volatility had dropped from more than 4% in 2024 to around 0.5%. One factor contributing to greater currency stability is the Dangote Petroleum Refinery, which has the capacity to process up to 650,000 barrels a day. By reducing Nigeria’s reliance on imported refined fuel, the refinery has also helped ease demand for U.S. dollars.

With the currency moving more steadily, local stock market gains are translating more clearly into dollar returns. This is one of the key factors behind the strong performance of some African markets in 2026: greater currency stability means investors are less likely to see equity gains wiped out by exchange-rate losses.

Related post: World’s Richest Black Man Aliko Dangote Plans to Give Away 33% of His Fortune

Zimbabwe’s Unexpected Growth

Few would have expected Zimbabwe, a country with a long history of high inflation and currency instability, to emerge as one of Africa’s strongest-performing stock markets. But the rally has coincided with efforts to stabilize the economy and local currency.

Zimbabwe introduced the Zimbabwe Gold (ZiG/ZWG) currency in 2024, and annual ZiG inflation fell to 3.2% in July 2026, down from 4.7% in June. At the same time, several companies have moved their listings from the Zimbabwe Stock Exchange (ZSE) to the Victoria Falls Stock Exchange (VFEX), which trades in U.S. dollars and therefore reduces investors’ exposure to fluctuations in the local currency.

Greater currency stability and easing inflation have helped improve investor sentiment toward Zimbabwean equities. Trading activity has also picked up. Africa Stock Exchanges Live recently reported a Friday session in which 2.29 million shares were traded across 92 deals worth ZWG 9.38 million. The ZSE All Share Index has emerged as one of the continent’s top-performing markets in 2026.

Related post: Nigerian Fintech Daya Raises $2.4M Pre-Seed to Scale Stablecoin Payments Across Africa

Why Certain Markets are Growing So Fast 

Market size can also help explain some of the differences in percentage returns between countries. The Johannesburg Stock Exchange (JSE) is Africa’s largest stock market by a wide margin. But in 2025, Malawi’s much smaller exchange delivered roughly six times the JSE’s return. Smaller exchanges tend to have lower market capitalization and trading volumes, meaning relatively modest inflows of new investment can sometimes have an outsized impact on share prices and index performance. This can help explain why some of the continent’s largest percentage gains are coming from smaller markets rather than its biggest exchanges.

Africa’s stock markets are gaining momentum. While most remain far smaller and less liquid than major U.S. markets such as the S&P 500, the strong returns across several African exchanges are giving both local and international investors reason to pay attention.

Main image: Business professional analyzing stock market data on dual laptops in an office. Source: Yan KruKox via Pexels

Join the UrbanGeekz community for the latest in tech, innovation, entrepreneurship, culture, and opportunities. Subscribe here.

The post How African Stock Exchanges are Outperforming the S&P 500 appeared first on UrbanGeekz.