Top 10 African Countries with the Highest Domestic Investor Participation 2025 | USAEMALL.com

In Summary

• Within the first four months of 2025, the proportion of domestic investor transactions on the NGX dropped to 67.68% from 86.23% in the same period of 2024, according to the Nigerian Exchange Group.
• The World Trade Organization projects that global trade will grow by 3.0% in 2025, up from 2.7% in 2024, pushing Africa’s local capital to $4 trillion.
• According to Abena Amoah, Managing Director of the Ghana Stock Exchange, Africans invested $125 billion in cryptocurrency assets, with Nigeria alone contributing over $65 billion, making it the second-largest cryptocurrency investor base globally after India.

Deep Dive!!

In recent times, domestic investors have continued to play a significant role in African financial markets despite reports indicating that their proportion of total transactions may be declining slightly compared to foreign investors. 

While direct foreign investment has maintained an upward trajectory, as highlighted in our article “Top 10 Development Finance Institutions (DFI) in Africa 2025”, domestic investors, both retail and institutional, are maintaining a strong presence, particularly in sectors like private equity and venture capital. These remain dominant sectors for investment, with private capital deals on the continent outpacing global averages according to Boston Consulting Group. 

Countries like Nigeria, South Africa, and Kenya remain key markets for both domestic and international investors. Amid global economic fluctuations and tighter foreign capital flows, these African nations lead the charge in turning inward to harness the potential of local savings, pension funds, fintech innovation, and grassroots investor education to drive capital formation from within. This shift is not just reshaping national economies, it is redefining who controls the financial narrative across the continent.

Domestic investor participation across Africa is growing, and it is driven by digital access, institutional reforms, mobile engagement, and local investor confidence. Yet challenges remain, such as low savings rates, shallow markets, and policy fragmentation.

In this article, we highlight the Top 10 African Countries with the Highest Domestic Investor Participation in 2025, focusing on how each nation is mobilizing local capital to fund development, stabilize markets, democratize financial access, and remain strong in the face of global challenges.

10. Nigeria

Nigeria leads the continent in domestic market involvement. As of April 2025, domestic investors accounted for over 67% of NGX activity, while foreign portfolio investment rose to 32%, signaling a maturing market. These figures reflect a robust ecosystem of institutional investors pension funds, PFAs, and individual traders, who sustained the “N10.8 trillion equity surge” in 2024.

Its large and increasingly digitally-enabled population has fueled retail investor growth. Despite economic challenges like FX volatility, domestic investment remains the market’s backbone, anchoring liquidity when foreign flows fluctuate. This resilience underscores the importance of nurturing local capital for sustainable financial development.

9. Morocco

Morocco’s Casablanca Stock Exchange (CSE) is Africa’s second-largest and has made significant strides in engaging domestic investors. With a market capitalization of approximately $106 bn in 2025, the CSE has rolled out derivatives (MASI 20 index futures) to deepen engagement. Though local participation remains under 1%, these innovations aim to educate investors and attract domestic involvement.

By offering diversified trading tools such as futures, options, and REITs, Morocco’s exchange empowers local investors with more control and hedging capabilities. These steps foster retail and institutional involvement and signal a maturing, more inclusive capital market.

8. Kenya

Kenya’s Nairobi Securities Exchange (NSE) remains a capital market leader in East Africa. While specific domestic investor percentage data is limited, the NSE’s innovative landscape which includes mobile-based trading, and an East African Bonds Exchange license signals strong local participation. Combined with YTD gains of approximately 19%, this adds to a stable foundation for investor engagement.

The country’s mobile money revolution (M-Pesa) lowers barriers for retail investors. The introduction of bonds and the affordability of mobile trading attract a broader spectrum of Kenyans, boosting participation beyond traditional institutional investors.

7. Ghana

The Ghana Stock Exchange (GSE) recorded dynamic equity performance, with its CSE rising to approximately 21% in 2025. Though detailed domestic vs foreign participation is less documented, local fund managers and retail investors dominate, especially after Ghana’s 2023 IMF-assisted reforms elevated market confidence.

Ghana’s efforts in regulatory transparency and economic stability have cultivated a growing local investor base. For African markets to break reliance on foreign capital, Ghana’s trajectory provides an encouraging blueprint.

6. Botswana

Botswana’s stock market, while smaller, is notably stable. It climbed from 7th to 6th in the AFMI rankings, buoyed by its first sustainable bond issuance and strong regulatory framework. While domestic participation is moderate, institutional and retail involvement is solidified by Botswana’s reliable business environment.

Botswana illustrates how governance, sustainability frameworks, and policy consistency create confidence among local investors. Even modest markets can encourage active domestic participation through transparency and inclusion.

5. Zambia

The Lusaka Securities Exchange (LuSE) excelled recently, with the GEM portal for SMEs and 28% YTD index growth, backed by domestic investor involvement. Though segment breakdowns are scarce, LuSE’s increased listings, green bond incentives, and governance codes appeal strongly to local investors.

Zambia shows that smaller, agile markets can boost participation through digital platforms, SME focus, and progressive regulation, demonstrating the catalytic role of policy in engaging domestic investors.

4. Rwanda

Rwanda Stock Exchange (RSE), with only a handful of equities (e.g., Bralirwa, Bank of Kigali), continues a steady path. While still developing, its growing transparency, local listings, and digital agent-based trading encourage incremental domestic husbandry.

The country’s cautious and community-oriented stock market model prioritizes domestic awareness. By positioning local investment as accessible, the nation nurtures gradual but sustainable domestic investor growth.

3. Tanzania

Dar es Salaam Stock Exchange introduced mobile trading in 2015, democratizing access. While broader figures are limited, digital channels and increased public registration indicate a rise in local equity participation.

Tanzania’s mobile-based trading solutions are a powerful tool for including rural and digital-first local investors, turning financial access into a mechanism for broader participation and capital deepening.

2. Egypt

Egypt holds one of Africa’s largest financial markets. Investment forecasts show strong FDI inflows (approximately $9.8 billion). Though foreign capital leads, Egypt’s retail and institutional investor base remains influential due to its sizable economy and banking sector.

   demonstrates how dual mobilization, encouraging both domestic retail participation and enabling healthy foreign involvement builds capital market robustness. A strong local base offers greater market depth.

1. Ethiopia

The newly launched Ethiopian Securities Exchange (ESX) in early 2025 marks a milestone. With plans to list approximately 90 firms in a decade, ESX aims to channel domestic savings into capital markets, especially through SME-focused offerings.

Ethiopia fast-tracked its capital market with strong government support and institutional structures. Given its large savings potential and private sector mobilization, ESX has a high potential to evolve domestic participation quickly.