Johannesburg / Lagos – July 2025

In a world economy weighed down by inflation, interest rate hikes, and geopolitical tensions, South Africa and Nigeria are emerging as unlikely standouts—with both countries recording positive market momentum and foreign investment inflows in recent months.

The Johannesburg Stock Exchange (JSE) has shown steady growth in the mining, fintech, and retail sectors, while Nigeria’s NGX has benefited from currency reforms, higher oil revenues, and renewed interest in consumer goods and banking stocks.

“Investors are recognizing the long-term potential despite the noise,” says Lesego Molefe, an equity strategist at FirstRand. “These markets are pricing in reform.”

In South Africa, the resilience comes amid slow but steady fiscal consolidation, improved power supply from Eskom, and a rebound in consumer confidence following wage adjustments in the public sector.

Meanwhile, Nigeria’s naira reforms—though controversial—have improved FX liquidity and attracted foreign institutional capital, particularly into banking and telecoms stocks.

Both countries also benefit from having deep capital markets, relatively diversified economies, and domestic pension funds that provide base-level demand for equities and bonds.

However, risks remain: – South Africa faces election-year uncertainty and load shedding volatility – Nigeria must manage inflation and social discontent linked to subsidy removals

Analysts suggest that continued reforms, political stability, and structural investment—particularly in infrastructure and technology—will determine whether this market resilience is sustainable.

“It’s not just about surviving the global storm—it’s about rewriting Africa’s growth story,” says economist Ifeanyi Ugwuoke.