Africa’s capital markets could be entering a new phase as the focus shifts from relying heavily on foreign investment to making better use of the continent’s own growing pools of capital. Temi Popoola, Group Managing Director and Chief Executive Officer of Nigerian Exchange Group (NGX Group), says pension funds, asset managers, financial institutions and individual investors hold significant savings that could be channelled into African businesses more efficiently.

Popoola’s position comes as businesses across the continent continue to seek long-term funding for expansion in sectors including infrastructure, energy, manufacturing, technology, agriculture and financial services. While foreign investment remains important, stronger connections between African markets could allow domestic investors to participate more directly in opportunities outside their home countries. The goal is to move beyond largely separate national markets towards a more connected African capital market ecosystem.

However, significant barriers remain. Investors looking across borders still have to deal with different regulations, currencies, settlement systems, disclosure requirements and distribution channels. Initiatives such as the African Exchanges Linkage Project (AELP), supported by the African Securities Exchanges Association and the African Development Bank, are working to improve access to securities across participating African markets. NGX is among the exchanges involved in the initiative.

Nigeria provides a major example of the potential of deeper capital-market participation. The Dangote Petroleum Refinery and Petrochemicals public offer, launched on the Nigerian Exchange on September 14, 2026, demonstrates how large African businesses can use capital markets to broaden ownership and raise long-term funding. For NGX Group, such transactions also highlight the importance of building infrastructure that can connect businesses with increasingly wider pools of investors. Popoola told the BBC that Africa needs to mobilise capital across the continent and direct it towards businesses in different countries to support collective economic growth.

Achieving that vision, however, will require more than connecting trading platforms. African regulators, exchanges, brokers, custodians and settlement institutions will need greater cooperation, while investors will need confidence in disclosure standards, liquidity, currency management and the ability to move capital efficiently. If these challenges are addressed, a more connected African capital market could help unlock local savings, broaden business ownership and give African companies access to deeper sources of funding. The opportunity is therefore not simply about increasing trading activity, but about creating stronger financial links between Africa’s savings and its economic growth.

source: nairametrics