Zimbabwe ended last month as Africa’s best-performing equity market, overtaking Nigeria, the continent’s most populous nation, after months of sustained gains driven by easing inflation, a more stable domestic currency, and renewed investor appetite for local equities.
Data from African Markets, a real-time market intelligence platform, shows the Zimbabwe Stock Exchange (ZSE) returned 68.5 percent in US dollar terms year-to-date as of July 31, 2026, the highest among the 17 African exchanges tracked. Nigeria followed with 66.9 percent, Ghana with 57.6 percent, while Tunisia posted 46.3 percent and Tanzania had 40.5 percent.
Malawi, which topped Africa’s performance rankings last year, has slipped into negative territory with a 15.9 percent decline. In local currency terms, however, Ghana remains the strongest performer, followed closely by Zimbabwe.
The Southern African nation’s ascent caps a reversal in leadership. Nigeria had dominated the continent’s stock market performance rankings for much of 2026, buoyed by banking-sector gains, stable naira and improving macroeconomic sentiment, before Zimbabwe overtook it in the last week of July. With an all share index at two-year high of 480.8, the country is amongst the least in terms of index value.
African Stock Exchanges Live reported that trading activity on the Exchange surged on Friday, with 2.29 million shares traded in 92 deals worth ZWG9.38 million.
Compared with the previous trading session, volume rose 390 percent, turnover increased 446 percent, and the number of deals climbed 39 percent, according to the platform.
Zimbabwe’s rally is also part of a broader resurgence in African equities. According to Mansa Markets, 11 of the 17 African stock indices it tracks are outperforming the S&P 500’s 9.3 percent return in dollar terms this year, highlighting renewed investor appetite for frontier markets.
Within that broader rally, Zimbabwe has emerged as the continent’s standout performer, with the ZSE All Share Index gaining 72.3 percent year-to-date in local currency through July.
The turnaround is interesting.
Only a few years ago, the country’s equity market functioned largely as a hedge against hyperinflation and rapid currency depreciation, with investors buying shares primarily to preserve wealth. Today, improving macroeconomic fundamentals are increasingly driving valuations, signaling that the market is evolving beyond its traditional role as a store of value.
Zimbabwe’s ascent caps a reversal in leadership. Nigeria had dominated Africa’s stock market performance rankings for much of 2026, buoyed by banking-sector gains and improving macroeconomic sentiment, before Zimbabwe overtook it in the last week of July.
Source: Zimbabwe overtakes Nigeria as Africa’s best-performing stock market – Businessday NG
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