Rwanda has emerged as one of the standout performers in the 2025 edition of the Absa Africa Financial Markets Index (AFMI), posting the largest year-on-year improvement among 29 African economies assessed. Its overall score improved from 46 to 54 out of 100, reflecting the country’s targeted reforms in financial technology (fintech), foreign exchange, and capital markets development. ALSO READ: Govt bets on fintech to spur financial sector under new strategy The AFMI evaluates African financial markets across six pillars, which include market depth, foreign exchange access, market transparency and regulation, pension fund development, macroeconomic environment, and legal standards. The index, now in its ninth year, benchmarks progress and highlights opportunities for policymakers to strengthen financial systems. According to Absa, Rwanda Capital Markets Authority (CMA) has spearheaded the implementation of the country’s National Fintech Strategy, a comprehensive roadmap for developing a robust and inclusive fintech ecosystem. The government has also launched the Fintech Regulatory Sandbox, an environment for testing and launching financial products and services, to support innovation in capital markets. ALSO READ: Rwanda targets $200mn in new financial technology investments These measures have broadened financial product offerings, improved market transparency, and reinforced investor confidence, Absa said its latest rankings. “Rwanda’s steady climb in the Absa AFMI, from 18th to 12th place in just two years, demonstrates that our strategies to deepen and strengthen the financial sector are working,” said Thapelo Tsheole, the CEO of CMA. According to Tsheole, a joint task force between the Capital Market Authority and the National Bank of Rwanda was established to identify and develop key areas that will further enhance the market performance. “With ongoing initiatives such as the FinTech strategy and regulatory sandbox, we expect even greater progress in the next rankings as these developments begin to show their full impact,” he noted. ALSO READ: Rwanda targets $200mn in new financial technology investments Under the new fintech strategy, the fintech space is projected to contribute around 4 per cent to the country’s gross domestic product (GDP) by 2029, up from less than 1 per cent in 2024. The country plans to introduce a Central Bank Digital Currency (CBDC), encourage data-driven lending, and open finance laws allowing banks and mobile operators to share client data securely. It is also expected that around 7,500 fintech jobs will be created. On the other hand, the sandbox, developed and managed by the Central Bank, is designed to promote innovation while protecting consumers. At least 17 fintech firms have already been admitted into the sandbox since its launch in 2022. Fintech firms are required to demonstrate innovation, readiness for live testing, and risk mitigation strategies as part of the application process. Rwanda is one of 16 African countries with regulatory sandboxes. Once testing is complete, successful solutions can move to full commercial deployment.
