Country Records Significant Improvement in Financial Market Performance
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. The country’s overall score improved from 46 to 54 out of 100, reflecting the government’s targeted reforms in financial technology (fintech), foreign exchange, and capital markets development.
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, the 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. This strategy aims to broaden financial product offerings, improve market transparency, and reinforce investor confidence.
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. These measures have been recognized in Absa’s latest rankings, showcasing Rwanda’s commitment to enhancing its financial landscape.
“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. He noted that 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 market performance.
With ongoing initiatives such as the FinTech strategy and regulatory sandbox, Tsheole expressed optimism for even greater progress in the next rankings as these developments begin to show their full impact. Under the new fintech strategy, the fintech space is projected to contribute around 4 percent to the country’s gross domestic product (GDP) by 2029, up from less than 1 percent in 2024.
The country plans to introduce a Central Bank Digital Currency (CBDC), encourage data-driven lending, and implement 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 as a result of these initiatives.
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, which provide a controlled environment for fintech innovations. Once testing is complete, successful solutions can move to full commercial deployment, further enhancing the country’s financial market capabilities.
Key Points
- Rwanda's score in the Absa AFMI improved from 46 to 54 out of 100.
- The country moved from 18th to 12th place in the index in two years.
- The National Fintech Strategy aims to boost fintech's contribution to GDP to 4% by 2029.
- The Fintech Regulatory Sandbox has admitted 17 firms since its launch in 2022.
- Rwanda plans to introduce a Central Bank Digital Currency and data-driven lending.
Sources: Rwanda climbs in latest Absa Financial Markets Index