2026 Perspectives for the Public Sector

8 Absa/OMFIF. (2025). Absa Africa Financial Markets Index 2025 9 Fines, O. and Chan, P. (Eds.) (2025). Capital Formation in Africa: A Case for Private Markets. CFA Institute. Enhancing the Legal and Trading Ecosystem Beyond creating a supply of regular issuances, a robust ecosystemmust be anchored on legal certainty and liquid complementary markets. 1. Legal Certainty for Hedging: Shallow derivative and repo markets inhibit liquidity and the participation of sophisticated investors who need instruments to hedge risk and fund positions. Developing deep repo markets, which facilitate cash and securities flow, requires a supportive legal framework. Reforms must prioritize the adoption of standards like the General Master Repurchase Agreement (GMRA) and establishing legal certainty for close- out netting provisions in case of insolvency. 8 In 2025, Ghana received a clean legal opinion confirming the enforceability of the GMRA under Ghanaian law, leveling up with Africa peers like Nigeria, South Africa and Mauritius. 2. FX and Data Credibility: Transparent and predictable foreign exchange frameworks are important considerations for investors, both local and foreign. Whereas foreign investors prioritize clarity on fx liquidity and operational procedures to convert and repatriate funds, local investors actively analyze multiple exchange rates in the market in order to deduce the true level of prices and valuation of assets. Nigeria’s recent structural reforms, including unification of FX windows, clearing of FX backlogs and enhanced reporting has directly improved portfolio investor confidence. 3. Reducing Fragmentation: Market fragmentation hinders efficiency, as seen in the WAEMU region, where two separate government debt securities markets (BRVM-listed bonds and central bank OTC trades) operate under different rules. 9 Consolidating security issuance, typically by reducing the number of securities and increasing the size of benchmark issuances through reopenings, substantially improves secondary market liquidity. Transparent and predictable foreign exchange frameworks are important considerations for investors, both local and foreign. 58 Deepening Africa’s Domestic Debt Capital Markets: The Cornerstone of Sovereign Resilience