The year’s strongest stock-market performances have come from Africa.

The Johannesburg Stock Exchange remains Africa’s largest, deepest and most accessible market, yet its All Share Index declined by 4.8% in rand terms and 3.5 percent in dollars during the first half.

Market size and market performance measure different things. A small exchange may produce faster gains, while a large exchange usually offers better liquidity, wider diversification and more reliable entry and exit.

The Lusaka Securities Exchange declined by 0.5% in kwacha terms during the first half of the year. A dollar-based investor still recorded a return of approximately 22.9% because the kwacha appreciated substantially against the dollar.

The reverse can happen just as easily. A stock market can rise strongly in local currency while its currency loses enough value to wipe out the return for a foreign investor.

You cannot invest directly in an index. You buy an instrument that gives you exposure to the companies or assets inside the market.

That instrument may be:

The last option is often misunderstood. Buying shares in JSE Limited or ZSE Holdings means investing in the company that operates the market. It does not give you ownership of all the businesses trading on that exchange.

South African investors can obtain broad exposure through a JSE-authorised broker or registered financial-services provider.

The Satrix Capped All Share ETF, for example, tracks a broad index covering about 99% of eligible JSE market capitalisation.

Diaspora investors with access to American markets may use the iShares MSCI South Africa ETF. It trades in the United States and holds 27 South African equities, although it does not track the same companies or weights as the JSE All Share Index.

A popular South African platform is not automatically accessible to everyone abroad. EasyEquities, for example, restricts its ZAR accounts to residents of South Africa and the Common Monetary Area.

Zimbabwean shares can be purchased through licensed stockbrokers, C-Trade or ZSE Direct. C-Trade promotes its online platform to Zimbabweans in the diaspora, although published registration requirements have included a Zimbabwean bank account, identification and proof of residence.

The ZSE has several exchange-traded funds. The Morgan & Co Multi-Sector ETF, for instance, is actively managed and benchmarked against the ZSE All Share Index.

The Victoria Falls Stock Exchange offers another option. VFEX securities are traded in US dollars, which reduces the direct ZiG currency exposure. VFEX Direct is open to local and foreign investors, but its published requirements include an FCA or nostro account with a Zimbabwean bank.

Digital access has improved considerably. Moving money across borders and withdrawing investment proceeds remain the harder parts of the process.

The African Exchanges Linkage Project is attempting to make regional investing easier. It currently connects 11 exchanges, including Johannesburg, Nairobi, Nigeria, Ghana, Egypt, Morocco, Mauritius and the BRVM.

An investor places an order with a participating broker, which routes it to a broker in the destination country. Custody and settlement remain under the rules of the country where the security is listed.

The project gives investors a wider doorway into African markets, although it has not removed different tax systems, currencies, foreign-ownership rules or capital controls. Zimbabwe is also not yet a participating market.

Zimbabwe’s stock-market performance arrived alongside another important development.

In July, the country launched the Zimbabwe Entrepreneurship Exchange, better known as ZEEX. It is a regulated capital-market platform created for small and medium-sized businesses that are too young or too small for the traditional ZSE or the US-dollar-denominated VFEX.

ZEEX has two proposed stages.

Businesses can start on the private market, where sponsoring brokers and corporate-finance advisers help them structure equity, debt or another investment instrument. As the companies develop stronger governance and financial records, they may progress to the public market, where their securities can be traded by retail and institutional investors.

The strongest companies could eventually graduate to the ZSE or VFEX.

Zimbabwe’s 2025 Economic Census found that SMEs account for 76.1% of businesses, generate approximately $14.2 billion in annual revenue and employ more than 70% of the workforce.

Many of these companies cannot access conventional bank finance because they lack property or other collateral. ZEEX proposes that investors should also evaluate the business model, management team, financial performance and growth potential.

Founders will have to give something in return. They may surrender part of their ownership, disclose financial information, accept outside oversight and explain how investor money is being used.

Public capital requires public accountability.

Zimbabwe is not the first country to create a smaller market for growing businesses.

South Africa launched AltX in 2003. By December 2021, 140 companies had listed, R74 billion had been raised, and 40 companies had graduated to the JSE Main Board.

Kenya’s Growth Enterprise Market Segment had a more difficult experience. Some companies listed existing shares without raising new capital, while limited investor participation produced weak trading and poor price discovery.

London’s AIM has helped more than 4,000 companies raise over £136 billion since 1995. In recent years, rising costs, weak valuations and limited liquidity have driven many companies away. Eighty-nine companies left AIM during 2024 while only 18 joined.

A trading platform can lower the barrier for companies seeking capital. It cannot create credible businesses, willing investors or active secondary trading on its own.

ZEEX will need accountants, analysts, sponsoring brokers, market makers, fund managers, regulators and investors with an appetite for smaller companies. Its performance should be judged by capital raised, jobs created, company growth, reporting quality and the ability of investors to exit.

Most small businesses are not ready for a stock-market listing, and there is nothing wrong with that. Supplier credit, purchase-order finance, cooperative investment, revenue-based funding or a sensibly priced loan may be more appropriate.

For a business preparing to raise equity, the work begins long before meeting an investor.

You should be able to show:

A charismatic pitch may open the meeting. Reliable numbers determine what happens next.

The diaspora already finances African economies every day. Much of that money supports families by paying for food, school fees, medical care and housing. These transfers are social lifelines and should not be treated as spare investment capital.

Those who have additional money to invest can move gradually from remittances to ownership.

The first level may be regulated public investments such as ETFs, listed shares, bonds or REITs. The next may involve professionally managed funds that spread money across several companies. Private placements and direct business equity require deeper research and stronger legal protections.

Sending money to a friend or relative’s business does not remove the need for paperwork. A serious arrangement needs a written shareholder agreement, financial reporting, voting and information rights, a defined use of funds, and clear provisions for dividends or exit.

The diaspora also brings assets that do not appear on a bank statement. An entrepreneur may benefit from an export customer, a distribution agreement, specialist knowledge, supplier contacts or an experienced board member.

Africa needs diaspora capital. African companies also need diaspora markets, skills and networks.