Market depth is an important tool for traders and investors to use in order to make informed decisions and understand the dynamics of a specific market.
It can assist them in identifying probable price levels for buying or selling and efficiently managing their trading methods. However, the challenging global economic situation has once again hit African financial markets, according to Absa’s 2023, Africa Financial Markets Report.
The report reads in part: “Various survey respondents identified inflation, rising interest rates in advanced economies, and geopolitical tensions as challenges to their domestic markets.”
Market depth is a measurement of supply and demand for a certain financial item, such as a stock, cryptocurrency, or commodity, inside a given market. It gives information on the asset’s liquidity and prospective price movements.
In its research, Absa utilized this criteria as one of six economic pillars to define Africa’s top financial markets.
This was scored over 100, like with every other pillar, with some countries coming close to the maximum of 100 and others close to the minimum of 10.
The 10 African countries with the greatest market depth are shown below.
| Rank | Country | Score |
|---|---|---|
| 1. | South Africa | 100 |
| 2. | Morocco | 60 |
| 3. | Nigeria | 56 |
| 4. | Mauritius | 56 |
| 5. | Botswana | 54 |
| 6. | Tanzania | 49 |
| 7. | Ghana | 46 |
| 8. | Uganda | 46 |
| 9. | Tunisia | 45 |
| 10. | Namibia | 43 |