Major Boost for African Economies as Nigeria and South Africa Exit FATF ‘Grey List’
In a significant development for the continent’s financial standing, Africa’s two largest economies, Nigeria and South Africa, have been removed from the Financial Action Task Force’s (FATF) international “grey list.”
The delisting, announced by the global money-laundering and terrorist-financing watchdog, marks the culmination of years of concerted effort by both nations to strengthen their anti-financial crime frameworks. The FATF confirmed that each country had made “significant progress” in overhauling and fortifying its financial systems to meet international standards.
The removal from the list, which subjects countries to increased monitoring, is expected to substantially improve investor confidence and reduce the cost of international transactions.
The British High Commissioner to Nigeria, Richard Montgomery, welcomed the decision, stating it sends a “positive signal” to global investors and development partners about the improved health and transparency of the Nigerian financial sector.
The positive news extended beyond the continent’s economic powerhouses. Mozambique and Burkina Faso were also cleared from the enhanced monitoring list following similar demonstrable improvements.
However, the FATF’s update highlighted that Kenya remains on the grey list. In a move showing its commitment to ongoing reforms, Kenya recently passed the Virtual Assets Service Providers Act of 2025, a key piece of legislation aimed at regulating the cryptocurrency and digital assets space to prevent their misuse for illicit finance.
The collective progress is seen as a major step forward for financial governance in Africa, potentially paving the way for increased foreign investment and more robust economic integration into the global system.
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