Africa's Economic Giants Exit FATF's Grey List

South Africa and Nigeria, two of Sub-Saharan Africa's largest economies, alongside Mozambique and Burkina Faso, have been excised from the Financial Action Task Force's (FATF) increased monitoring list. The announcement, which came after the FATF's recent plenary meeting, marks a significant positive shift for the continent's financial stability.

The FATF had previously placed South Africa and Nigeria under enhanced scrutiny in 2023 due to concerns over illicit money flows. Enhancements in inter-agency coordination and financial intelligence sharing played a pivotal role in their removal from the list. Mozambique and Burkina Faso, which faced similar challenges, have also been acknowledged for improvements in financial oversight.

Experts predict that the removal from the list could ease capital inflow constraints and reduce funding costs, promoting economic growth in these regions. The move is expected to facilitate smoother cross-border payments and expand banking services, invigorating trade-finance operations across the affected countries.