Africa's financial future shines after FATF delisting

The Financial Action Task Force (FATF) has announced the removal of Mozambique, Nigeria and South Africa from its ‘grey list’ following its October 2025 Plenary. This landmark decision signals a major vote of confidence in the nations' enhanced anti-money laundering (AML) and counter-terrorist financing (CTF) frameworks. For these countries and the wider African continent, this is a pivotal moment that promises to unlock substantial economic growth and restore investor confidence.

The removal from the list is a testament to the dedicated and rigorous efforts these nations have undertaken to align their financial systems with global standards. By strengthening their regulatory environments, they have demonstrated a firm commitment to financial integrity, setting a powerful precedent for others. This development not only enhances their individual reputations but also strengthens Africa's position in the global financial landscape.

"This milestone demonstrates the value of perseverance and coordinated national effort in meeting international expectations," notes Clive Betty RSM’s Africa Regional Leader. "African countries are leading the way in embracing strong governance and compliance culture, positioning themselves as credible, reliable partners and opening up opportunities for cross-border investment."

The journey to compliance and its rewards

Placement on the FATF grey list signifies that a country is under increased monitoring while it works to resolve identified strategic deficiencies in its AML/CTF regimes. The path to being delisted is demanding, requiring decisive government action, legislative reform, and demonstrable progress in enforcement.

Nigeria, Mozambique, and South Africa have successfully navigated this complex process. Their achievements highlight a collective resolve to build robust financial systems that are resilient to illicit activities. The economic implications are profound, as the delisting paves the way for increased foreign direct investment, lower costs for international transactions, and improved access to global financial markets.

Eben Joels Managing Partner for Stransact Chartered Accountants, RSM’s correspondent firm in Nigeria adds,

"The exit from the FATF grey list is more than a technical achievement – it signals to the world that these nations are committed to progress and doing business on fair, transparent terms. This is exactly the kind of development global investors look for."

Mozambique: a commitment to financial reform

Mozambique's removal from the grey list marks a critical milestone in its ongoing journey of economic development and financial reform. The country has worked diligently to address the strategic deficiencies identified by the FATF, implementing key Mozambique financial reforms that strengthen its AML/CTF capabilities.
Edite Langa, Head of Advisory at RSM Mozambique, notes:

“The Financial Action Task Force (FATF) has recognised Mozambique’s significant improvements in its AML/CFT regime, highlighting the country’s efforts to strengthen governance, financial transparency, and enforcement capacity. Key reforms include enhanced coordination among authorities, improved supervision of financial institutions, comprehensive risk assessments, and stronger law enforcement capabilities in investigating money laundering and terrorist financing.”

Nigeria: strengthening a dynamic economy

As one of Africa's largest economies, Nigeria's progress is particularly impactful. The country has made substantial strides in enhancing its regulatory framework to meet FATF standards, a key step in its journey towards greater economic stability. Nigeria FATF compliance sends a strong signal that it is a secure and transparent place to do business.

This development will help to lower risk premiums for Nigerian entities, making it easier for middle-market organisations to secure international financing and partnerships. It reinforces the nation’s efforts to diversify its economy and attract investment into burgeoning industries like technology and manufacturing, fostering sustainable Africa economic growth.

South Africa: restoring investor confidence

For South Africa, removal from the grey list is a significant victory. The initial listing in February 2023 created uncertainty and increased the cost of doing business, impacting everything from international trade to borrowing costs. The country's swift and effective response, implementing a comprehensive action plan, has been crucial.
Philip Kruger, Director in the RSM South African Legal practice, shares,

"South Africa has proven its commitment to combatting financial crimes, particularly since its grey listing early in 2023. The regulatory and legislative reform that has occurred since its grey listing places South Africa in the perfect position to grow and strengthen diplomatic relationships and to expand on its partnerships with international organisations, resulting in tangible financial and economic gain. It certainly is a very exciting period that lies ahead for South African businesses and industries."

A new chapter for Africa's economic landscape

The implications are Mozambique, Nigeria and South Africa are far-reaching:

Enhanced international credibility: Reduced financial risks and stronger oversight make these countries more attractive to foreign investors, development partners and multinational companies.
Better access to global financial systems: Improved transparency enables banks and businesses to overcome past restrictions, streamlining cross-border payments and facilitating trade and investment in key sectors.
Investment and growth opportunities: A transparent, well-regulated environment now attracts greater foreign direct investment especially in mining, gas, renewables, and infrastructure thereby boosting economic growth and job creation.
Strengthened institutional capacity: Improved coordination among regulatory authorities addresses long-standing challenges, creating a more predictable and stable business environment.
This progress especially benefits:
Middle-market organisations: Easier access to financing and cross-border markets.
Investors and development partners: Increased confidence to engage in long-term projects.
Key economic sectors: Mining, energy, agribusiness, and infrastructure developers benefit from reduced regulatory risks.
Non-profits and civil society organisations: Enhanced compliance oversight protects against misuse and supports donor transparency.

The FATF grey list removal of these three influential African nations is more than a procedural update; it is a catalyst for regional transformation. It showcases that African countries are proactively taking charge of their financial destinies and committing to global best practices. This collective progress helps to reshape the narrative around risk and governance on the continent.

"The removal of Mozambique, Nigeria and South Africa from the FATF grey list is a decisive vote of confidence in major economies of the continent. It also bears testament to the effectiveness of Africa's financial-crime controls and a catalyst for capital flows across the continent. As a stable financial gateway between Africa and global markets, Mauritius warmly welcomes this progress and stands ready to help businesses scale into these fast-growing economies," says Bipin Gooriah, RSM Mauritius Risk and Compliance Director.

We believe this is a defining moment. It reinforces the importance of collaboration between governments, regulators, and the private industry to build a financial ecosystem founded on trust and transparency. With a more stable and compliant financial environment, Africa is better positioned to harness its immense potential, drive innovation, and create lasting opportunities for its people. This delisting empowers these nations for a future defined by confidence and growth.

At RSM, we understand that navigating regulatory change is essential for success. Our deep, industry-specific knowledge and global network empower middle-market organisations to adapt, thrive, and take charge of change. RSM supports clients through advisory, audit, assurance, and consulting services tailored to help businesses capitalise on the opportunities created by these reforms. By providing insights and expertise, we help you build the confidence needed to move forward in an ever-evolving world.