There’s been some good news for the gambling sector coming out of Africa, with Nigeria and South Africa taken off the Financial Action Task Force (FATF) grey list.

The international FATF grey list includes jurisdictions that the watchdog sees at heightened risk of attracting criminal conduct due to weak anti-money laundering counter-terrorrist financing (CTF) policies.

Countries on that list are subjected to increased monitoring procedures by the FATF until they smooth out the outlined deficiencies.

Nigeria entered the list back in 2023, when a national audit by the FATF revealed that the African nation was lacking behind in AML/CTF standards.

In its latest report, however, the G7’s international finance watchdog recorded significant improvements on the 2023 indicators. 

These include a better alignment of the country’s AML/CTF strategy with other high-risk offence policies, improving business supervision, strengthening investigation policies and prosecutions, and working closely together with NPOs.

The same can now be said about South Africa as well, with the country also being put on the list during FATF’s 2023 audit but now no longer subject to increased monitoring.

Both markets are instrumental to Africa’s rapidly developing gambling industry. According to Statista, the market in Nigeria is projected to reach $1.55bn in revenue by the end of 2025. High-profile operators present there include Betway, Bet9ja, Nairabet, and Betano.

Similarly, B2B gaming firm SOFTSWISS estimates that the South African market will reach around €3.63bn in GGR by the end of this December. Active operators include Ithuba Holdings and Hollywoodbets.

The countries’ removal from the FATF’s grey list means that international investors will be more likely to trust the local financial frameworks and therefore focus more of their resources there, while local companies will find it easier to collaborate with foreign entities.