Johannesburg:The latest "Where to Invest in Africa 2026/27" report by Rand Merchant Bank (RMB) evaluates 31 African economies, using 20 indicators to rank their investment potential. The report highlights Seychelles, Mauritius, and Egypt as the top three investment destinations, maintaining their positions due to strong institutional and economic conditions.
According to Africa News Agency, Morocco has surpassed South Africa to secure fourth place, driven by industrialization, export diversification, and infrastructure investment, notably in the automotive sector. South Africa, now in fifth, still benefits from significant structural advantages despite slower economic growth. The report emphasizes the importance of growth, credible policy, and resilience to shocks in determining Africa's strongest investment markets.
Nigeria's significant improvement, moving from 18th to 11th place, is attributed to economic reforms such as the removal of fuel subsidies and foreign-exchange market liberalization. These measures are starting to stabilize the economy, despite ongoing challenges like oil dependence and limited economic complexity. Côte d'Ivoire has also made substantial progress, climbing to seventh place due to growth in infrastructure and diversification beyond cocoa.
Conversely, Senegal has dropped to 19th place, reflecting concerns over fiscal credibility and public debt. The report introduces a new Resilience and Vulnerability Matrix, assessing how well economies can absorb shocks. South Africa, Morocco, and Rwanda demonstrate strong resilience, while other countries remain vulnerable due to factors like export concentration and energy dependence.
RMB cautions that the ranking is not an automatic investment recommendation. Factors such as market size, policy credibility, regulatory predictability, and currency stability are crucial for investors. The report underscores the importance of credible institutions and infrastructure in converting Africa's potential into sustainable investment.
The findings suggest that while countries like Morocco, Nigeria, and Côte d'Ivoire show promising improvements, others like Senegal face challenges. Investors are encouraged to consider not just current economic performance but also the strength of national economic trajectories. The report sends a clear message to governments attracting capital requires building the necessary institutions and resilience to ensure long-term investment success.
Source Africa News Agency