The report highlights that recent geopolitical developments at the international level and changes in the local political environment have had measurable effects on African economies. Consequently, the ranking of approximately two-thirds of the countries studied has changed compared to the previous edition.
The Seychelles and Mauritius are the best investment destinations in Africa in 2025 and 2026, ahead of the continent’s major economic powers such as South Africa, Nigeria and Egypt, according to a report published on Monday, October 27 by the South African financial services holding company Rand Merchant Bank (RMB), in collaboration with the Gordon Institute of Business Science (GIBS).
Titled “Where to Invest in Africa 2025/26”, the report analyzes the factors shaping the investment landscape in 31 countries representing 90% of the continent’s GDP, 83% of its population and 61% of its total area, based on 20 distinct indicators.
These indicators include, among others, GDP, GDP per capita, population size, urbanization rate, innovation, connectivity, exchange rate stability, levels of corruption, political stability, human development, inflation, and income inequality.
The indicators taken into consideration are grouped into four pillars: economic performance and potential; market accessibility and innovation; economic stability and investment climate; social and human development.
The Top 5 remains unchanged from the 2024/25 edition of the report. Seychelles and Mauritius retain their positions. Despite their very small populations and land areas, these two island nations remain highly attractive to investors, thanks in particular to high GDP per capita, a good level of human development, a low prevalence of corruption, and controlled inflation.
Egypt occupies the 3rd position, ahead of South Africa, Morocco, Ghana, Algeria, Ivory Coast and Tanzania, while Kenya closes the Top 10.
(See the ranking of the 31 African countries studied below).
Ivory Coast makes the strongest progress
The report focuses on fundamentals and structural elements that are expected to evolve slowly over time, so country rankings generally remain relatively stable from year to year. However, the 2025/2026 ranking clearly reflects the impact of recent international geopolitical developments and political changes on the continent. While 11 countries have maintained their position compared to last year, 13 have improved their ranking and 7 have fallen.
“Elections in several countries, episodes of unrest and political uncertainty, as well as global fragmentation and realignments, have all had measurable macroeconomic effects,” said Isaah Mhlanga, chief economist at RMB, quoted in the report. He added, “Changes in the political environment and declining foreign aid, coupled with the reorientation of global capital flows, are reshaping how African economies interact with the world.”
Côte d’Ivoire saw the most significant improvement in the rankings, rising from 16th to 8th place, thanks in particular to robust economic growth and sustained efforts in economic diversification. Other notable gains were made by Zambia (+5 places), Algeria (+3), and Tanzania (+3).
Nigeria recorded the steepest decline, falling nine places from the previous year’s ranking to 18th. This drop is largely attributed to the painful reforms implemented by President Bola Tinubu’s administration, which have led to economic hardship, including soaring inflation. Other countries also saw significant declines in the rankings compared to the previous year, notably Senegal (-6), Tunisia (-5), and Mozambique (-5).
The best African countries to invest in in 2025 and 2026:
Elaborating on investment opportunities in these African countries for 2025 and 2026 reveals a promising landscape driven by economic reforms, infrastructure development, sectoral growth, and governance improvements. Here’s an in-depth look for investors seeking strategic positioning in these markets:
Seychelles
Seychelles is positioned as a resilient economy with a focus on tourism, financial services, and green energy. The government’s commitment to economic diversification, coupled with macroeconomic stability, makes it a safe haven for offshore banking, luxury tourism, and sustainable investments, especially in eco-friendly projects. Its strong institutional frameworks provide a conducive environment for private equity and foreign direct investments.
Mauritius
Known as Africa’s financial hub, Mauritius continues to attract international investors through its stable political climate, favorable tax regime, and robust financial sector. Opportunities abound in fintech, renewable energy, and logistics, bolstered by ongoing reforms. Its strategic positioning provides access to markets across Africa, Asia, and beyond, making it ideal for regional headquarters and financial services.
Egypt
Egypt is shifting towards an export-oriented growth model with significant investments in infrastructure, energy, and manufacturing. Major reforms are underway to improve the business climate, including currency stabilization and deregulation. Sectors like renewable energy (solar and wind), construction, and agribusiness offer diverse opportunities, supported by government incentives and a large domestic market.
South Africa
Despite sluggish growth, South Africa’s well-established financial markets and diversified industrial base provide opportunities in renewable energy, mining, and technology. Its relatively stable regulatory environment and improving consumer market make it suitable for investments in green infrastructure, auto manufacturing, and technology start-ups, especially in urban centers like Cape Town and Johannesburg.
Morocco
Morocco has become a regional hub for green energy, manufacturing, and logistics, leveraging its proximity to Europe and Africa. Significant investments are underway in solar and wind power, EV supply chains, and port infrastructure, supported by comprehensive reforms and free trade agreements. The country’s strategic initiatives position it as an energy transition leader and manufacturing powerhouse.
Ghana
With rapid economic growth driven by non-oil sectors like agriculture, manufacturing, and services, Ghana offers ample opportunities in infrastructure, renewable energy, digital finance, and agribusiness. Its political stability and reforms towards fiscal consolidation strengthen investor confidence, making it a promising country for long-term growth in consumer markets and natural resources.
Algeria
Algeria’s economy is gradually diversifying away from oil dependence, with government-led reforms targeting manufacturing, agriculture, and renewable energy. Infrastructure modernization and privatization initiatives create avenues for foreign investment, particularly in energy transition projects, food security, and industrial development.
Ivory Coast
As West Africa’s emerging economic star, Ivory Coast boasts robust growth, especially in agriculture, infrastructure, and energy. Peaceful political transitions and IMF-backed reforms have improved the economic climate, attracting investments in ports, urban transit, and digital services. Its expanding middle class and regional trade position enhance its appeal.
Tanzania
Tanzania is benefiting from infrastructure upgrades, mineral exports, and agricultural development. With projects in natural gas, coffee, and textiles, it offers sector-specific investment potential, especially as government policies aim to attract foreign direct investment in energy, tourism, and manufacturing.
Kenya
Kenya’s leadership in fintech, mobile technology, and digital infrastructure drives its attractiveness. Large-scale projects in energy, transport, and agribusiness, supported by government incentives, position Kenya as East Africa’s investment hub. Its diversified economy offers opportunities in tech, logistics, and renewable energy .
Ethiopia
Ethiopia’s targeted reforms and infrastructural expansion focus heavily on industrial parks, textiles, and renewable energy, notably geothermal. While political stability remains crucial, its large labor force and government incentives make it appealing for manufacturing and export-driven industries.
Tunisia
Although facing economic challenges, Tunisia’s strategic location and improving reforms in tourism, ICT, and agribusiness present pockets of opportunity. Efforts to stabilize the economy and promote private sector-led growth remain ongoing.
Botswana
Known for political stability and prudent fiscal management, Botswana is attractive for diamond mining, eco-tourism, and financial services. Its resilient macroeconomic policies foster investor confidence in sustainable and resource-driven growth.
Senegal
Senegal’s political stability, expanding port facilities, and offshore oil and gas development make it an emerging energy and infrastructure hub in West Africa. Its proactive reforms and regional integration plans bolster prospects in digital, tourism, and logistics sectors.
Zambia
Post-debt restructuring has restored macroeconomic stability, turning Zambia into a prime candidate for investments in copper, cobalt, and green minerals. Policies encouraging exploration and sustainable mining, combined with rising global demand for battery minerals, enhance its regional significance.
Rwanda
Rwanda is a frontrunner in governance and ease of doing business within Africa, thanks to its streamlined regulations, investor-friendly policies, and transparent governance. The country is rapidly advancing in digital innovation, making it a hotspot for tech startups, especially in fintech and agritech. Investments in climate technology and smart city infrastructure are prioritized through government incentives, reflecting Rwanda’s vision to become an innovation-driven economy by 2030. Its low corruption reputation reduces operational risks, positioning Rwanda as an ideal destination for impact-focused and tech-driven investors committed to sustainable development.
Namibia
Namibia presents a compelling investment case, anchored by its stable political environment and rich natural resources, particularly uranium, diamonds, and other minerals. In 2025, the government pushed forward its nuclear energy ambitions, aiming to develop the continent’s first nuclear power plant. This is facilitated by Namibia’s uranium reserves and partnerships with international players such as Russia’s Rosatom and China.
Additionally, Namibia aggressively expands solar energy with multiple solar parks contributing to a significant grid boost expected in 2025, under the Southern African Power Pool (SAPP) program. This solar expansion supports Namibia’s ambitious target to increase renewable energy’s share to 70% of the national grid by 2030. This holistic approach presents diversified opportunities in mining, renewable energy, and infrastructure, making Namibia especially attractive for investors looking at long-term, sustainable ventures.
Nigeria
Nigeria, Africa’s largest economy, continues reforming to reduce its dependence on oil by promoting agriculture, technology, and energy sectors. It boasts a large domestic market and a rapidly growing tech ecosystem, particularly in Lagos—Africa’s tech hub. Key investment areas include fintech, agribusiness, renewables, and infrastructure. While political and security issues pose challenges, ongoing reforms and the government’s commitment to diversification enhance the country’s long-term investment appeal.
Uganda
Uganda’s economy hinges on agriculture, infrastructure development, and energy generation. Investments are particularly promising in hydropower, agro-processing, and eco-tourism due to the country’s abundant natural resources. Its young and growing population offers a dynamic consumer base, supported by government incentives aimed at fostering private sector-led growth.
Benin
Benin is strategically positioned as a gateway to West African markets, with significant investments in port infrastructure improving trade efficiency. The country’s integration within regional trade agreements expands opportunities in logistics, agribusiness, and light manufacturing. Ongoing improvements in infrastructure and regulatory frameworks boost its appeal for investors seeking entry into the West African Economic and Monetary Union (WAEMU) region.
Gabon
Gabon’s economy remains reliant on oil and timber, but recent reforms aim to diversify into mining, agriculture, and renewable energy. The government actively pursues regional integration policies and sustainable resource management to solidify economic diversification, opening up new investment lanes in green energy and artisanal mining.
Madagascar
Madagascar is endowed with rich natural resources, providing investment opportunities in mining (notably gemstones and nickel), agriculture, and eco-tourism. Its economic potential is influenced by political stability and reforms aimed at improving the business climate and attracting foreign direct investment.
Angola
Recovering from oil price volatility, Angola is focusing on diversifying its economy toward renewable energy, agribusiness, and mining. Significant reforms are underway to improve the business climate and attract foreign investment, with infrastructure projects and resource development at the forefront of growth strategies.
DR Congo
The vast mineral wealth of DR Congo, including cobalt, copper, and other critical minerals essential for global industries, forms the backbone of its investment appeal. However, political stability and security improvements are essential for unlocking full investment potential, making resource governance a key consideration for investors.
Malawi
Malawi’s economy is predominantly agricultural, offering investment avenues in agribusiness, tourism, and renewable energy. Increasing macroeconomic stability and reform efforts are slowly improving the investment climate, with growing focus on value addition in agriculture and green energy deployment.
Cameroon
Cameroon’s diversified economy provides investment opportunities across oil, agriculture, manufacturing, infrastructure, energy, and digital sectors. Government reforms aimed at liberalizing energy and telecommunications sectors enhance the investment ecosystem.
Congo-Brazzaville
With its oil sector stabilizing, recent reforms support investments in minerals, energy, and infrastructure expansion. The government’s reform agenda focuses on improving governance and business environment, creating opportunities in mining and energy infrastructure development.
Mozambique
Natural gas projects underpin Mozambique’s future growth prospects, complemented by agriculture and mining sectors. Political stabilization and international partnerships are critical to capitalizing on these sectors’ potential.
Eswatini
Eswatini’s small but stable economy offers opportunities in manufacturing, agriculture, and regional trade, leveraging proximity to South Africa. Its business environment appeals to investors targeting niche manufacturing and agro-processing markets.
Lesotho
Lesotho focuses on textiles, agriculture, and renewable energy, benefiting from regional trade agreements within the Southern African Development Community (SADC). Its geographic location near South Africa enhances cross-border trade and investment potential.
Zimbabwe
Economic stabilization efforts in Zimbabwe include currency reforms and inflation control, creating windows for investment in agriculture, mining, and tourism. Challenges persist, but ongoing reforms and untapped resource wealth present long-term growth opportunities.
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