The 2024 RMB “Where to Invest in Africa” report analyzes African countries based on their economic and business environments to identify the most promising investment destinations. The report combines economic performance metrics, such as GDP growth, with factors like governance, infrastructure, and operating environments to rank the top investment prospects across the continent.
Rand Merchant Bank’s Africa’s Top Investment Destinations
Seychelles emerged as the most attractive investment destination in Africa, driven by its stable economy, strategic location, and favorable business environment.
Mauritius ranked second, benefiting from its well-developed financial services sector, political stability, and strong regulatory framework.
Egypt remains a top destination due to its large economy, infrastructure investments, and consumer market, but it moved down in the rankings due to increased competition from smaller, more agile economies
South Africa continues to attract investment due to its advanced infrastructure, strong financial markets, and status as a gateway to the continent, although economic challenges persist.
Morocco holds a strong position due to its stable economic environment, ongoing reforms, and strategic geographical location. The country is also benefiting from investments in renewable energy and infrastructure.
Seychelles ranks 1st in RMB’s Where to Invest in Africa
The combined GDP of Mauritius and Seychelles is $38.04 billion; this is 7.98 percent of Nigeria’s GDP, 9.53 percent of South Africa’s GDP, and 9.83 percent of Egypt’s GDP. Hence, despite the fact that they are much easier places to conduct business, and their higher per capita GDP and purchasing power, Seychelles and Mauritius are ultimately not as attractive to investors as large countries like Nigeria.
Egypt is one of Africa’s larger economies that is improving its investment-readiness
Nigeria Ranks 9th
Nigeria, Africa’s largest economy, saw a decline in its attractiveness as an investment destination. This is primarily due to ongoing macroeconomic challenges, including foreign exchange volatility, inflation, and security issues. These factors have impacted investor confidence and led to a lower ranking compared to previous years.
However, Nigeria’s significant market size and ongoing reforms in sectors like oil and gas, infrastructure, and the digital economy continue to present long-term investment opportunities. The government’s efforts to improve the business environment, such as removing fuel subsidies and stabilizing the foreign exchange market, are positive steps but need to be sustained to rebuild investor confidence.
The report highlights that Nigeria’s potential remains substantial, particularly in sectors that can leverage its large, youthful population. However, unlocking this potential will require addressing governance challenges and improving policy implementation.
The continent’s biggest economy may improve its investment attractiveness due to its new National Unity Government that has the pro-market Democratic Alliance
Kenya maintains its position as a key investment destination, thanks to its stable political environment, strong infrastructure, and vibrant technology sector. It continues to serve as a hub for East Africa, attracting investments in various sectors, including fintech and agriculture.
Ghana is praised for its stable democracy and favorable business environment. The country’s mining, energy, and agriculture sectors are particularly attractive to investors, contributing to its strong ranking.
Rwanda continues to stand out for its pro-business reforms, stable governance, and ambition to become a regional technology and innovation hub.
The 2024 RMB “Where to Invest in Africa” report underscores the dynamic and diverse investment landscape across Africa. While Seychelles and Mauritius lead the rankings, Nigeria’s potential remains vast despite its challenges. Investors are encouraged to take a long-term view, carefully weighing the risks and opportunities in each market. The continent’s economic diversity and ongoing reforms offer numerous investment opportunities, but success requires navigating the complex and varied business environments present in different African countries:
Across the continent, the report identifies common challenges that hinder investment, such as political instability, weak governance, and inadequate infrastructure. These issues are exacerbated by global economic uncertainties, including rising interest rates and geopolitical tensions.
Despite these challenges, the report emphasizes that Africa remains a continent with significant opportunities. Many countries are undertaking reforms to improve their investment climates, with a growing focus on renewable energy, technology, and infrastructure development expected to drive future investment.
Vivian Nwaikwu
Vivian is a graduate of Biological Science with over two years experience as a social media manager creating engaging content for social and digital media.
