According to Engineering News, RMB‘s latest Where to Invest in Africa report reveals Egypt, South Africa, and Morocco maintaining their positions as the continent’s third, fourth, and fifth top investment destinations respectively. The 2025/26 edition, developed with GIBS, shows significant movement in other African economies, with Côte d’Ivoire rising eight places and Nigeria dropping nine positions. This stability among top performers masks deeper structural shifts occurring across the continent’s investment landscape.
Table of Contents
Understanding Africa’s Investment Transition
The continent’s investment narrative is fundamentally shifting from aid dependency to trade partnerships, reflecting a maturation of African economies that many analysts have long predicted. What makes this transition particularly significant is its timing – occurring amid global capital reallocation, declining foreign aid, and increasing geopolitical fragmentation. The report’s focus on “from aid to investment and trade” captures a broader economic evolution where African nations are increasingly positioning themselves as trade partners rather than aid recipients, a development that could reshape global economic relationships for decades.
Critical Analysis of Investment Rankings
While the stability of top rankings suggests established investment pathways, it also reveals concerning structural rigidities. South Africa‘s characterization as “stuck in neutral” despite its natural advantages highlights how political and policy uncertainty can undermine even the most promising markets. The significant drops and rises in rankings – particularly Nigeria’s nine-position fall – demonstrate how quickly currency devaluations and policy missteps can erode investor confidence. More critically, the report’s timing missed South Africa’s recent delisting from the FATF grey list, suggesting that current rankings may already be outdated for several key markets.
Industry and Market Implications
The concentration of investment attractiveness in North Africa and Southern Africa creates both opportunities and vulnerabilities for investors. Egypt and Morocco‘s consistent performance signals regional stability that could attract longer-term capital, while West Africa’s volatility suggests shorter investment horizons may be more appropriate. For multinational corporations, the divergence between small island economies like Mauritius and larger continental players indicates that investment strategies must be highly tailored rather than taking a pan-African approach. The introduction of three new analytical models in the report reflects growing sophistication in African market analysis, moving beyond traditional metrics to capture more nuanced risk factors.
Future Outlook and Challenges
The continent faces a critical juncture where successful transition from aid to trade could unlock unprecedented growth, but several challenges remain. Infrastructure gaps, particularly in energy and logistics, continue to constrain many markets’ potential. The report’s identification of trade opportunities outside North America suggests African nations are successfully diversifying economic partnerships, potentially reducing dependency on traditional Western markets. However, political stability remains a wild card, with “unprecedented” shifts in institutional integrity creating uncertainty even in historically stable markets. The coming year will test whether Africa can maintain this transition momentum amid global economic headwinds and internal political pressures.
