Africa’s investment landscape is undergoing a quiet transformation. Smaller, well-governed economies are steadily outperforming the continent’s traditional heavyweights as global investors prioritise stability, governance, and reform momentum.
The latest edition underscores how a blend of institutional strength and policy discipline continues to differentiate high-performing African markets.
According to RMB, the index ranks 31 African economies across 20 indicators grouped under four pillars: macroeconomic performance, market accessibility, innovation and stability, and human development.
While the top ranks remain relatively stable, the report notes that six countries shifted by five or more positions, driven largely by currency movements, revised data, or structural policy changes.
Island Economies Sustain Their Lead
At the top of the list, Seychelles and Mauritius retained their lead, reflecting a combination of sound fiscal management, low corruption levels, and resilient post-pandemic recoveries.
North Africa: Reform Momentum Builds
Further north, Morocco continues to chart a steady course, buoyed by preparations to co-host the 2030 FIFA World Cup and ambitious infrastructure expansion. The IMF projects growth of 3.5% in 2026, supported by major investments in transport networks, desalination plants, and renewable energy capacity.
Meanwhile, Egypt, holding third place, has benefited from reforms and renewed Gulf investment. The IMF forecasts 4.5% growth in fiscal 2025/26 as privatisation and exchange-rate flexibility enhance competitiveness and investor confidence.
Southern Africa: South Africa Lags Despite Market Gains
In contrast, South Africa, ranked fourth, faces persistent structural bottlenecks that continue to weigh on growth.
The IMF expects output to rise only 1.8% in 2026, the slowest among Africa’s major economies. However, improved investor sentiment has lifted equity markets, with the JSE All Share Index gaining 14.7% in the first half of 2025, its strongest start since 2006.
West Africa: Divergent Fortunes
Further west, Ghana’s economy is stabilising under IMF and World Bank programmes, with growth projected at 4.3% in 2026. Gradual disinflation and fiscal reforms have improved market perceptions, supported by stronger currency performance.
Similarly, Côte d’Ivoire climbed eight places, underpinned by efforts to diversify exports and increase domestic processing of cocoa and cashews. Its pioneering CFA franc-denominated bond issuance also signals deepening capital-market maturity.
By contrast, Nigeria experienced the sharpest fall in this year’s ranking, dropping from 9th to 18th place, as reforms to remove fuel subsidies and unify exchange rates triggered inflation and currency volatility. Even so, the IMF projects growth of 4.2% in 2026, reflecting gradual stabilisation following the country’s exit from the FATF grey list and renewed investor engagement.
East Africa: Stability Anchors Growth
Rounding out the top ten, Kenya remains East Africa’s economic anchor, with 5.1% growth projected in 2026. Fiscal tightening and new investment in green infrastructure are expected to support medium-term resilience and investor confidence.
Africa’s Next Growth Frontier
RMB concludes that Africa’s shift from aid to trade and investment marks a defining moment; one that places the private sector at the centre of the continent’s next phase of growth. The continent’s resilience, policy reform momentum, and demographic potential continue to position it as a key frontier for long-term global investors.
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