Africa’s investment landscape going into 2026 remains dynamic, blending stable, policy-friendly smaller economies with larger, growth-oriented markets. While Africa has seen a foreign direct investment (FDI) rebound in 2024–2025, driven mostly by reforms, resource diversification, and infrastructure pushes, attractiveness varies by sector and risk tolerance as well as policy alignment with their business focus.
The Rand Merchant Bank (RMB) “Where to Invest in Africa 2025/26” report provides one of the most comprehensive rankings, evaluating 31 countries on economic performance, market size, and operating environment. It highlights smaller, well-governed nations topping the list due to stability and investor-friendly policies, while larger economies like Egypt and Morocco score high on growth potential and reforms.
The RMB top rankings for 2025/26 are:
| Rank | Country | Key Highlights from RMB Report |
|---|---|---|
| 1 | Seychelles | Top due to fiscal management, low corruption, and post-pandemic resilience. |
| 2 | Mauritius | Fiscal stability, sustainable finance hub, strong financial services reach. |
| 3 | Côte d’Ivoire | Jumped 8 places; export diversification (cocoa/cashews), capital market maturity. |
| 4 | Egypt | Reforms and Gulf investments; projected 4.5% growth in 2025/26. |
| 5 | South Africa | Structural challenges but improving sentiment; 1.8% growth projected. |
| 6 | Morocco | Infrastructure boom (2030 World Cup prep), renewables, 3.5% growth. |
| 7 | Ghana | Stabilizing under IMF programs; 4.3% growth, disinflation. |
| 8 | Nigeria | Dropped due to inflation/volatility but stabilizing; 4.2% growth. |
| 9 | Kenya | East Africa anchor; 5.1% growth, green infrastructure investments. |
Data Driven Perspective:
Aside from the above rankings, Mauritius, Botswana, and Morocco are frequently touted as good investment destinations and Data largely supports this: Mauritius ranks #2 in RMB and consistently leads in governance and ease of doing business. Morocco is a solid #6, benefiting from strategic location and investments. Botswana, however, does not appear in the RMB top 10—likely because rankings weight market size heavily, and Botswana’s smaller GDP limits its score despite excellence in stability and governance.
Below we take a data-based comparison of key countries (including Botswana and Rwanda for context, as Rwanda often ranks high in reforms). Metrics align with the following criteria: stable economy (growth/inflation), investment-friendly policies (composite from RMB/ease of business), low crime (Global Peace Index-derived safety rankings for Africa), reasonable tax (statutory corporate tax rates, Africa avg. around 27%), stable currency (low inflation/pegged systems), skilled workforce (proxied by Human Development Index/HCI where available), infrastructure (World Bank LPI 2023 overall score), and affordable energy/basic costs (business electricity USD/kWh, Q3 2025 data).
| Country | RMB Rank | Safety Rank (Africa) | Corp. Tax Rate (%) | Electricity (USD/kWh) | LPI Score (Infra Quality) | Approx. Inflation 2025 (%) | Key Strengths/Weaknesses |
|---|---|---|---|---|---|---|---|
| Mauritius | 2 | 1 | 15 | 0.135 | 2.5 | ~3-4 (stable) | Top in policies, safety, workforce (high HDI); stable currency; higher energy costs. |
| Seychelles | 1 | Top 5 | ~25-33 | N/A | N/A | Low (~3%) | Fiscal stability, low corruption; small market limits scale. |
| Botswana | Not top 10 | 2 | ~25 | N/A | 3.1 | ~3-5 (very stable pula) | Excellent stability, low crime, good infrastructure; skilled public sector; smaller economy. |
| Morocco | 6 | Mid-tier | 34 | 0.109 | ~3.0 (strong) | ~2-4 | Improving infrastructure, renewables (affordable energy), proximity to Europe; higher tax. |
| Egypt | 4 | Lower | 22.5 | 0.037 (cheapest) | 3.1 | ~ 10-15 (elevated) | Large market, cheap energy, reforms; currency/inflation volatility. |
| Côte d’Ivoire | 3 | Mid-tier | ~25-30 | N/A | ~2.8 | ~3-5 | Fast growth, diversification; improving policies. |
| South Africa | 5 | Lower | 27 | 0.097 | 3.7 (Africa #1) | ~4-5 | Best infrastructure, skilled workforce; crime/energy reliability issues. |
| Rwanda | Not top 10 | Top 5 (low crime index) | 30 | ~0.15-0.20 | 2.8 | ~5 | Top reformer, skilled young workforce; small size, landlocked. |
Sources: RMB 2025/26; Global Peace Index 2025 rankings (Mauritius/Botswana lead Africa); World Bank LPI 2023; GlobalPetrolPrices (2025); Tax Foundation/PwC averages; IMF projections for inflation/growth.
Breakdown of Detail by Criteria
- Stable Economy: Larger economies like Egypt (4.5% projected growth) and Kenya (5.1%) lead, but smaller ones like Mauritius and Botswana have lower debt and consistent performance. Inflation is lowest in pegged/managed currencies (Botswana pula, Seychelles).
- Investment-Friendly Policies: Mauritius and Seychelles dominate due to low corruption, ease of starting business, and incentives (e.g., Mauritius’ 15% tax with global business licenses effectively lower). Rwanda excels in reforms but ranks lower in size-weighted indices.
- Low Crime Rate: Mauritius and Botswana are Africa’s safest (Global Peace Index), with low violent crime and political stability. South Africa and Nigeria lag significantly in this criteria.
- Reasonable Tax Levels: Mauritius offers the lowest effective rates (15%), attracting holding companies. Most others hover 25-34%; Africa’s average is high globally but competitive with incentives.
- Stable Currency: Botswana’s pula (basket-pegged) and Mauritius’ rupee are among the most stable, with low volatility. Egypt and Nigeria have faced devaluations.
- Skilled Workforce: Mauritius and South Africa score high on HDI/education access. Kenya leads recent HCI rankings due to reforms; Rwanda has a young, trainable population.
- Good/Improving Infrastructure: South Africa tops Africa (LPI 3.7), followed by Botswana/Egypt. Morocco invests heavily (ports, high-speed rail, desalination). Côte d’Ivoire and Rwanda show rapid improvements.
- Affordable Energy/Basic Costs: Egypt stands out with the lowest business electricity (~0.037 USD/kWh). Morocco benefits from renewables; South Africa/Mauritius are pricier due to reliability issues or import dependence.
Overall, data confirms Mauritius as a standout investment destination, balancing nearly all criteria exceptionally well, making it ideal for financial services, tech, and tourism investments. Botswana matches or exceeds it on stability, safety, and governance but appeals more to mining/resource investors due to size. Morocco offers a compelling mix for manufacturing/renewables, with strong growth trajectory. Larger markets like Egypt and Côte d’Ivoire provide scale and affordability but higher risks.
While there is no country perfects all eight criteria, these lead for balanced, long-term returns in 2026. Investors should also look to align with sector needs – e.g., energy-intensive in Egypt, low-risk in Mauritius/Botswana.
