The Rand Merchant Bank (RMB) report, “Where To Invest in Africa 2025/26,” sheds new light on the best investment destinations in Africa for the next two years. This edition marks a major turning point, highlighting the continent’s transition from dependence on foreign aid to a growth model based on investment, trade, and innovation, within a context of economic reforms and an increased pursuit of stability.

Seychelles and Mauritius Lead the Ranking

Against all expectations, the small island economies of Seychelles and Mauritius dominate the 2025/26 ranking, surpassing economic giants like South Africa, Nigeria, and Egypt. Their success is based on remarkable fiscal stability and post-pandemic resilience, which reassure international investors.

These two nations perfectly illustrate the desired shift for investors: prioritizing stability and good governance over sheer market size.

The Driving Forces of the Rankings

The report analyzes 31 African countries, which collectively represent 90% of the continent’s GDP, using a rigorous methodology based on 20 indicators across four main pillars:

• Macroeconomic Performance
• Market Accessibility and Innovation
• Economic Stability and Investment Climate
• Social and Human Development

The ranking reflects a comprehensive overview of opportunities and risks. These indicators include GDP growth, exchange rate stability, corruption, political stability, and human development, all essential for assessing a healthy investment environment.

Why Côte d’Ivoire and Morocco Stand Out

Besides the islands, countries like Côte d’Ivoire are gaining ground, climbing eight places in the ranking, thanks to bold structural reforms and significant infrastructure investments. Morocco, in third place, benefits from growth driven by supportive economic measures and a continued favorable business climate.

These countries demonstrate a remarkable ability to combine domestic reforms with openness to international flows, creating conditions conducive to sustainable growth.

Challenges for South Africa and Nigeria

In contrast, South Africa, despite its gains in the stock market, faces growth constraints that are hindering its relative attractiveness. Nigeria, meanwhile, has dropped nine places in this ranking, primarily due to a series of complex economic reforms that are generating temporary uncertainty among investors. These dynamics illustrate the complexity of African economic environments, where political and economic transitions can cause significant fluctuations in market confidence.

What about Madagascar?

According to the Rand Merchant Bank’s 2025/26 report on investment in Africa, Madagascar is ranked among African countries with medium investment potential, but still suffers from structural problems that hinder its progress.

Ranked 22nd out of 31 countries analyzed, the national economy is growing at a moderate pace, supported by services, export agriculture, and tourism, with a projected growth rate of 3.8% for 2025 according to the International Monetary Fund (IMF). However, bureaucratic hurdles, a lack of infrastructure, and dependence on international aid continue to affect the country’s attractiveness to foreign investors.

The Continent’s Transition: From Aid to Investment and Trade

A key theme of the report is Africa’s economic transformation, shifting from an aid-dependent approach to models based on private investment, trade, and innovation. This transition is fueled by significant elections, policy adjustments, and strategic choices aimed at economic resilience and self-reliance. Priority is now being given to sustainable development, entrepreneurship, and regional integration—essential elements for attracting capital and supporting long-term inclusive growth.

Future Prospects for Investors

For investors, this report is a valuable strategic tool that helps target the most promising countries and sectors while minimizing risk. The rise of small, stable economies across the continent underscores the need to revise traditional evaluation criteria.

Traditionally focused on market size, Africa is prioritizing institutional quality and sustainability. Thus, beyond growth figures, mitigating risks related to governance and political stability is becoming a key success factor in Africa.

This detailed overview from the report “Where to Invest in Africa 2025/26” highlights the new realities of a continent undergoing profound transformation, offering economic actors a clear vision of investment opportunities in a changing global environment.