By: Patemoshela Lukolo
Africa remains an attractive destination for long-term investment despite global uncertainty, according to RMB’s Where to Invest in Africa 2025/26 report released this week.
The report, authored by RMB Chief Economist Isaah Mhlanga, outlines how political and economic changes across the globe are influencing investment decisions.
It introduces updated frameworks for assessing export potential, growth structures, and currency valuation across 31 African economies.
Mhlanga notes that 2024 was marked by a record number of national elections worldwide, resulting in policy shifts which affected economic stability. He compares the economic impact of such changes to natural shocks such as extreme weather or pandemics, saying that swift, data-based responses are essential.
According to the report, the World Uncertainty Index rose to its highest level since the COVID-19 pandemic, reflecting global volatility driven by trade policy shifts in the United States, renewed conflicts in regions such as Ukraine, Gaza, and Sudan, and the rapid growth of artificial intelligence technologies.
The report highlights a notable decline in global aid budgets, prompting African economies to shift focus from aid dependence to trade and investment.
The Organisation for Economic Co-operation and Development recorded a fall in official development assistance from advanced economies in 2024, with further reductions expected this year.
RMB’s analysis states that while emergency aid remains vital during crises, sustainable growth depends on productive investment and trade.
Despite these pressures, Africa attracted record levels of investment. In 2024, the continent received N$1.79 trillion in foreign direct investment (FDI), an increase of 75 percent from the previous year. Egypt led with N$647.5 billion, followed by South Africa, Morocco, and Tunisia. RMB notes that although this may fall short of the capital required for development, it reflects growing investor confidence.
The Where to Invest in Africa Index ranks 31 economies based on long-term fundamentals such as economic performance, market accessibility, stability, and human development. The top five investment destinations for 2025/26 are Seychelles, Mauritius, Egypt, South Africa, and Morocco. Seychelles and Mauritius maintain leading positions due to strong governance and policy stability, while Egypt remains the highest-ranked large economy.
At the lower end, Zimbabwe continues to face economic challenges, but has shown positive trends in sectors such as tourism, manufacturing, and mining.
Several countries recorded notable changes in their rankings. Côte d’Ivoire rose from 16th to 8th position, supported by strong GDP growth, expansion in domestic processing of cocoa and cashew nuts, and increased access to electricity. Zambia moved up five places as higher copper output, mine expansion, and debt restructuring improved economic performance.
Nigeria fell from 9th to the 18th position following currency reforms and the floating of the Naira. RMB illustrates that the adjustment led to a weaker exchange rate and higher inflation, but may strengthen fundamentals over time.
The report concludes that Africa’s medium-term outlook remains positive, supported by export diversification, industrial growth, and rising investment inflows.
RMB states that the continent’s ability to attract capital despite global volatility highlights its role as a key growth frontier for long-term investors.
