A recent study by Rand Merchant Bank (RMB) indicates that Morocco’s rising popularity stems from steady economic conditions, strong foreign direct investment inflows, and its development into a key production center, especially for car manufacturing.
Industrial Policy Draws Capital North
Although South Africa has historically ranked among Africa’s premier investment locations and still draws strength from its advanced financial sector, better power reliability, and continuous policy adjustments, sluggish expansion has caused it to slip in the current assessment.
Evaluating 31 African Economies
The RMB report evaluates 31 African countries across 20 metrics grouped into four distinct pillars: economic performance and potential, market accessibility and innovation, investment climate, and social and human development. Seychelles, Mauritius, and Egypt secured the top three positions for the third consecutive year.
Nigeria Climbs Seven Places
Beyond the shifting hierarchy at the very top, several other nations climbed the rankings. Nigeria recorded one of the most notable improvements, climbing seven places following a difficult period of economic adjustment. According to RMB, Nigeria advanced because observers increasingly believe that policy shifts—such as ending fuel subsidies, freeing up foreign-exchange rules, and wider financial recalibrations—are establishing a foundation for lasting economic health.
The study pointed out that while market participants disagree on how quickly Nigeria will bounce back, there is now less uncertainty regarding the nation’s financial trajectory.
Côte d’Ivoire’s Upward Trajectory
Côte d’Ivoire continued its upward trajectory, rising from 16th place two years ago to seventh this year. Solid economic expansion, new infrastructure, consistent policy execution, and a growing oil and gas sector have driven its advancement, solidifying its status as a West African economic center.
Continental Pivot Toward Reform
| Country | Current Standing / Recent Movement | Key Growth Drivers |
|---|---|---|
| Morocco | Major manufacturing hub | Automotive manufacturing, macroeconomic stability, foreign direct investment |
| South Africa | Lost ground | Deep financial markets, energy security, economic reforms, slower growth |
