RABAT, Oct 27 – Morocco has overtaken South Africa to become Africa’s fourth-most attractive investment destination, reflecting its manufacturing strength, macroeconomic stability and ability to attract foreign direct investment, according to the latest rankings by Rand Merchant Bank (RMB).
The rankings highlight shifting investor perceptions across the continent, with Morocco gaining ground through its expanding industrial base while South Africa’s slower economic growth weighed on its position. Nigeria also recorded a significant improvement, climbing seven places following reforms aimed at restructuring its economy and foreign-exchange market.
Morocco’s automotive manufacturing sector has been a key driver of its growing appeal, helping establish the country as an important industrial hub. Its macroeconomic stability and ability to attract substantial foreign direct investment have further strengthened its position.
“The country has emerged as one of Africa’s leading manufacturing hubs, particularly in automotive production, while maintaining macroeconomic stability and attracting substantial foreign direct investment,” the report said.
South Africa continues to benefit from deep financial markets, improving energy security and ongoing economic reforms. However, slower growth has contributed to its loss of ground in the latest rankings, allowing Morocco to move ahead.
The change underscores how investment attractiveness depends not only on established financial markets and institutional capabilities, but also on growth prospects, industrial competitiveness and the ability to attract capital into productive sectors.
Nigeria climbs seven places after economic reforms
Nigeria recorded one of the most significant improvements in the rankings, rising seven places after a period of economic adjustment under reforms that included the removal of fuel subsidies, foreign-exchange liberalisation and broader macroeconomic changes.
RMB attributed the improvement to growing confidence that the reforms could lay the foundation for more sustainable economic growth. Although investors remain divided over the pace of Nigeria’s recovery, the report noted that there is greater clarity about the country’s economic direction.
The improved ranking signals a shift in investor perceptions, but it does not establish that the reforms have fully resolved Nigeria’s economic challenges. The pace of recovery and the effects of policy changes on inflation, household purchasing power and business costs remain important considerations for investors.
Côte d’Ivoire strengthens its position
Côte d’Ivoire continued its upward trajectory, rising from 16th place two years ago to seventh in the latest rankings.
Its progress reflects strong economic growth, infrastructure development, disciplined policy implementation and expanding hydrocarbon production. These factors have helped strengthen its position as a regional economic hub in West Africa.
The country’s rise also highlights the growing role of infrastructure investment and energy-sector development in shaping the continent’s investment landscape.
Seychelles, Mauritius and Egypt retained the top three positions for the third consecutive year, according to RMB.
How the rankings assess African markets
RMB’s rankings cover 31 African countries and assess their investment attractiveness using 20 metrics grouped into four pillars: economic performance and potential, market accessibility and innovation, investment climate, and social and human development.
The framework combines indicators of economic conditions with measures of market access, business environments and broader development factors to compare the relative attractiveness of African economies.
The latest results point to a changing investment landscape in which manufacturing capacity, macroeconomic stability, policy implementation and growth prospects are influencing countries’ relative positions. Morocco’s rise, South Africa’s decline and Nigeria’s improvement illustrate the different economic factors shaping investor assessments across the continent.
