Seychelles, Mauritius named Africa’s top investment destinations
Two island nations, the Seychelles and Mauritius, have been ranked as Africa’s best investment destinations for 2025 and 2026, outperforming continental giants such as South Africa, Nigeria and Egypt.
This is according to a new report, ‘Where to Invest in Africa 2025/26,’ published on Monday, October 27, by South African holding company Rand Merchant Bank (RMB) and the Gordon Institute of Business Science (GIBS).
The report examines 31 African economies that together account for 90 per cent of the continent’s GDP, 83 per cent of its population, and 61 per cent of its land area.
Its analysis draws on 20 indicators, including GDP, GDP per capita, population size, urbanisation, innovation, connectivity, exchange rate stability, corruption, political stability, human development, inflation, and income inequality.
These indicators are grouped into four key pillars: economic performance and potential; market accessibility and innovation; economic stability and investment climate; and social and human development.
The Top 5 rankings remain unchanged from the 2024/25 edition, with the Seychelles and Mauritius maintaining their lead.
Despite their small populations and limited land areas, the two island nations continue to attract investors thanks to high GDP per capita, strong human development, low corruption, and well-controlled inflation.
Egypt holds third place, followed by South Africa, Morocco, Ghana, Algeria, Côte d’Ivoire, and Tanzania, with Kenya completing the Top 10.
The report focuses on structural factors that tend to evolve slowly, which means rankings usually remain stable from year to year.
However, the 2025/26 edition reflects the measurable impact of recent geopolitical shifts and political developments across the continent. Eleven countries maintained their positions, 13 improved, and seven fell.
“Elections across multiple countries, episodes of unrest and policy uncertainty, and the global fracturing and reorientation have all had measurable macroeconomic effects,” said Isaah Mhlanga, RMB’s chief economist, in the report.
He added: “Changes in the political and the subsequent policy environment, declining foreign aid, and the redirection of global capital flows are reshaping how African economies engage with the world, moving from dependence towards resilience and self-determination.”
Côte d’Ivoire posted the biggest gain, climbing eight places from 16th to 8th, supported by strong economic growth and steady progress in diversification. Zambia rose five places, while Algeria and Tanzania each advanced three.
Nigeria suffered the sharpest decline, dropping nine places to 18th, mainly due to the painful reforms launched by President Bola Tinubu’s administration, which have triggered economic hardship and soaring inflation. Other countries that experienced notable declines include Senegal, down six; Tunisia, down five; and Mozambique, down five.
