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Where to Invest in Africa: A Ranking of the Top 10 Countries

Where to Invest in Africa: A Ranking of the Top 10 Countries

  • South Africa and Mauritius remain the top two African investment destinations in 2023, with scores above 70.
  • Nigeria, Uganda, and Namibia complete the top five, with scores above 60.
  • Egypt has fallen out of the top 10 due to rising interest rates in advanced economies.

Africa is a continent with a wealth of natural resources and a growing economy, making it an attractive investment destination. However, it is important to do your research before investing in any country, as there are risks involved.

The Absa Africa Financial Markets Index (AFMI) is a useful tool for assessing the investment attractiveness of African countries. It measures progress in the development of capital markets and provides individual countries with guidance on how to attract international investment.

For the second year in a row, the majority of AFMI countries have improved their scores. Zimbabwe and Rwanda saw the biggest improvements, with each country gaining almost 2 points. Zimbabwe has incorporated climate risks into financial stability regulation, while Rwanda is working with multilateral organisations to improve market standards for green investments.

However, progress has not been uniform across the index. Rising interest rates in advanced economies have led to currency depreciation and capital outflows in many African countries.

Egypt has been particularly hard hit, with its overall score falling by 3 points. It now ranks outside the top 10. Overall scores have also declined in South AfricaNigeria, and Uganda, although they all remain in the top five, along with Mauritius and Namibia.

Based on the new methodology, only the top five countries score above 60. South Africa and Mauritius remain the only countries to score above 70, as has been the case since 2019. This suggests that there is much room for improvement across the continent.

The Best African Countries to Invest in 2023

Rank (2023)CountryScore 2023Score 2022Comments
1South Africa8889Lower pension assets in dollar terms weigh on score
2Mauritius7777Rise in sovereign and corporate credit ratings
3Nigeria6768Foreign exchange shortages and rising inflation reduce score
4Uganda6364Fall in FX reserves and liquidity
5Namibia6363Large pension assets but decline in fixed-income market
6Botswana5958New incentives for ESG asset issuance lift score
7Kenya5960Lower FX reserves and market liquidity
8Morocco5857New climate stress testing and higher FX liquidity
9Ghana5859Deterioration in FX reserves and price stability
10Tanzania5555Improved product diversity with sukuk bond issuance

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