By Jean-Pierre A.
Africa’s growth is transitioning from aid dependency to investment-driven development, according to a new report released by RMB, which reveals that direct investment into the continent surged to a record 75 percent in 2024.
The report launched on 27 October by RMB-an African corporate and investment bank provides an understanding of the economic themes that will influence the macroeconomic developments across Africa, investment attractiveness rankings and drivers of each country’s performance.
The RMB’s report titled “Where to Invest in Africa 2025/26 ‘gives investors a comprehensive analysis of 31 countries, uncovering the underlying drivers of each country’s performance and informing their ranking.
The latest report looks into global and regional instability: elections in many African countries, policy uncertainty, currency and commodity shocks, declining foreign aid, and a redirection of global capital flows.
Samantha Singh-Jami, head of Africa research, strategy at RMB said in an interview with CNBC Africa, a business media outlet: “ the African continent has obviously been very reliant on aid, and we are kind of moving away from that, into trade and into investment,” adding : “I think so far the continent had not done badly.”
The report analyses 31 African countries which collectively represent about 90 % of Africa’s GDP and 83 % of its population. The recent report uses four main indicators namely: economic performance and potential, market accessibility and innovation, economic stability and investment, social and human development.
The leading 5 investment destination sin Africa are Mauritius, Seychelles, the first and second respectively. While Egypt ranks third, followed by South Africa, fourth and Morocco, firth.
The report findings show countries with high human development, strong institutions, political stability, good connectivity and market access have an edge. For instance, Seychelles and Mauritius rank highly despite their small size.
Larger economies with scale such as Egypt attract attention for manufacturing, services, and innovation potential, according to the latest data from RMB’s study.
Risks
The 2025/ 2026 report reveals economic stability & investment climate remain weak in many markets: currency risks, policy uncertainty, infrastructure deficits. Nigeria’s drop is tied to these risks.
RMB’s report states social/human development or market accessibility can lag even if economic potential is high. so “big opportunity” does not necessarily mean “low risk.”
Report authors said shrinking foreign aid and changing global capital flows mean African economies must increasingly attract private investment and trade rather than rely on traditional aid. However, they warn, this shift can expose countries to new risks and competition.
The report recommends investors to look not only at the “headline” big markets, but also at structural pillars: market size, accessibility, human capital, political/institutional stability.
For policy makers: the report implies that improving social/human development (education, health), making markets accessible, enabling innovation, and enhancing stability are critical to attracting investment.
The new report says the shift from “aid” to “investment and trade” means that countries need to reposition themselves as business-friendly, connected to global value chains, and with a credible long-term investment story.
The report recommends diversification. Even in highly ranked economies, there may be structural constraints. For instance, South Africa is an economy with scale and strong financial sector, but faces some headwinds.
Emerging markets with improvement trajectories may offer higher upside but also higher risk, observe the RMB’s researchers.
