Key insights from RMB’s report

In a world local weather marked by political shifts and financial uncertainty, Rand Service provider Financial institution’s (RMB) The place to Put money into Africa 2025/26 report gives a significant roadmap for capital allocation throughout the continent. Analysing 31 African economies, which collectively account for 90% of the continent’s GDP, the report paints an image of Africa in decisive transition—shifting away from assist dependency in direction of self-sustaining progress pushed by commerce, funding, and financial diversification.

Two fashions of success

The general rankings reveal two distinct paths to success. For the second consecutive yr, the Seychelles and Mauritius occupy the highest positions. Their dominance rests on high quality moderately than scale, mirrored within the continent’s highest scores in GDP per capita, human improvement, and institutional energy. These components make them particularly enticing for high-value sectors reminiscent of finance and tourism.

Following them are the bigger, extra diversified economies of Egypt, South Africa, and Morocco. Egypt’s third-place rating is especially noteworthy. Regardless of the short-term disruption attributable to the 2024 foreign money float, which triggered a 60% devaluation, the nation continues to draw overseas direct funding. Megaprojects reminiscent of Ras El Hekma, alongside a strategic push into digitalisation, underpin Egypt’s sturdy long-term outlook.

South Africa, dwelling to the continent’s largest economic system, is described as “economically caught,” grappling with entrenched challenges together with excessive unemployment and vitality shortage. Nonetheless, its potential removing from the Monetary Motion Activity Pressure’s “gray checklist” factors to an enchancment in its worldwide standing.

Reform and resilience

The report highlights probably the most dynamic tales in Africa by way of vital shifts within the rankings, largely pushed by coverage reforms.

The Côte d’Ivoire emerges as a standout climber, leaping eight locations to eighth place. This progress displays sustained GDP progress exceeding 6% and a strategic pivot from exporting uncooked agricultural commodities to home processing. Initiatives to course of cocoa and cashews domestically have created lots of of hundreds of jobs, whereas new oil and fuel manufacturing is predicted to diversify the economic system additional.

In distinction, Nigeria skilled the most important decline, falling 9 locations to 18th. This drop stems from daring financial reforms. The unification of alternate charges prompted a pointy naira devaluation, decreasing GDP in US greenback phrases, whereas the removing of gas subsidies spurred inflation. The report frames these short-term difficulties as obligatory recalibration for long-term stability, geared toward stimulating non-oil sectors. The current commissioning of the Dangote Refinery is highlighted as a transformative step in direction of vitality self-sufficiency.

Three forward-looking frameworks

The report’s biggest worth lies in its introduction of three analytical frameworks designed to look past present information to future potential.

The Export Potential Mannequin identifies untapped commerce alternatives, estimating that South Africa might add $75 billion to its annual exports by 2029. A key perception is that a lot of Africa’s export potential lies exterior america, emphasising the significance of market diversification to strengthen financial resilience.

The Progress Archetypes framework categorises international locations based on present account balances and funding charges, yielding 4 distinct sorts. The perfect “Homegrown Builders,” reminiscent of Nigeria and Zambia, fund funding by way of export earnings. On the different excessive, economies “Caught in Impartial,” together with Malawi and Namibia, battle with low funding and commerce deficits, requiring strategic intervention to interrupt the cycle.

The Forex Valuation, or “Bang for Buck,” mannequin assesses currencies by truthful worth and basic energy. It classifies them into archetypes such because the “Fortress” (sturdy however costly) or the “Coiled Spring” (undervalued with sturdy fundamentals), offering buyers with a nuanced lens for evaluating foreign money danger and alternative.

RMB’s WTIIA 2025/26 report concludes that Africa is navigating a path of resilient transition. The decline of assist is forcing a obligatory, if difficult, shift in direction of investment-led progress. The rankings shouldn’t be seen as a easy scoreboard however as a platform for deeper evaluation, demonstrating that success might be discovered within the stability of Mauritius, the transformative reforms in Nigeria, and the export potential of South Africa. For buyers, the message is unequivocal: a complicated, data-driven understanding of underlying fundamentals is important to unlocking the continent’s enduring potential.

Supply: RMB (Rand Service provider Financial institution). “The place to Put money into Africa 2025/26 Report”.