Johannesburg, August 7, 2024 — RMB has unveiled the highly anticipated 2024 edition of its “Where to Invest in Africa” report, offering an in-depth analysis of the continent’s top investment opportunities. This year’s report, created in collaboration with the Gordon Institute of Business Science (GIBS), features updated methodologies and new data sources to provide a comprehensive view of Africa’s diverse investment landscape.
“Africa is not a country but a vast, diverse, and complex continent with varying cultures, economies, and investment potential,” said Isaah Mhlanga, Chief Economist at RMB. “Our report is designed to offer insights into the underlying drivers of each country’s performance, helping investors, policymakers, and business leaders navigate Africa’s dynamic economic environment.”
Expanded Data and Granularity
The 2024 report has enhanced its methodology by incorporating expanded data sets and adapting to changing geopolitical and macroeconomic conditions. It evaluates 31 countries that together account for 92% of Africa’s GDP and over one billion people, using publicly available data from global institutions such as the World Bank and the IMF.
The report assesses countries based on 20 metrics across four pillars: economic performance and potential; market accessibility and innovation; economic stability and investment climate; and social and human development. These metrics are weighted to create a standardized scorecard, allowing effective comparison across the continent’s varied markets.
Top Investment Destinations
The report ranks Seychelles and Mauritius as Africa’s top investment destinations, praised for their high levels of personal freedom, human development, and stable economic environments. Seychelles leads due to its favorable investment climate, while Mauritius is noted for its innovation and economic freedom despite a smaller economic size.
Egypt, Africa’s largest economy by GDP, ranks third, offering a substantial market with diverse opportunities in technology, manufacturing, and services. South Africa follows in fourth place, recognized for its robust financial sector and infrastructure development potential. Morocco rounds out the top five, noted for its economic stability and strategic proximity to European markets.
Investment Archetypes and Trends
The report categorizes African markets into five archetypes based on shared characteristics:
Highflyers: Large, well-established economies with stability and diverse opportunities, such as Nigeria and South Africa.
Cleared for Take-off: High-growth countries with potential due to innovation and resources, including Senegal and Côte d’Ivoire.
People Potential: Markets with a young, growing demographic that presents future workforce and consumer opportunities, like Kenya and Uganda.
Global Connectors: Advanced economies with a strong international presence, such as Morocco and Mauritius.
Low-Base Boomers: Smaller markets with high growth potential but greater risk, including Rwanda and Mozambique.
Additional Insights
The report highlights significant trends, including the role of innovation and economic complexity in driving growth. Countries like South Africa, Kenya, and Ghana are recognized for their technological advancements and economic diversification. The African Continental Free Trade Agreement (AfCFTA) is seen as a major factor for boosting intra-African trade and economic integration.
However, the report also notes challenges, such as infrastructure deficits and the need for improved governance to avoid the “resource curse.” It underscores the importance of investing in transportation, energy, and digital infrastructure, with South Africa, Kenya, and Nigeria identified as key markets for potential returns.
“The richness of Africa’s diversity makes it challenging to fully analyze its nuances,” Mhlanga concluded. “The 2024 RMB Where to Invest in Africa report aims to provide a balanced, actionable view of the drivers, challenges, and opportunities in each of the 31 markets analyzed.”
The report serves as a vital tool for stakeholders seeking to navigate Africa’s complex economic landscape and capitalize on the continent’s vast investment potential.
Click below to download the report in PDF.
