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Top 10 African Countries for Investment: Where to Put Your Money

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, before investing in any country, it is essential to carry out adequate research due to the fact that there are potential downsides.

The Absa Africa Financial Markets Index (AFMI) is a helpful instrument for measuring the desirability of individual nations in Africa for the purpose of investment. It assesses the level of advancement made in the development of capital markets and offers individual nations advice on how to entice international investment in their own economies.

The majority of AFMI countries have seen an increase in their ratings for the second year in a row. The most significant gains were made by Zimbabwe and Rwanda, which both increased their scores by over 2 points. While Rwanda is working with multilateral organizations to develop market norms for green investments, Zimbabwe has already incorporated climate concerns into financial stability regulation.

Nevertheless, the index as a whole has not seen development in the same manner. A number of African nations have seen their currencies lose value and experience a flight of capital as a direct result of rising interest rates in more developed economies.

Egypt has been particularly heavily struck, as the country’s overall score has dropped by 3 points as a result. It is no longer among the top 10 positions. Scores on average have also gone down in South Africa, Nigeria, and Uganda; however, these three countries, along with Mauritius and Namibia, continue to be ranked in the top five.

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. According to this, there is a significant amount of opportunity for improvement all throughout the continent.

Rank (2023) Country Score 2023 Score 2022 Comments
1 South Africa 88 89 Lower pension assets in dollar terms weigh on score
2 Mauritius 77 77 Rise in sovereign and corporate credit ratings
3 Nigeria 67 68 Foreign exchange shortages and rising inflation reduce score
4 Uganda 63 64 Fall in FX reserves and liquidity
5 Namibia 63 63 Large pension assets but decline in fixed-income market
6 Botswana 59 58 New incentives for ESG asset issuance lift score
7 Kenya 59 60 Lower FX reserves and market liquidity
8 Morocco 58 57 New climate stress testing and higher FX liquidity
9 Ghana 58 59 Deterioration in FX reserves and price stability
10 Tanzania 55 55 Improved product diversity with sukuk bond issuance


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