Johannesburg, South Africa – South Africa has relinquished its top spot as Africa’s most attractive investment destination, according to the latest Rand Mutual Bank (RMB) report. The country has been relegated to the fourth position, trailing Seychelles, Mauritius, and Egypt.
The RMB’s ‘Where To Invest In Africa 2024’ report assessed 31 African economies across four key pillars: economic performance, market accessibility, economic stability, and social development. While South Africa excelled in market accessibility and innovation, it faltered in economic growth, income inequality, and unemployment.
The report underscores the country’s economic and humanitarian crisis, citing a staggering unemployment rate, particularly among youth, as a major deterrent to investment. Additionally, infrastructure challenges, including electricity, rail, ports, and roads, have further dampened investor enthusiasm.
In contrast, Seychelles and Mauritius, despite their smaller market sizes, have emerged as top investment destinations due to their political stability, economic freedom, and strong human development indicators. However, their reliance on tourism and fisheries exposes them to external shocks.
Egypt, Africa’s largest economy, offers a vast market and diverse investment opportunities but is hampered by concerns over personal freedom.
The RMB report serves as a stark reminder of the complex investment landscape in Africa and the challenges facing South Africa as it seeks to regain its economic dominance.
Experts warn that unless the country addresses its socio-economic issues and infrastructure bottlenecks, it risks further losing its competitive edge to other African nations.
Top and bottom investment destinations
| Rank | Country |
|---|---|
| 1 | Seychelles |
| 2 | Mauritius |
| 3 | Egypt |
| 4 | South Africa |
| 5 | Morocco |
| 27 | Cameroon |
| 28 | Lesotho |
| 29 | Republic of Congo |
| 30 | Eswatini |
| 31 | Zimbabwe |
