From Top 10 to 18th: Nigeria’s Sharp Decline in RMB Where to Invest Rankings

 Nigeria Sinks in Investor Confidence as Naira Weakens and Prices Soar Seychelles and Mauritius have once again secured the top two spots in...

 Nigeria Sinks in Investor Confidence as Naira Weakens and Prices Soar

Seychelles and Mauritius have once again secured the top two spots in the RMB Where to Invest in Africa 2025/26 report, cementing their status as the continent’s most attractive investment destinations despite their modest size. The island nations outranked larger economies, with Egypt, South Africa, and Morocco rounding out the top five.

RMB described the duo as “small but appealing markets” that continue to punch above their weight in investor appeal, thanks to stable governance, business-friendly policies, and strategic positioning in global trade routes.

The report paints a picture of a continent in flux, where geopolitical shifts, policy reforms, and redirected capital flows are redefining economic engagement. “Changes in the political and subsequent policy environment, alongside declining foreign aid and the redirection of global capital flows, are reshaping how African economies engage with the world,” RMB stated.

While rankings tend to remain stable—owing to slow-moving fundamentals like industrial structures and population dynamics—several countries experienced significant movement this year.

Standout Climbers

Côte d’Ivoire recorded the most dramatic ascent, surging eight places from 16th to 8th. The West African nation benefited from expanded electricity access and a booming domestic processing sector for cocoa and cashews—key export commodities now adding greater value locally.

Zambia climbed five spots to 20th, defying severe drought and power shortages. A rebound in copper production, fresh mining investments, and successful debt restructuring have eased fiscal pressures and are expected to “lower risk premiums and revive investment appetites,” according to the report.Tanzania and Angola also posted strong gains, moving up three and one place respectively, reflecting improved macroeconomic management and resource-sector momentum.

Notable Decliners

Nigeria, Africa’s most populous nation, suffered the steepest fall—tumbling nine places from 9th to 18th. Persistent currency depreciation against the U.S. dollar and soaring inflation eroded investor confidence. However, the report struck an optimistic note, citing ongoing reforms and a recent GDP rebasing that revealed a larger-than-previously-estimated economy as foundations for future recovery.

Senegal dropped from 14th to 17th amid a year of political turbulence that tempered growth forecasts and dampened sentiment among international investors.

Regional FDI Trends

Separate data from the United Nations Conference on Trade and Development (UNCTAD) underscores the uneven distribution of foreign direct investment (FDI) across Africa. Total FDI reached US$97 billion in 2024, up 75% from US$55 billion in 2023.North Africa attracted US$51 billion in 2024 (down 27% from US$70 billion in 2023), reflecting project delays and regional instability.

West Africa saw inflows shrink slightly to US$15 billion (–7%).

Central Africa recorded modest growth to US$8 billion (+13%).

East Africa rose to US$13 billion (+12%).

Southern Africa posted a healthy US$11 billion (+44%), buoyed by mining and renewable-energy projects.

Looking Ahead

RMB emphasised that while short-term volatility persists, structural reforms across the continent are laying groundwork for sustained progress. From Côte d’Ivoire’s agro-processing boom to Zambia’s mining revival, pockets of resilience signal opportunity for discerning investors.As one analyst noted, “Africa’s investment story is no longer just about scale—it’s about agility, reform momentum, and the ability to turn constraints into competitive advantage.”