Morocco has moved up the rankings to become Africa's fourth-most attractive investment destination, according to Rand Merchant Bank's (RMB) latest "Where to Invest in Africa" report. The report cites years of industrialization, export diversification, and infrastructure investment as the reasons behind Morocco's rise. The 2026/27 ranking places Morocco behind Seychelles, Mauritius, and Egypt, which retained the top three positions for the third consecutive year.
South Africa, which ranked fourth in the previous edition, fell to fifth. Côte d'Ivoire rose to seventh place from 16th two years ago, while Nigeria climbed seven places to 11th. Morocco's industrial transformation has helped drive its rise in the rankings, particularly through automotive manufacturing and exports. The country produced 501,965 vehicles in 2025, accounting for 40.8% of Africa's total production.
Vehicle and component exports reached a record MAD 157.6 billion ($16.02 billion) in 2024, up 6.3% from the previous year, making the sector Morocco's largest export earner. However, vehicle production declined 11.5% in 2025 from its 2024 peak. The report also points to Morocco's stronger economic performance, with the economy growing 4.9% in 2025, compared with 1.1% in South Africa.
Inflation remained below 3% in Morocco from 2024 through mid-2026, while South Africa recorded average inflation of 5% over the five years to June 2026. Morocco also secured an investment-grade sovereign credit rating from S&P Global Ratings in September 2025, reflecting the agency's assessment of its economic outlook and reform progress.
RMB noted that South Africa remains an attractive investment destination, with deep financial markets, improving energy security, and ongoing reforms. Its economy also remains more than twice the size of Morocco's, with nominal GDP exceeding $400 billion in 2025. However, long-standing electricity and logistics problems have weighed on South Africa's industrial and export competitiveness.
Morocco continues to report strong investment figures, with foreign direct investment reaching a record MAD 56.1 billion ($5.70 billion) in 2025, up 22% from the previous peak recorded in 2018. In April, the National Investment Commission approved 44 investment projects worth a combined MAD 86.36 billion ($8.77 billion), which could create nearly 20,500 jobs.
The government also reported that Morocco's investment charter had led to 391 signed investment agreements worth a combined MAD 520 billion ($52.87 billion) over its first three years of operation. The charter became operational in March 2023 and aims to support private investment and job creation across the country.
Key points
- Morocco has overtaken South Africa to become Africa's fourth-most attractive investment destination.
- Morocco's economy grew 4.9% in 2025, compared with 1.1% in South Africa.
- Foreign direct investment reached a record MAD 56.1 billion ($5.70 billion) in 2025.
