Morocco has climbed to the 4th position in Africa for investment attractiveness, according to a report by Rand Merchant Bank, a subsidiary of FirstRand Group. The report, titled "Where to Invest in Africa 2026/2027," ranks Morocco ahead of South Africa, which has dropped to 5th place. The top three positions are held by Seychelles, Mauritius, and Egypt. Morocco's advancement is attributed to its industrial transformation, diversification of exports, and development of infrastructure.
The report highlights Morocco's growth in the automotive and aerospace sectors, as well as its tourism industry, as key factors in its improved ranking. The country's economic growth rate of 4.9% in 2025, compared to South Africa's 1.1%, has also contributed to its rise. The report emphasizes that investment attractiveness is not solely determined by market size, but also by a country's ability to provide a productive environment, logistics, and policies that enable businesses to develop and access markets.
The ranking is based on 20 indicators across four main axes: economic performance and growth potential, market access and innovation, investment climate, and social and human development. This methodology allows for a comprehensive comparison of investment environments, rather than relying solely on economic size or foreign investment flows. As a result, Morocco's 4th position reflects its relative attractiveness as an investment destination, rather than its actual ranking in terms of foreign investment received.
While South Africa's ranking has declined, it still maintains its strengths, including a deep financial market, improved energy security, and ongoing reforms. However, the country's slow growth rate has impacted its ranking compared to Morocco, which has demonstrated faster dynamics in various industrial and service activities. This highlights the importance of implementing economic policies and adapting to international trends, particularly in sectors where countries compete to attract export-oriented investments.
The improvement in Morocco's ranking raises questions about how this increased attractiveness will translate into productive projects, sustainable job opportunities, and added value within the national economy. The challenge lies in expanding the benefits of supply chains to local businesses, linking training to new activity needs, and distributing investment opportunities across a broader territorial area.
Morocco's advancement in the ranking provides an additional boost to its position as a destination for investment, production, and export, leveraging its accumulated infrastructure and industrial expertise. This also opens up broader prospects for attracting new projects, developing skills, and expanding job opportunities, ultimately enhancing the national economy and citizens' benefits from this dynamic.
The report's findings are seen as a positive development for Morocco, which has been working to enhance its investment climate and promote economic growth. The country's efforts to diversify its economy, invest in infrastructure, and develop its industrial sectors have contributed to its improved ranking. As Morocco continues to implement its economic strategies, it is expected to remain an attractive destination for investors in Africa.
Key points
- Morocco ranks 4th in Africa for investment attractiveness, surpassing South Africa.
- The report highlights Morocco's growth in the automotive and aerospace sectors, as well as its tourism industry, as key factors in its improved ranking.
- The ranking is based on 20 indicators across four main axes: economic performance and growth potential, market access and innovation, investment climate, and social and human development.
