Morocco has overtaken South Africa to become Africa’s fourth-most attractive investment destination, according to a new ranking published Tuesday by Rand Merchant Bank (RMB), reflecting stronger economic growth, industrial expansion and investment in infrastructure.
The kingdom climbed from fifth place in the previous edition of RMB’s Where to Invest in Africa report, moving ahead of South Africa, the continent’s largest economy.
Seychelles, Mauritius and Egypt retained the top three positions for the third consecutive year, according to Bloomberg, which reported the findings.
RMB attributed Morocco’s improved position to years of industrial development, export diversification and infrastructure investment, particularly in automotive manufacturing.
The report also cited Morocco’s macroeconomic stability and its ability to attract foreign direct investment.
Morocco’s economy expanded by 4.9% in 2025, compared with 1.1% growth in South Africa, according to figures cited by RMB.
South Africa maintained advantages in financial market depth, improving electricity supply and economic reforms, but weaker growth affected its ranking.
Automotive exports strengthen Morocco’s position
Morocco’s automotive industry has become a major contributor to the country’s export performance, supported by manufacturing operations involving Renault and Stellantis and a network of automotive suppliers.
Official data from the Office des Changes show that automotive exports reached MAD 154.49 billion in 2025, despite declining 2% from the previous year.
Exports recovered during the first eight months of 2026, rising 14.5% to MAD 116.15 billion.
The increase was driven by vehicle manufacturing, up 19%, and automotive wiring, up 13.9%, reflecting the sector’s role in Morocco’s manufacturing and export base.
The Tanger Med port complex has supported this expansion by connecting Moroccan factories with European and international markets.
How African economies were ranked
RMB evaluated 31 African countries using 20 indicators grouped into four categories: economic performance and potential, market accessibility and innovation, investment climate, and social and human development.
The ranking measures relative investment attractiveness rather than actual foreign investment received.
Elsewhere, Nigeria recorded the strongest improvement, climbing seven positions to 11th following economic reforms, while Senegal suffered the largest decline, falling five places to 19th amid fiscal and political difficulties.
Morocco’s improved ranking comes as the country expands its industrial capacity and prepares further infrastructure investments, although its export-oriented manufacturing sector remains exposed to international demand and economic conditions in Europe.
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