News

Government Efficiency and Innovation Gaps Weigh on African Investment Appeal, Study Finds

Government Efficiency and Innovation Gaps Weigh on African Investment Appeal, Study Finds
Tuesday, 16 September 2025 16:32

The 38 African countries covered by "The Global Attractiveness Index 2025" were mostly ranked at the bottom of the list, primarily due to weak performance in government efficiency, innovation, and human capital development.

Mauritius, Egypt, and Algeria are Africa's most attractive countries for multinational corporations and foreign investors in 2025, according to a ranking published on Sunday, September 7, by the Italian consulting firm The European House–Ambrosetti (TEHA).

The Global Attractiveness Index 2025 evaluated the appeal of 146 countries, representing 98% of global GDP and 94% of the world's population. The ranking is based on 50 key performance indicators from international organizations, including the United Nations Development Programme, the International Monetary Fund, the World Bank, and the United Nations Conference on Trade and Development. These indicators measure factors like foreign direct investment flows, human development, GDP per capita, public debt-to-GDP ratio, unemployment rates, government efficiency, and the rule of law. The index also considers gender equality, the number of STEM university students, and the level of ICT development.

The indicators are organized into four sub-indices: positioning, dynamism, sustainability, and future outlook. Each country receives a score from 0 to 100, with countries falling into one of four categories: highly attractive (80-100 points), fairly attractive (60-80 points), moderately attractive (30-60 points), and least attractive (0-30 points).

Mauritius leads the African ranking, placing 76th globally with a score of 30.4 points. The island nation performed well in the "dynamism" sub-index, which measures economic openness, policy efficiency, innovation capacity, and human capital development. Egypt and Algeria tied for second place in Africa, both at 78th globally with a score of 30 points. These three are the only African economies to be classified as "moderately attractive." They are followed by Morocco (85th), Côte d’Ivoire (89th), Botswana (93rd), South Africa (96th), Senegal (97th), Rwanda (99th), and the Seychelles (100th), which rounds out the African top ten.

Globally, most African countries ranked low on the list, mainly due to weak performance in government efficiency, innovation, and human capital development. The United States remained the most attractive country for multinational corporations and foreign investors with a perfect score of 100, followed by China (87.7 points), Germany (81.4 points), Singapore (80.9 points), and Japan (78.8 points).

Overall, four countries were in the "highly attractive" category, 12 were "fairly attractive," while 63 were "moderately attractive" and 67 were considered "least attractive."

Walid Kéfi

Ranking of Africa's Most Attractive Countries

This table shows the top 38 most attractive African countries for multinational corporations and foreign investors in 2025, according to the Global Attractiveness Index. The rankings are presented first by their position in Africa and then by their global rank.

African Rank Global Rank Country
1 76 Mauritius
2 78 Egypt
3 78 Algeria
4 85 Morocco
5 89 Côte d'Ivoire
6 93 Botswana
7 96 South Africa
8 97 Senegal
9 99 Rwanda
10 100 Seychelles
11 101 Tunisia
12 101 Tanzania
13 104 Ghana
14 108 Namibia
15 109 Nigeria
16 110 Benin
17 111 Zambia
18 113 Togo
19 115 Kenya
20 119 Niger
21 121 Mali
22 121 Chad
23 124 Cape Verde
24 127 Gambia
25 129 Lesotho
26 131 Zimbabwe
27 132 Cameroon
28 133 Uganda
29 134 Burkina Faso
30 136 DRC
31 137 Guinea
32 138 Mauritania
33 139 Mozambique
34 140 Sierra Leone
35 141 Malawi
36 142 Madagascar
37 143 Liberia
38 144 Burundi
On the same topic
The 38 African countries covered by "The Global Attractiveness Index 2025" were mostly ranked at the bottom of the list, primarily due to weak performance...
 Africa has 6.53M hectares of unrecorded non-plantation oil palms DRC and Nigeria hold largest areas; mostly wild or semi-wild...
• Orange has partnered with UK-based Synamedia to boost its CDN services across Africa and the Middle East.• The deal integrates Orange’s Content Delivery...
• Nigeria’s exports to Togo surged six-fold to ₦812 billion in Q2 2025, overtaking South Africa.• Lower costs, shorter dwell times and CFA franc...
Most Read
01

From Dakar to Nairobi, Kampala to Abidjan, mobile money has become a lifeline for millions of Africa...

Africa's Boundless Future: How a simple mobile phone became a pocket bank for millions
02

• WAEMU posts 0.9% deflation in July, second month in a row• Food, hospitality prices drop; alcohol,...

WAEMU Region Records Second Straight Month of Deflation, at -0.9% in July 
03

Airtel Gabon, Moov sign deal to share telecom infrastructure Agreement aims to cut costs, boo...

Gabon’s Airtel, Moov to Share Towers Under Govt-Brokered Deal
04

Vision Invest invests $700m in Arise IIP, Africa’s largest private infrastructure deal in 202...

Saudi Arabia’s 2025 Shopping List Now Includes Industrial Parks in Africa — With a $700 Million Entry Ticket
05

As a relatively small issuer in the West African Economic and Monetary Union (WAEMU) market, Benin i...

How Benin, a Small West African Nation, Became a Darling of Regional Debt Markets
Enter your email to receive our newsletter

Ecofin Agency provides daily coverage of nine key African economic sectors: public management, finance, telecoms, agribusiness, mining, energy, transport, communication, and education.
It also designs and manages specialized media, both online and print, for African institutions and publishers.

SALES & ADVERTISING

regie@agenceecofin.com 
Tél: +41 22 301 96 11 
Mob: +41 78 699 13 72


EDITORIAL
redaction@agenceecofin.com

More information
Team
Publisher

ECOFIN AGENCY

Mediamania Sarl
Rue du Léman, 6
1201 Geneva
Switzerland

 

Ecofin Agency is a sector-focused economic news agency, founded in December 2010. Its web platform was launched in June 2011. ©Mediamania.

 
 

Please publish modules in offcanvas position.