PRETORIA – South Africa and Egypt emerged as the continent’s sole representatives in Kearney’s top 25 emerging markets for foreign direct investment, ranking 7th and 13th respectively in the consultancy’s 2025 confidence index.
The rankings, based on senior executive surveys about future investment prospects, place South Africa in the top 10 for the first time while Egypt maintains its position as a consistent draw for international capital. The index measures investor sentiment across emerging economies competing for global investment flows.
South Africa’s improved standing reflects institutional reforms and regulatory improvements that have boosted investor confidence. The country attracts particular interest in energy, manufacturing and technology sectors, with executives citing strong legal frameworks as a competitive advantage.
Egypt’s ranking reinforces its position as North Africa’s economic hub. The country benefits from strategic geographic positioning, major infrastructure projects and ongoing business climate reforms designed to attract foreign investment.
The results highlight a stark continental divide. While South Africa and Egypt secured spots among the world’s most attractive emerging markets, no other African countries made the top 25 list. This absence points to ongoing challenges across much of the continent, including policy uncertainty and infrastructure deficits that may limit investment appeal.
Kearney’s index evaluates markets based on executive perceptions of investment opportunities over the next three years. Countries must demonstrate both immediate potential and long-term institutional stability to attract sustained foreign capital flows.
The findings come as global investment patterns shift, with companies reassessing emerging market strategies amid changing geopolitical and economic conditions. For Africa, the concentration of investor interest in just two countries suggests missed opportunities across a continent with significant economic potential.
South Africa’s rise in the rankings follows efforts to address structural economic challenges, including power supply issues and regulatory bottlenecks that have previously deterred investment. The government has prioritized improving the business environment and attracting foreign capital across key sectors.
Egypt’s sustained appeal stems from its large domestic market, strategic location linking Africa, Asia and Europe, and ongoing mega-projects including its new administrative capital. The country has implemented economic reforms aimed at creating a more investor-friendly environment.
The complete Kearney report provides detailed analysis of global FDI trends and emerging market competitiveness across multiple sectors and regions.
