WORLD 🔗 Part of: Global Economic Trends (47) · 28 Oct 2026 · 00:00 GMT ·2 min read

Morocco Overtakes South Africa in Rand Merchant Bank Investment Ranking

Morocco is now the fourth-most attractive investment destination in Africa.

NEUTRALITY 80 · BALANCED· 4 sources

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Morocco is now the fourth-most attractive investment destination in Africa. Rand Merchant Bank announced this ranking in its "Where to Invest in Africa" report on October 27, 2026. The bank evaluated 31 African countries for the study. It cites Morocco's industrialization, export diversification, and infrastructure growth as the primary drivers for this shift. Seychelles, Mauritius, and Egypt hold the top three positions. Morocco’s manufacturing sector, specifically automotive exports, helped the country overtake South Africa. South Africa now ranks fifth.

Context

Seychelles, Mauritius, and Egypt have led the Rand Merchant Bank (RMB) investment rankings for three consecutive years. Ten years prior to the latest report, Morocco and South Africa were closely matched. Both nations welcomed approximately 10 million tourists annually at that time. The two nations diverged in recent years. Morocco doubled its vehicle production since 2015. This transformation established the country as a manufacturing hub. Morocco moved into the fourth position in the latest RMB report. This shift displaced South Africa from that rank.

Supportive perspectives

Morocco's economy grew by 4.9% in 2025. South Africa recorded 1.1% growth during the same period. This macroeconomic performance influenced Morocco's position in the Rand Merchant Bank report.
Morocco's automotive sector leads the nation's industrial output. Automotive exports totaled 154.49 billion Moroccan dirhams (MAD) in 2025. This growth continued in 2026. Exports reached 116.15 billion MAD during the first eight months of 2026. This figure marks a 14.5% increase over the same period in 2025.
Tourism drives the Moroccan economy. Morocco recorded 19.8 million tourist arrivals in 2025. The sector generated $13 billion in receipts during 2025. The government targets 26 million annual arrivals by 2030.
The Rand Merchant Bank evaluated 31 African countries in its report. The study used 20 indicators across four categories. The bank attributes Morocco's rise to years of sustained industrialization, export diversification, and infrastructure investment.

Critical perspectives

South Africa's automotive industry remains a significant economic pillar, accounting for approximately 5% of the country's economy. The sector relies heavily on the European Union, which receives about two-thirds of South Africa's vehicle production.
South Africa aims to welcome 15 million international visitors by 2030. The country recorded 10.5 million international tourist arrivals in 2025. This total marks a 17.7% increase from the 8.9 million arrivals recorded in 2024.
South Africa's automotive master plan aims to increase the percentage of locally manufactured component content to 60%.
Other nations saw significant shifts in the latest rankings, with Nigeria rising seven positions to 11th place. Conversely, Senegal fell five places to 19th, highlighting the volatility of the investment landscape across the continent.