South Africa and Egypt are the only African nations to feature in the latest ranking of emerging markets for foreign direct investment (FDI) confidence in 2025.
- South Africa and Egypt are the only African nations in the 2025 FDI confidence ranking.
- South Africa improved from 11th to 7th globally, with a score of 1.48 and $661 million in Q1 2025 FDI inflows.
- Egypt holds the 13th spot globally, maintaining its status as a leading African investment destination.
South Africa and Egypt are the only African nations to feature in the latest ranking of emerging markets for foreign direct investment (FDI) confidence in 2025, based on a survey conducted by Kearney.
South Africa saw the most significant improvement in the rankings, climbing from 11th to 7th place globally with an FDI confidence score of 1.48. It also recorded $661 million in FDI inflows during the first quarter of 2025, a 56% increase compared to the final quarter of 2024.
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Egypt ranks 13th, with an FDI confidence score of 1.33, maintaining its position as one of Africa’s leading investment destinations.
Emerging markets often attract foreign investors with prospects for higher economic growth and diversification.
Market dominance
Globally, 11 of the top 25 emerging markets are located in Asia and the Middle East. China (including Hong Kong) continues to lead as the top destination for FDI confidence in 2025, despite a recent slowdown in capital inflows that hit multi-year lows in 2023.
The United Arab Emirates and Saudi Arabia remain in second and third place, respectively. Brazil and India, two of the largest emerging economies by GDP, round out the top five, with Brazil overtaking India in this year’s confidence rankings.
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The rankings are drawn from responses by 536 senior executives at global companies with annual revenues above $500 million.
The survey findings also show the varying drivers behind investor confidence across markets. In China, technological innovation is the key appeal, while in the UAE and Saudi Arabia, strong economic performance is the primary draw.
For India and Mexico, the availability of skilled labour ranks highest among factors influencing FDI decisions.
Across all markets, investors cited efficient legal and regulatory environments, alongside robust domestic economic conditions, as top priorities when considering investment destinations.
