MOROCCO · INVESTMENT
Key Facts
- The country Morocco is a North African kingdom with Atlantic and Mediterranean ports, a large car industry and close trade ties to Europe.
- What happened On Tuesday 27 October 2026, Rand Merchant Bank ranked Morocco fourth and South Africa fifth among African investment destinations.
- The ranking Seychelles, Mauritius and Egypt hold the top three places for a third year, ahead of Morocco and South Africa.
- The method The report scores 31 African countries on 20 indicators in four groups: economic performance, market access and innovation, investment climate, and social development.
- The growth gap Morocco’s economy grew 4.9% in 2025, against 1.1% for South Africa, according to figures cited with the ranking.
- Car exports Moroccan automotive exports rose 14.5% to 116.15 billion dirhams (about US$11.8 billion) in the first eight months of 2026.
- Still open How Morocco’s lead holds up if European demand for its cars weakens, and how fast South Africa can fix its slow growth.
Morocco overtakes South Africa as Africa’s fourth most attractive investment destination, according to a ranking published on Tuesday 27 October 2026. Rand Merchant Bank, a Johannesburg investment bank owned by the FirstRand financial group, placed Morocco fourth and pushed South Africa down to fifth.
For American investors and exporters, the change points to North Africa’s car-making kingdom as a growing alternative to the continent’s largest economy. Moroccan outlets carried the news on Tuesday, with Hespress citing the state news agency MAP.
What the 2026/27 Ranking Shows
The Where to Invest in Africa report compares 31 African markets on 20 indicators. Seychelles, Mauritius and Egypt keep the top three places for a third straight year, with Morocco now fourth after sitting fifth a year ago.
Morocco overtakes South Africa, which drops from fourth to fifth, while Nigeria gains seven places to 11th, the biggest climb. Senegal falls five places to 19th, the largest drop, as political turbulence and credit downgrades weigh on its score.
Why Morocco Moved Up
Rand Merchant Bank credited years of industrialization, export diversification and infrastructure spending for the rise. Morocco overtakes South Africa on growth, at 4.9% in 2025 against 1.1%.
Cars sit at the centre of the story, with Renault and Stellantis plants and a network of parts suppliers. Moroccan automotive exports rose 14.5% to 116.15 billion dirhams (about US$11.8 billion) in eight months, with vehicle output up 19%.
Where South Africa Slipped
Rand Merchant Bank’s chief economist, Isaah Mhlanga, said Morocco has grown at close to 5% for a couple of years. South Africa has averaged about 1% over the past decade, and the bank expects 1% this year and next.
The bank still points to South Africa’s deep financial markets, better electricity supply and reform push as strengths. Mhlanga also said Nissan has moved production from South Africa to Morocco, one sign of the competition for car plants.
Tourism and Cars Show the Gap
Business Day reported that Morocco welcomed 19.8 million visitors in 2025, with receipts of about US$13 billion. South Africa logged a record 10.5 million arrivals, although a decade ago both countries drew about 10 million visitors a year.
South Africa’s car sector makes up about 5% of its economy, and the government wants local content lifted from roughly 40% to 60%. Trade minister Parks Tau said the state will phase out semi-knocked-down assembly, in which kits are bolted together locally.
Morocco’s Investment Pipeline
Foreign direct investment into Morocco reached a record 56.1 billion dirhams (about US$5.7 billion) in 2025, Morocco World News reported. In April the National Investment Commission, which approves large projects, cleared 44 projects worth 86.36 billion dirhams (about US$8.8 billion).
A July round approved 29 agreements worth nearly 42 billion dirhams (about US$4.3 billion), expected to create about 9,800 jobs. The investment charter, in force since March 2023, has produced 391 signed agreements worth 520 billion dirhams (about US$52.8 billion).
What It Means for US Readers
American companies weighing a base for Africa and Europe now see Morocco ahead of South Africa in this ranking. Because Morocco overtakes South Africa, exporters of cars and parts will take note of its free trade agreement with the United States.
Travelers and tour operators are also watching, since the 2030 football World Cup will be shared by Morocco, Spain and Portugal. Our earlier report on South Africa’s tourism gap looked at the competition South Africa faces from Morocco and Tunisia.
What Is Not Known
The ranking measures how attractive a country looks, not how much money arrives, and the scores sit in the full report. It is also open how much of Morocco’s gain comes from the car sector, which depends on demand from Europe.
Morocco’s vehicle output fell 11.5% in 2025 from its 2024 peak, so the 2026 rebound has still to prove itself over a full year. Whether Morocco overtakes South Africa again next year depends partly on South Africa lifting growth above 1%.
More: Morocco news in English, every day from The Rio Times.
Frequently Asked Questions
What did the new ranking say about Morocco?
Morocco rose from fifth to fourth place among 31 African markets in the 2026/27 report and overtook South Africa, which fell to fifth.
Who ranks first, second and third?
Seychelles, Mauritius and Egypt hold the top three places for a third year in a row. Morocco follows in fourth.
How does the report rank countries?
It scores 31 countries on 20 indicators in four groups: economic performance, market access, investment climate and social development. The scores themselves sit in the full report.
Why did South Africa fall behind Morocco?
Morocco grew 4.9% in 2025 against 1.1% for South Africa, and Rand Merchant Bank credits Moroccan industrialization and exports. Strong financial markets were not enough for South Africa to hold fourth place.
Does the ranking mean more foreign money is flowing into Morocco?
Not directly, because the report measures relative attractiveness rather than investment received. Morocco did record foreign direct investment of 56.1 billion dirhams (about US$5.7 billion) in 2025.
Sources: Hespress English, Morocco overtakes South Africa to rank fourth (MAP), 27 October 2026; Morocco World News, Morocco overtakes South Africa to rank fourth, 27 October 2026; Yabiladi, Morocco overtakes South Africa as Africa’s fourth-most attractive destination, 27 October 2026; Business Day, Morocco overtakes SA among Africa’s top five investment destinations, 28 October 2026; RMB, Where to Invest in Africa 2026/27, October 2026.
This article was produced by The Rio Times’ automated newsroom system. How we use AI · Report an error · Editorial responsibility: Matthias Camenzind, Editor-in-Chief
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