South Africa and Egypt have made significant strides in the latest ranking of emerging markets for foreign direct investment (FDI) confidence in 2025, according to a survey conducted by Kearney. South Africa, in particular, saw a remarkable improvement, climbing from 11th to 7th place globally with an FDI confidence score of 1.48. The country also recorded $661 million in FDI inflows in the first quarter of 2025, marking a 56% increase compared to the previous quarter.
On the other hand, Egypt maintained its position as one of Africa’s top investment destinations, ranking 13th with an FDI confidence score of 1.33. Both countries are attracting foreign investors with the promise of higher economic growth and diversification opportunities.
Globally, Asia and the Middle East dominate the top 25 emerging markets for FDI confidence. China remains at the forefront, followed by the United Arab Emirates and Saudi Arabia. Brazil and India round out the top five, with Brazil surpassing India in this year’s rankings. The rankings are based on responses from 536 senior executives at global companies with revenues exceeding $500 million.
The survey findings reveal that different factors drive investor confidence in various markets. In China, technological innovation is a key appeal, while the UAE and Saudi Arabia attract investors with strong economic performance. India and Mexico, on the other hand, stand out for their skilled labor force, which influences FDI decisions.
Efficient legal and regulatory environments, as well as robust domestic economic conditions, are cited as top priorities for investors when assessing potential investment destinations across all markets.
Overall, South Africa and Egypt’s improved rankings reflect the growing confidence in these African nations as attractive destinations for foreign direct investment in 2025.
