Top 10 African Countries with Highest Market Exit Rates in 2025

In Summary

• with the number of exits listed equaling the total for the entire years of 2023 and 2024.
• The surge in Market exit activity is additionally highlighted by the fact that six exits were announced in June 2025 alone, a level not seen since 2022. 
• More than 330 investors participated in over $100k deals in H1 2025, an increase from H1 2024, but below H1 2023 and H1 2022. 

Deep Dive!!

As African economies continue to pursue growth and development in an increasingly competitive global landscape, investor retention has become just as critical as investor attraction.

However, the year 2025 has seen several countries across the African continent grapple with a worrying trend, which is rising market exit rates. Companies from every sector have experienced high market exits, including multinational corporations, banks, tech startups, logistics firms, etc.

This is attributable to policy inconsistencies, macroeconomic instability, security threats, and systemic infrastructure gaps. These exits not only signal a loss of confidence but also reveal deeper structural challenges that must be addressed to foster a resilient and investable business climate.

In this article, we write about the top 10 African countries experiencing the highest exit rates in 2025 and explore the economic, regulatory, and operational factors driving this trend.

10. Angola

Despite its oil-driven economy, Angola has faced significant challenges in attracting and retaining foreign investment in 2025. Currency instability, particularly the depreciation of the kwanza, and difficulties in repatriating profits have been major deterrents. International FMCG brands, telecommunications firms, and service providers have scaled down operations or exited entirely, citing rising costs and limited access to forex.

Moreover, Angola’s slow pace of economic diversification and heavy bureaucratic processes continue to frustrate investors. The country’s promising potential in agriculture and manufacturing remains largely untapped, and without major reforms in business registration, tax policy, and capital repatriation, more exits could follow.

9. Algeria

Algeria’s market exits are linked to a rigid regulatory environment and the government’s hesitancy toward liberal economic policies. In 2025, automotive brands, foreign contractors, and multinational retailers have shut down or suspended activities due to state dominance in many sectors, limited access to foreign currency, and import restrictions.

Additionally, the lack of transparent business laws and slow reforms in the privatization of public enterprises have made Algeria less competitive. European firms especially find it difficult to navigate Algeria’s opaque licensing and procurement processes, contributing to the rising exit rate.

8. Ethiopia

Ethiopia was once considered a promising frontier market due to its large population and rapid growth. However, the resurgence of political unrest, especially in Tigray and Oromia, has significantly impacted investor confidence in 2025. Airlines, logistics companies, and manufacturing firms have either paused investment or exited due to security concerns and infrastructure disruptions.

Furthermore, capital controls and forex shortages have made it difficult for foreign firms to import raw materials or repatriate earnings. The telecom liberalization process that once attracted global attention is now slowed by political risk, causing international players to reconsider their long-term plans in the country.

7. South Sudan

South Sudan’s economy remains fragile, with political instability and violence continuing to scare away investors. In 2025, several international NGOs, infrastructure companies, and regional logistics firms exited due to armed conflicts and lack of access to safe operational environments.

Moreover, the banking system is nearly non-functional in many parts of the country, making routine transactions difficult. Combined with a lack of enforceable contracts and minimal legal protection for investors, South Sudan remains one of the continent’s most difficult markets to operate in.

6. Tunisia

In 2025, Tunisia is grappling with the consequences of political transition and economic stagnation. The withdrawal of international brands, particularly in the fashion, tech, and banking sectors has been driven by high inflation, unpredictable tax policies, and weak consumer demand.

Despite efforts by the government to boost tourism and tech entrepreneurship, poor digital infrastructure and slow administrative processes continue to hold the economy back. The departure of European SMEs and large retail chains reflects growing frustration over the lack of structural reform and an unfriendly investment climate.

5. Sudan

Sudan has seen one of the most dramatic investors exit due to a full-blown return to civil war in 2024–2025. Commercial activity in Khartoum and other cities has ground to a halt, with telecommunications networks disrupted and banking operations suspended. Oil companies, airlines, and manufacturing businesses have withdrawn in large numbers due to safety risks and government dysfunction.

The country’s economic crisis, exacerbated by sanctions, inflation exceeding 400%, and institutional collapse has rendered it nearly impossible for businesses to survive. Humanitarian operations have also been curtailed, reflecting the extent of market implosion.

4. Zimbabwe

In Zimbabwe, inflation once again spiralled out of control in 2025, surpassing 600% year-on-year. This, coupled with political interference and currency redenomination, has caused a wave of business exits. Foreign banks and regional supermarket chains have shut down outlets or divested, citing losses from currency conversion and falling consumer purchasing power.

Despite a large informal economy and entrepreneurial talent, the government’s reluctance to allow independent financial systems and its heavy-handed regulation have made the environment unsustainable for formal businesses. The lack of infrastructure and energy reliability compounds the problem.

3. Nigeria

Despite being Africa’s largest economy by GDP, Nigeria has experienced significant market exits in 2025 due to chronic forex shortages, policy flip-flops, and rising operational costs. The exit of multinational food chains, airlines like Emirates, and even tech companies like Bolt from key cities underscores growing investor disillusionment.

Businesses report long delays in accessing foreign currency, difficulty in clearing goods from ports, and inconsistent fiscal policies. Many marketers and FMCG operators cite consumer fatigue and a shrinking middle class as reasons for downsizing or closing entirely. With high youth unemployment and security threats in parts of the country, the risk profile remains high.

2. DR Congo

In 2025, the Democratic Republic of Congo (DRC), despite being one of the most resource-rich nations in Africa, continues to witness a significant exodus of multinational and regional companies due to a complex combination of structural and security challenges. Several mining giants, telecom operators, and regional logistics providers have either scaled down operations or exited entirely, citing persistent insecurity in the eastern provinces, where groups like the M23 rebels and other militias remain active as a key deterrent to investment and safe operations.

Power outages, inconsistent tax policies, and widespread corruption continue to plague business environments, even in the capital, Kinshasa. According to the Extractive Industries Transparency Initiative (EITI), unpredictable regulatory enforcement and opaque revenue channels discourage foreign direct investment. Additionally, the IMF and World Bank have raised concerns about the DRC’s weak institutional governance, lack of judicial independence, and arbitrary customs practices that increase business risk.

Although global interest in the DRC’s critical minerals, particularly cobalt and lithiumremains high, companies across the value chain are increasingly choosing to relocate to neighboring Zambia and Rwanda. These countries offer clearer tax regimes, better logistics infrastructure, and more transparent regulatory systems. For example, the relocation of supply chain partners by firms like Glencore to Zambia's Copperbelt underscores the growing appeal of stability and efficiency over proximity to resources.

1. Ghana

Ghana ranks highest in 2025 for market exits, largely driven by the rapid withdrawal of several major players in the banking and telecommunications sectors. Companies like Standard Chartered Bank and First Bank of Nigeria (FBN) have either divested or significantly scaled back their operations, citing harsh macroeconomic headwinds. On the telecom front, MTN Ghana and Airtel Tigo have publicly raised concerns over mounting operational costs and policy unpredictability, particularly regarding new taxes on digital transactions.

The core driver behind this wave of exits has been the fallout from Ghana’s sovereign debt restructuring between 2023 and 2024, which triggered a sharp loss of investor confidence. The Ghana cedi depreciated by more than 25% against the U.S. dollar, while inflation surged above 40%, according to Ghana Statistical Service data. Coupled with government-imposed levies like the Electronic Transfer Levy (E-Levy) and broader fiscal tightening under IMF conditions, the business environment has become increasingly unsustainable for many firms operating in consumer-facing and financial services industries.

Banks such as Standard Chartered and some regional telcos have sold off assets or exited the retail market entirely. The retail and FMCG sectors have been hit hard, with shop closures and layoffs due to high import costs and shrinking consumer demand. Ghana’s current situation highlights how macroeconomic mismanagement, even in historically stable economies can drive investor flight.