Top 10 Countries with the Strongest Investor Protections in Africa in 2025

In Summary

• Africa saw a record 75% rise in FDI, driven by a mega infrastructure project in Egypt. Excluding that, flows still grew 12%, supported by investment reforms and improved facilitation across the continent.
• Africa needs $130-$170 billion annually to bridge its infrastructure gap and generate sustainable growth, and experts believe that investor protection will help the continent attract the much-needed FDI.
• Africa recorded 116 deals in Q1 2025, down just 3% YoY. However, this figure remains 21% below the five-year average, indicating an ongoing but incomplete market recovery.

Deep Dive!!

Slowly but surely, Africa has emerged as a hub of investment opportunities, attracting both domestic and international capital. As the continent continues to experience significant economic growth, investor protection has become a key factor in ensuring sustainable development. Strong investor protections are crucial for building confidence, safeguarding investments, and fostering an environment conducive to business and economic expansion.

Investment protection is fundamental to Africa’s growth and continuous investment drive; and as the Secretary-General of UN Trade and Development (UNCTAD), Rebeca Grynspan, puts it; “Investment is more than just capital flows and project pipelines. It’s a signal of where we’re placing our bets as a society.”

According to the Organisation for Economic Co-operation and Development (OECD), Africa needs $130-$170 billion annually to bridge its infrastructure gap and generate sustainable growth, and experts believe that investor protection will help the continent attract the much-needed FDI. We explored the importance and impact of FDI in Africa in our article titled ‘Top 10 African Countries Poised to Receive Highest Foreign Direct Investment (FDI) in 2025.’

To ensure a sustainable investor protection framework, the Accelerating and Scaling-up Quality Infrastructure Investment in Africa (ASQIIA) initiative was designed to support Africa’s policymakers generate bankable and impactful infrastructure project pipelines for economic transformation and continental integration.

Here, we explore the top 10 African countries with the strongest investor protections in 2025, examining their legal frameworks, regulatory reforms, and the impact of these protections on their respective economies. By understanding the efforts these countries have made to attract and retain investors, you gain insight into how effective governance, political stability, and robust legal systems can drive growth and innovation in Africa.

10. Botswana

Botswana's commitment to investor protection is demonstrated through its consistent implementation of economic policies that promote transparency and foster investor confidence. The country's legal framework is regarded as one of the most transparent in Africa, with strong institutions that uphold property rights and effectively enforce contracts. Botswana's legal system is based on the British common law tradition, which provides a familiar and predictable environment for foreign investors. In addition, the government has made substantial efforts to reduce corruption, with Botswana consistently ranking as one of the least corrupt countries in Africa. This clean record and strong governance model are key drivers of investment inflows.

The country's macroeconomic environment further strengthens its position as an attractive destination for investors. Botswana has maintained low inflation rates, a stable currency, and prudent fiscal policies. Its well-managed diamond industry, along with the government's focus on economic diversification, provides a solid foundation for future growth. As a result, Botswana has become an appealing market for investors seeking security, predictability, and long-term economic stability. The strong investor protections in place have helped to establish Botswana as one of the most stable and business-friendly economies in Southern Africa.

9. Senegal

Senegal has emerged as one of West Africa's most attractive investment destinations, owing much of its success to robust investor protections and a favorable regulatory environment. President Bassirou Diomaye Faye’s [TM1] government has made significant strides in improving the ease of doing business, with a focus on simplifying administrative processes and enhancing legal frameworks to protect both domestic and foreign investors. In recent years, Senegal has implemented tax incentives, such as exemptions and reduced customs duties, particularly in high-growth sectors like agriculture, energy, and infrastructure. These policies aim to boost foreign direct investment (FDI) while stimulating the local economy.

Political stability in the country has been a major factor in attracting investment, especially considering the broader context of West Africa. The government’s commitment to economic reforms and its clear vision for long-term development have created an environment that encourages investor confidence. Furthermore, Senegal's geographic location, positioned as a gateway to both Europe and sub-Saharan Africa, enhances its attractiveness as a trade and investment hub. As a result, the country continues to experience positive economic growth, driven in large part by foreign investment in infrastructure, energy, and agriculture, all of which are benefiting from strong legal protections.

8. Ghana

Ghana has become a beacon for investment in West Africa, thanks to its investor-friendly policies, robust legal framework, and emphasis on transparency. The country offers strong protections for property rights, with a legal system that enforces contracts effectively. Ghana has also created special economic zones (SEZs) with favorable tax incentives and customs duties exemptions to attract foreign investment, particularly in manufacturing and export-oriented industries. The government has prioritized infrastructure development in key sectors such as transportation, energy, and telecommunications[TM2] , which are crucial for the country’s long-term economic growth.

Ghana has invested heavily in infrastructure. The completion of the Pokuase Interchange, a four-tier highway interchange in Accra, has alleviated traffic congestion, reduced travel time, and improved road safety. Additionally, the Tema-Mpakadan Railway Line, a 96.7 km standard gauge rail line, enhances the movement of goods along the Eastern corridor, facilitating trade and economic activities. The Pwalugu Multipurpose Dam, a 60 MW hydroelectric power station, is under construction to provide renewable energy, irrigation, and potable water to the northern regions. Additionally, the government has reached an agreement with Italian energy company Eni to increase natural gas supply by 30 million standard cubic feet per day, enhancing energy security and supporting industrial growth. Ghana is also advancing its digital infrastructure. The government has announced reforms aimed at expanding affordable connectivity and building a future-ready digital workforce.

Just like Senegal, political stability and Ghana’s democratic institutions are further attractive factors for investors. Ghana has successfully maintained a stable political environment for several decades, making it an appealing destination for long-term investments. With a growing consumer market and a well-developed banking sector, Ghana continues to be a favorable investment destination. In addition to strong legal protections, Ghana’s ongoing focus on building its human capital and strengthening its regulatory frameworks adds to its appeal for investors seeking a predictable and safe investment environment.

7. Mauritius

Mauritius is often regarded as one of Africa’s most advanced financial hubs, offering an extensive set of protections for both local and international investors. The country has a highly regarded legal system based on the English common law, with clear and consistent regulations that ensure the enforcement of property rights and contracts. Mauritius also offers generous tax incentives, including exemptions on capital gains and dividends, making it an attractive location for investment. The government has signed multiple bilateral investment treaties (BITs), providing additional security to foreign investors seeking to establish or expand their operations in the country.

The East African Nation is strategically located in the Indian Ocean, combined with its strong economic diversification, further enhances its appeal to investors. The country has invested heavily in sectors such as tourism, real estate, and financial services, while also focusing on sustainable growth in industries like renewable energy and technology. These investments, along with the country’s efforts to maintain high standards of governance and reduce corruption, have contributed to Mauritius’s status as a top destination for both regional and global investment flows. Mauritius continues to play a key role as a gateway for investments into Africa, benefiting from its strong investor protections and stable economic policies.

6. Kenya

Kenya’s commitment to improving investor protections has positioned it as one of East Africa’s leading investment hubs. Over the years, the country has implemented various legal and regulatory reforms aimed at increasing the ease of doing business. Key reforms have strengthened intellectual property rights, streamlined business registration processes, and improved the efficiency of dispute resolution mechanisms. These changes have created a more predictable and transparent business environment, making Kenya an attractive destination for investors seeking to enter the East African market.

The growing infrastructure, particularly in the fields of transportation, energy, and telecommunications, further enhances its investment appeal. The country’s expanding consumer market, supported by a youthful population, offers significant opportunities for businesses in sectors such as fintech, agriculture, and manufacturing. Kenya’s strategic location as a regional trade hub, coupled with its increasing focus on innovation and digital transformation, adds to its attractiveness for investors. With the government’s continued efforts to enhance investor protections and foster economic growth, Kenya is poised to remain a key player in Africa’s investment landscape.

5. Tunisia

Tunisia’s legal and regulatory environment has become increasingly favorable for investors, particularly in sectors such as manufacturing, technology, and renewable energy. The country’s strong investor protections are evident through its well-established legal system, which enforces contracts and upholds property rights. Tunisia has also implemented various tax incentives, including exemptions on income and corporate taxes for foreign investors, especially in its special economic zones. These efforts have been designed to attract foreign capital and boost Tunisia’s position as a regional investment hub.

The country’s strategic location as a gateway between Europe and Africa has further bolstered its appeal to foreign investors. Tunisia’s well-educated workforce and commitment to economic reforms have also made it an attractive destination for investments in high-tech industries. Tunisia continues to focus on strengthening its legal and regulatory frameworks, which have contributed to an increasing influx of foreign direct investment (FDI). The government’s ongoing commitment to improving the ease of doing business and its efforts to address corruption are essential to its sustained growth and attractiveness to investors.

4. Morocco

Morocco is one of Africa’s most dynamic economies, driven by comprehensive reforms that protect investors and create a favorable business climate. The country has implemented the Casablanca Finance City (CFC) initiative, which offers tax exemptions and simplified administrative processes for foreign investors. These incentives are aimed at making Morocco a leading financial and business hub in the region. Morocco’s legal framework is well-established, with clear rules on property rights, contract enforcement, and investor protection, providing a predictable and secure environment for investment.

Morocco’s political stability, strong infrastructure, and proximity to Europe further enhance its investment appeal. The country has become a key player in sectors such as automotive manufacturing, renewable energy, and tourism. The Moroccan government’s focus on diversifying the economy, improving the business climate, and attracting FDI has been central to its success. As a result, Morocco continues to attract significant investment from both regional and international investors, thanks to its favorable legal protections and strong economic fundamentals.

3. South Africa

South Africa remains one of the most sophisticated and advanced economies in Africa, with a robust legal framework that offers strong protections for investors. The country’s financial services sector is the largest on the continent, supported by well-regulated markets and a developed legal system that ensures the enforcement of contracts and protection of property rights. South Africa has made significant strides in addressing concerns such as money laundering and is working to remove itself from the Financial Action Task Force’s grey list, enhancing its credibility in the global investment community.

The country’s diversified economy, including key sectors like mining, manufacturing, and finance, continues to attract significant foreign direct investment. Its world-class infrastructure, including a highly developed transport and communications network, further enhances its attractiveness to investors. With the government’s ongoing efforts to improve the ease of doing business and strengthen investor protections, South Africa remains a key investment destination in Africa, despite facing challenges such as political uncertainty and power shortages.

2. Rwanda

Rwanda’s transformation into a global investment hotspot is largely attributed to its commitment to strengthening investor protections and creating a business-friendly environment at the helm of President Paul Kagame. The country has made significant strides in simplifying administrative processes and improving its legal and regulatory frameworks. Rwanda offers a range of incentives for investors, such as tax exemptions and fast-tracked business registration, particularly in sectors like technology, agriculture, and infrastructure. Rwanda’s commitment to transparency, low levels of corruption, and political stability have helped it stand out as one of the best places to invest in Africa.

The government’s emphasis on infrastructure development, including improved transport and energy networks, has been central to Rwanda’s economic success. Rwanda’s strong focus on innovation and technology has attracted significant investments in the digital economy, positioning the country as a leader in East Africa. These developments, combined with strong investor protections, have created a conducive environment for both local and foreign investment. Rwanda continues to foster a culture of growth and opportunity, making it a key destination for investors looking for stability and long-term success.

1. Egypt

At the Apex is Egypt. The North African Nation leads Africa in investor protection, attracting substantial foreign direct investment through its robust legal framework, investor-friendly policies, and strategic location. The country offers a range of incentives to foreign investors, including tax exemptions and customs duties reductions, particularly in special economic zones and infrastructure projects. Egypt’s legal system is well-established, and the government has made significant efforts to ensure the enforcement of contracts, protect property rights, and maintain a transparent regulatory environment.

In 2024, Egypt attracted $46.58 billion in FDI, accounting for nearly half of Africa’s total FDI inflows, driven by major infrastructure projects and economic reforms. The government’s efforts to modernize key sectors, such as energy, manufacturing, and transportation, have resulted in increased foreign investment. Egypt’s strategic location as a gateway to the Middle East and North Africa (MENA) region, combined with its large consumer market and expanding economy, make it one of Africa’s most attractive investment destinations. As a result, Egypt remains the continent’s leading destination for investment, thanks to its strong investor protections and ongoing commitment to economic growth.