An Investor’s Guide to Africa

Global investors are looking at the 54 nations that make up Africa with fresh eyes, not only for their vast natural resources but also for the region’s role in the realignment of trade worldwide.

Tens of billions of dollars have been invested in the continent’s industries so far this year—from agriculture to data centers—with more expected as US President Donald Trump’s tariffs reshape global alliances. In the first half of 2025, China inked $30.5 billion in construction contracts with African nations, including railways in Nigeria and ports in Egypt, spending almost five times more than during the same period last year, according to a report from Australia’s Griffith University and China’s Green Finance & Development Center. Government bodies and businesses in Asia, Europe and the Middle East are also plowing money into African countries, some of which, including Egypt and Kenya, have US-reciprocal tariff rates of only 10%. (India’s, by comparison, is 50%.)

The appeal is clear: Africa is home to the world’s youngest population and some of its fast-growing economies. The International Monetary Fund projects it will grow faster than any other region over the next five years. The African Continental Free Trade Area (AfCFTA), officially introduced in 2021 and expected to be fully operational by 2035, is forecast to become the largest free-trade bloc in the world, unlocking access to a $3.4 trillion market. In November an African nation will host the Group of 20 leaders for the first time, in Johannesburg. A country on the continent has never held the Olympic Games, but Formula One is eyeing Africa again after more than 30 years.

Yet while Africa is increasingly relevant in global trade, entertainment and politics, there are also risks for investors. The continent is facing an infrastructure financing gap of as much as $108 billion a year, according to the African Development Bank, including a shortage of roads, navigable rivers and power. Policy uncertainty, skill gaps, high youth unemployment and rising debt burdens are also challenges in many of its economies. Of course, every country and sector is distinct. “Successful engagement in Africa necessitates a nuanced, long-term perspective,” says Akin Dawodu, Citigroup Inc.’s banking head for sub-Saharan Africa.

To help investors understand the industries and locations where they might deploy their capital, Bloomberg Economics developed a scorecard for 19 African countries, assigning risk ratings based on five key factors: economic strength, fiscal strength, institutions and governance, infrastructure, and external vulnerability. The risk-o-meter draws on World Bank and IMF data, incorporating dozens of indicators such as gross domestic product per capita and logistics performance, which allow investors to determine the attractiveness of countries based on their own risk tolerance. The list includes Africa’s largest economies, plus several others that stand out for features that tend to attract investors like rich commodity reserves, established financial hubs and thriving business tourism centers. A larger number, denoted in orange, signifies lower relative risk.

Bloomberg Businessweek also spoke to investment agencies across the continent and tracked deal flows in key sectors to round out our inaugural Investor’s Guide to Africa. The analysis focuses primarily on the industries on the rise in the most investable countries. This list is in no way comprehensive, but it’s indicative of the kind of deep-pocketed money that’s making inroads in the world’s second-most-populous continent. Despite navigable risks, Dawodu says, Africa has been firmly established “as a critical and exciting frontier for global capital.”