Africa’s most competitive economies in 2025: Kenya ranked first
Only a handful of African countries qualified for the IMD World Competitiveness Ranking in 2025. This is not because other nations performed poorly, but because IMD requires complete, reliable, year-round data.
In practice, most African economies lack the continuous, verifiable datasets that IMD uses to assign a global rank. In 2025, just six countries met this standard. Their inclusion shows what worked, what held them back, and why delivering measurable results mattered more than policy announcements.
IMD ranks countries based on execution rather than intentions. It measures 336 indicators across four pillars: economic performance, government efficiency, business efficiency, and infrastructure. The methodology combines hard data with surveys of business executives, capturing both measurable outcomes and the perceptions of those operating in each economy.
Here is how the six African countries that qualified performed, starting with the continent’s top performer.
1. Kenya | 56th globally
Kenya leads Africa in 2025 due to a combination of reforms and measurable results. Fiscal controls, streamlined public spending, and steps to stabilise the currency strengthened macroeconomic indicators. Infrastructure improvements at Mombasa port and new energy projects eased bottlenecks and improved reliability.
Digitalisation has been another key advantage. Faster licensing, simplified tax systems, and broader digital public services boosted business confidence and efficiency. Electricity reliability and fiscal pressures remain challenges, but Kenya’s consistent execution of reforms explains its position at the top of the continent.
2. Botswana | 59th globally
Botswana benefits from long-term governance stability. Strict budget management, transparent public finances, and clear regulatory systems helped maintain its position. Investments in transport, telecommunications, and renewable energy produced steady, measurable gains.
Efforts to diversify the economy through tourism and financial services are gradually reducing reliance on diamonds. Botswana’s methodical and predictable approach has kept it firmly among Africa’s upper-tier performers.
3. Ghana | 61st globally
Ghana improved its position thanks to progress under an IMF programme. Tighter spending controls, better revenue collection, and improved fiscal reporting enhanced government-efficiency scores. Energy supply also stabilised through new generation and transmission projects.

Digital services expanded, including stronger ID systems, wider e-payment adoption, and updated online business regulations. Structural issues, such as high public debt and a limited industrial base, continue to slow faster improvements.
4. South Africa | 64th globally
South Africa maintains strong institutions, with a mature financial system, independent judiciary, and credible regulatory bodies. These strengths raised scores in government and business efficiency.
Challenges remain in infrastructure and energy. Power outages still disrupt production, and ports and freight rail require modernisation. Private-sector participation and ongoing reforms aim to improve efficiency, but progress has been gradual. The ranking reflects a country with strong foundations facing operational and infrastructure constraints.
5. Nigeria | 67th globally
Nigeria’s score shows the contrast between its economic potential and persistent structural challenges. The government implemented fiscal and monetary reforms, including subsidy adjustments, exchange-rate unification attempts, and revenue-expansion measures.
Digital reforms, such as national ID systems, stricter verification in banking and telecoms, and real-time tax monitoring, improved compliance and reduced delays. The private sector remains strong with a large workforce and a growing technology ecosystem, but power shortages and high operating costs continue to limit productivity.
6. Namibia | 68th globally
Namibia earned its place by focusing on practical reforms. Investments in energy-including new solar plants, approvals for independent power producers, and transmission upgrades-reduced reliance on imported electricity and improved reliability.
Logistics at Walvis Bay port improved container handling and reduced turnaround times, encouraging private-sector activity nearby. The Ministry of Finance tightened oversight of state-owned companies and strengthened reporting. While modest, these measurable reforms gave Namibia credibility in IMD’s assessment.
Author
Kenneth Mwenda
Kenneth Mwenda is a business, sports, and politics digital writer with over seven years of experience in journalism, covering breaking news, feature stories, and in-depth analysis across a range of beats.
For inquiries, he can be reached at [email protected]
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