IMD Africa Prosperity Rating 2025
Africa Prosperity Rating 2025
This report measures prosperity using 80 indicators to provide a broad African Prosperity Rating. Our flagship publication, The IMD World Competitiveness Ranking, uses more than 250 statistical data points combined with a comprehensive executive opinion survey to provide a more detailed evaluation of competitiveness. The statistics provide an objective snapshot of the past, while the survey is much more current and measures the perceptions of business executives.
We currently measure 69 countries. Whether or not an economy is included is based on the following conditions:
How well the economy is covered by international organizations (such as UN, WTO, and IMF/WB) in terms of statistical data. The availability of comparable international statistics is essential to the World Competitiveness Yearbook’s success.
The economic wealth, stability and regional importance of the economy.
The availability of a Partner Institute within the economy to help with the statistics and Executive Opinion Survey.
Full report
The IMD Africa Prosperity Rating offers a robust framework for assessing prosperity in Africa through a holistic, data-driven lens. Unlike traditional approaches that rely heavily on GDP and a limited set of economic indicators, our methodology integrates four interconnected pillars: economic challenges, governance and institutions, managerial dynamics, and societal empowerment.
What is competitiveness, and why does it matter for Africa?
Economic competitiveness is the capacity of economies to create and sustain conditions that foster long-term value creation. This goes beyond productivity or GDP—it includes economic growth, job creation, quality of life, and opportunities for citizens.
In this series of reports, we explore key competitiveness principles such as the role of economic stability and strong institutions in building prosperous societies.
There is no universal formula for competitiveness. While Paul Krugman argued that an excessive focus on it can distract governments from improving citizens’ welfare, we view competitiveness as broader than productivity. It results from the combined impact of regulation, institutions, and collaboration between public and private sectors.
Competitiveness depends on multiple factors—sound governance, effective regulation, strong health and education systems, and innovation-driven enterprises. Productive economies attract investment, create jobs, and foster growth, but true competitiveness turns short-term gains into lasting and inclusive benefits.
Ultimately, competitiveness requires a fair system that redistributes welfare and enhances quality of life. Productivity is necessary but not sufficient; sustainable competitiveness comes from balancing economic performance with social equity.
For African economies, the challenge lies not only in developing productive inputs but also in managing them effectively. Strong institutions, reliable infrastructure, and good governance are essential to support entrepreneurship, attract investment, and build long-term prosperity.
There are six channels through which competitiveness is particularly relevant for African economies:
1. Economic growth and development
Competitiveness encourages a cycle of positive economic reinforcement whereby it offers a framework conducive to greater innovation and productivity, which in turn spurs economic activity and growth, and leads to higher wages. For African economies – particularly those that rely heavily on their natural resources to achieve growth – enhancing competitiveness can provide a path towards diversifying economic activities and reducing their dependency on volatile commodity markets. Such a process can ultimately lead to a more robust economic base and more sustainable development.
2. Attracting investment
Economies with high levels of competitiveness are more likely to be attractive to foreign and domestic investors alike. Any improvements by African economies in measures of competitiveness, such as the quality of governance, infrastructure development, and business-friendly environment, could significantly improve the appeal of the economies as investment destinations. The latter could further drive job creation, technological transfer, and the retention of domestic talent, as well as attractiveness to foreign talent.
3. Job creation and poverty reduction
With the African continent experiencing rapid population growth and an increasing number of economically active individuals, having competitive local firms and industries can play a critical role in creating new jobs to absorb this growing labor force. Promoting competitiveness-enhancing policies such as investments in infrastructure can support industries and businesses and allow them to thrive, which can in turn generate new employment opportunities, reduce unemployment, and ultimately lead to lower poverty levels.
4. Resilience to external and global shocks
Some countries on the continent are still suffering from a lack of economic diversification. The latter is partly the result of inadequate development policies undertaken in the 1980s and 1990s. The adoption of those policies came following stringent and largely ineffective Structural Adjustment Programs (SAPs), imposed by International Financial Institutions as a precondition for receiving loans or debt restructuring. Competitiveness in this context can equip economies with the necessary tools to better withstand global challenges such as pandemics, climate-related shocks, or economic recessions. It does so by building strong institutions, encouraging investment in infrastructure, and fostering innovation. Such mechanisms, in the long run, lead to increased resilience to external shocks and changing global dynamics.
5. Improving citizens’ quality of life
The well-being of people is at the heart of competitiveness. Improving education, healthcare, infrastructure, governance, and welfare systems – all key pillars of competitiveness – directly impacts citizens’ quality of life. In the African context, depending on the economies’ initial productive inputs and demographic structures, using available resources to address gaps in these areas can lead to much broader societal benefits.
6. Regional integration and increased global influence
Trade agreements and the diversity in the number of export partners and goods play a key role in improving the competitiveness of economies. Through initiatives like the African Continental Free Trade Area (AfCFTA), effective since 2019 and fully operational since 2021, economies on the continent can strengthen regional trade and collaboration; not only boosting intra-African trade but also positioning Africa as a stronger player in global markets.
Competitiveness goes beyond economic metrics—it is about building agile and resilient societies capable of facing global challenges and seizing new opportunities. For African economies, strengthening competitiveness is key to achieving sustainable growth, inclusivity, and global relevance. Long-term success depends on strong institutions, innovation-friendly policies, respect for the rule of law, and future-oriented education systems.
This report identifies the key barriers to African competitiveness and highlights economies leading the way in overcoming them. By adapting our framework to Africa’s realities, it offers a data-driven foundation for effective policymaking and long-term prosperity.
Rating, Alphabetical by Country
Discover our latest research and results on how countries compete to lay the foundations for sustainable value creation.
