The 2025 report, published by a team of economists at the IMD World Competitiveness Center (WCC), explores the specificities and limitations that apply to the African continent when attempting to measure its competitiveness.
It evaluates all 54 African economies across four pillars – economic challenges, governance and institutions, managerial dynamics, and societal empowerment – using 80 indicators. Countries are ranked in eight tiers from A1 (highest) to D2 (lowest).
“The global economy is at a crossroads. The ongoing trade war between the major global economies signals that a rebalance of power may occur in the foreseeable future. In this context, Africa is experiencing an important moment in its economic development, exhibiting vast potential to become a global engine of growth and innovation,” the report says.
Currently, the WCC’s flagship ranking, the IMD World Competitiveness Ranking, includes six African economies: Botswana, Ghana, Kenya, Namibia, Nigeria, and South Africa.
It does not currently assess more because it lacks sufficient partner institutes across the continent, whose role it would be to help measure intangible aspects of the economy, such as attitudes and values, by distributing the IMD Executive Opinion survey.
The WCC is on an active drive to seek such collaborations, and this report is feeding those efforts, as its data set offers a nuanced understanding of those factors that may have an impact on the prosperity, and thus competitiveness, specifically of African economies.
The Africa Prosperity Rating (APR) breaks with traditional approaches that rely heavily on GDP and a limited set of economic indicators by using a methodology that enables policymakers and researchers to pinpoint structural deficiencies and benchmark performance in a meaningful and multidimensional way.
Mauritius, Seychelles, and South Africa serve as benchmarks for the continent
Mauritius, Seychelles, and South Africa emerge as the continent’s top performers. They are all rated A1 and therefore appear in the top tier of the APR.
Their leading positions are the result of robust economic foundations, strong governance frameworks, and advanced societal outcomes.
Mauritius leads with near-universal financial access (90.5%) and deep capital markets, while Seychelles boasts the continent’s highest Human Development Index (HDI) score at 0.802. South Africa, despite governance weaknesses, remains a powerhouse in financial sophistication, with stock market capitalization at 289% of GDP.
Other strong performers include Botswana, Cabo Verde, Egypt, Kenya, Namibia, and Tunisia in the A2 tier, driven by better institutional frameworks and investment in education. Namibia allocates nearly 10% of its GDP to schooling.
The challenges of fragility and inequality
The report warns of a widening gap between Africa’s prosperity leaders and lagging economies. While top-tier countries diversify exports and attract investment, resource-dependent states remain vulnerable to commodity price shocks.
Oil still accounts for 36% of Africa’s exports, and the continent’s merchandise trade contracted by 6.3% in 2023, erasing $100bn in value.
Many nations remain mired in structural weaknesses, governance challenges, and social disparities.
Chad, Somalia, South Sudan, and Sudan occupy the D2 tier, reflecting systemic crises marked by conflict, institutional collapse, and extreme poverty. These nations suffer from HDI scores below 0.40, minimal internet penetration, and severe fiscal distress.
Education and health deficits
Sub-Saharan Africa faces critical teacher shortages, with 70% of countries lacking adequate staff, and nearly 60% of adolescents aged 15–17 out of school. Gender inequality persists, with women’s labor participation at 56% versus 73% for men, and cultural norms limiting girls’ access to education.
Healthcare systems operate at just 49% of potential, according to WHO statistics, while environmental hazards such as air pollution caused 1.1 million deaths in 2019 and an estimated 1.96 billion IQ points lost among children under 10 due to PM2.5 exposure.
The report identifies governance quality, economic diversification, societal empowerment, and macroeconomic stability as the decisive drivers of future prosperity.
“Africa’s youthful population is its most dynamic asset,” the report notes, urging investments in education, digital infrastructure, and inclusive growth models to unlock a demographic dividend.
With initiatives like the African Continental Free Trade Area (AfCFTA) offering opportunities for integration, the report calls for bold reforms to combat corruption, strengthen institutions, and build resilience against climate and geopolitical shocks.
Africa’s prosperity story is one of contrasts – pockets of progress amid widespread fragility. The challenge now is to translate growth into inclusive development and ensure that the continent’s vast potential does not remain untapped.
The APR is the first step in a broader effort by the WCC to deepen its understanding of prosperity dynamics in developing regions.
Next year, the WCC will release a similar competitiveness assessment for Latin American economies, expanding the global evidence base that can help policymakers design more inclusive and resilient pathways to growth.
