Top African Countries Leading in Global Competitiveness: IMD 2025 Ranking

In Summary 

• Only six African countries met the IMD 2025 minimum data threshold, meaning they provided consistent, verifiable year-round statistics.
• Their gains came from executed reforms in energy reliability, targeted logistics upgrades, fiscal correction, and tighter policy coordination.
• Digital tools such as national ID systems, real-time verification, and simplified licensing improved compliance, speed, and transparency.
• The 2025 results show that countries with documented progress ranked highest, proving that execution, not plans, shaped competitiveness.

Deep Dive!!

Lagos, Nigeria, Friday, November 28 - The IMD World Competitiveness Ranking is an annual evaluation of how effectively countries use their economic, institutional, and human resources to achieve long-term productivity. 

It offers a clear picture of how well national systems function without repeating policy ambitions or untested reforms.

IMD is one of the few global frameworks that combines hard data with executive-level survey insights, giving a balanced view of actual economic performance and perceived business conditions.

Unlike the WEF Global Competitiveness Index, which focuses heavily on structural drivers of growth, IMD emphasizes execution, real-time outcomes, and how efficiently countries convert resources into competitiveness.

The ranking assesses 336 indicators which are grouped into four pillars of economic performance, government efficiency, business efficiency, and infrastructure.

These pillars capture institutional strength, investment climate, workforce capacity, and the depth of technological and physical systems. Countries that score well typically demonstrate stable regulations, sound fiscal management, and strong private-sector activity.

For Africa, eligibility alone is a significant marker, as many countries are excluded annually due to insufficient or inconsistent data. 

In 2025, only six African states met the full requirements, offering a limited but revealing picture of the continent’s competitive standing. 

Meeting these criteria requires verified, year-round datasets, meaning the countries that appear here have the institutional structure to support global-level assessment.

The following breakdown ranks them from 6 to 1, based strictly on IMD 2025 results.

6. Namibia - 68th Globally

Namibia’s appearance in the 2025 IMD Competitiveness Ranking reflects a governance system that has maintained institutional order while gradually strengthening the operational foundations needed for measurable economic performance. The country’s regulatory environment has long been one of the most predictable in the region, and recent infrastructure and policy adjustments provided the concrete indicators required for IMD data eligibility.

Over the past two years, Namibia shifted from broad policy ambition to project-level execution, particularly in energy and logistics. This movement toward verifiable outcomes is a key reason it qualified for the 2025 dataset.

A major contributor to its improved showing is the government’s push to stabilise domestic power systems. Independent power producer approvals were accelerated, grid-connected solar capacity expanded, and targeted transmission upgrades advanced. These steps reduced Namibia’s dependence on imported electricity and produced measurable improvements in reliability which is one of IMD’s core infrastructure indicators. The reforms were not exhaustive, but they showed enough tangible progress to boost Namibia’s credibility in the ranking.

Logistics and trade facilitation also played a defining role. The expansion of the Walvis Bay port, improved container-handling efficiency, and shorter vessel turnaround times strengthened Namibia’s position as a competitive regional entry point. These gains encouraged new private-sector activity in port-adjacent services, including offshore energy support and engineering operations. While Namibia’s logistics network still faces scale limitations due to market size, its improvements were consistent enough for IMD to classify them as structural rather than incidental.

Governance and public-enterprise reforms formed another pillar of Namibia’s competitiveness profile. The Ministry of Finance and Public Enterprises tightened reporting requirements for state-owned companies, introduced performance-linked accountability, and reduced unconditional support to chronically underperforming entities. This shift did not overhaul the system but signalled more disciplined public-sector management, a point increasingly highlighted by executive survey respondents. These actions helped strengthen perceptions of policy coherence and institutional reliability.

Namibia’s forward-looking ambitions in hydrocarbons, green hydrogen, and water security add further weight to its competitiveness standing. Offshore exploration activity, new project commitments, and early-stage infrastructure planning increased investor interest and lifted indicators tied to investment flows and diversification. Large-scale hydrogen proposals and new desalination capacity reflect attempts to reduce long-term structural vulnerabilities. Although many of these initiatives remain in development, IMD’s methodology rewards clear, documented progress toward high-value economic activity.

Compared to its regional peers, Namibia’s reform pace has been steady and execution-focused rather than rapid, which helped it maintain a competitive foothold in the 2025 ranking despite market-size and skills-pipeline constraints.

5. Nigeria - 67th Globally

Nigeria’s 2025 IMD placement reflects the tension between the strength of its market fundamentals and structural constraints that continue to limit national competitiveness. The country qualifies for IMD primarily because it has the scale, data availability, and institutional reporting capacity required for global comparison, which many African economies still lack. Its competitiveness profile is shaped by a large, opportunity-rich economy undergoing macroeconomic adjustments alongside a governance system working to restore predictability after prolonged policy volatility.

Recent macroeconomic reforms played a central role in Nigeria’s 2025 outcome. Efforts to stabilise public finances including subsidy reforms, exchange-rate unification attempts, and revenue-expansion measures produced measurable indicators tracked under economic performance and government efficiency. While these reforms caused short-term inflationary pressures, they strengthened budget transparency, improved fiscal data reliability, and signalled a shift toward rule-based fiscal management. These actions laid the groundwork for future competitiveness gains by moving Nigeria closer to a disciplined macroeconomic framework.

Institutional and regulatory restructuring also shaped Nigeria’s ranking. The expansion of national ID systems, enforcement of digital verification across banking and telecoms, and real-time tax and revenue monitoring had the largest measurable impact on compliance, speed, and administrative predictability, modernising processes that had long hindered business efficiency. Regulatory consolidation in financial services and improvements in capital-market oversight further reduced duplicative compliance burdens, providing clearer data points for IMD’s institutional reliability and digital infrastructure scores.

In the private sector, Nigeria’s competitiveness continues to rely on its dynamic enterprise ecosystem. Despite macroeconomic pressures, the country retains one of Africa’s most active entrepreneurial sectors, a deep fintech base, and a large, adaptable workforce that strengthens parts of the business-efficiency pillar. However, inconsistent power supply, high operating costs, and uneven vocational skills keep productivity uneven, explaining why Nigeria performs well in some enterprise indicators but lags in workforce-related metrics.

Looking ahead, Nigeria’s IMD trajectory will depend on the execution of its medium-term structural agenda. Plans to expand domestic refining, modernise the grid, scale gas-based industrialisation, and formalise the informal economy could shift competitiveness indicators if implemented consistently. Transport-corridor rehabilitation, broadband expansion, and agricultural value-chain industrialisation provide a roadmap, but IMD rankings respond only to measurable, executed outcomes rather than policy intent. Nigeria’s 2025 position therefore reflects a transitional moment: a system with institutional capacity and economic weight, but still held back by structural issues that require sustained multi-year correction.

4. South Africa - 64th Globally

South Africa’s position in the 2025 IMD ranking reflects both the sophistication of its institutional architecture and persistent weaknesses that have reshaped its economic trajectory over the past decade. The country remains one of Africa’s most data-rich and analytically transparent economies, allowing a comprehensive assessment under IMD’s 336-indicator framework. Its placement reflects strong institutional foundations, an independent judiciary, advanced financial markets, and established regulatory systems coexisting with infrastructure deterioration, governance fragmentation, and prolonged energy insecurity.

A major determinant of its 2025 score is the continued stabilisation effort around the national power sector. While load-shedding pressures have eased compared to peak crisis years, residual instability still affects IMD indicators linked to productivity, business efficiency, and infrastructure reliability. The government’s shift toward a more decentralised energy model opening the grid to private generation, accelerating embedded-power projects, and expanding renewable procurement produced early improvements, though not enough to fully offset long-term capacity gaps. These gains were significant for IMD’s technical scoring but insufficient to dramatically boost overall competitiveness.

Regulatory capability and financial-system maturity remain South Africa’s strongest assets. The country’s banking system is among the most robust in the Global South, with deep capital markets and credible regulatory institutions. These strengths consistently support the government-efficiency and business-efficiency pillars, particularly in financial stability, investor protection, and administrative process quality. Policy uncertainty in sectors like mining, telecommunications, and logistics, coupled with fragmented governance between national, provincial, and local levels, continues to limit the full impact of these institutional advantages. Business sentiment, however, has shown cautious improvement, reflecting optimism around regulatory predictability and private-sector engagement.

Logistics constraints form another structural anchor on South Africa’s competitiveness. Port congestion, rail inefficiencies, and slow turnaround times in bulk export corridors have weighed on trade performance indicators under economic performance and infrastructure. Ongoing reforms including partial concessioning of port terminals, restructuring of the freight rail system, and greater openness to private participation indicate a policy trajectory capable of lifting future competitiveness scores. Yet, as of the 2025 cycle, these interventions remain in progress, so their benefits are not fully reflected in global metrics.

Looking forward, South Africa’s competitiveness depends on whether institutional strength can be matched with consistent reform execution. Energy diversification, port rehabilitation, technology-sector expansion, and industrial policy recalibration provide a coherent roadmap. The private sector continues to innovate, especially in finance, services, and advanced manufacturing. IMD rewards delivered outcomes rather than policy aspirations, meaning South Africa’s 2025 ranking captures a country with high structural potential but operational constraints, leaving substantial room for improvement if reforms are sustained.

3. Ghana - 61st Globally

Ghana’s 2025 IMD placement reflects a country that re-entered the competitiveness conversation by combining short-term macro stabilisation with targeted, verifiable policy moves. Its eligibility and score improvements stem from fiscal discipline under an IMF-supported program, energy-sector interventions, and a coordinated digitalization push that created the hard data IMD requires. Yet persistent structural constraints, high public debt, an underdeveloped industrial base, and infrastructure bottlenecks keep Ghana solidly in the middle of the global field rather than among higher-ranked African peers.

A key driver of Ghana’s 2025 outcome was macroeconomic adjustment and renewed policy credibility under the IMF Extended Credit Facility. Program reviews in 2025 supported fiscal consolidation, enhanced revenue measures, and public-expenditure controls, all of which strengthened government efficiency and economic performance indicators. These actions also improved statistical reporting, fiscal transparency, and policy predictability, which were reflected in both hard IMD data and executive survey perceptions.

Energy and infrastructure improvements contributed to the second set of measurable gains. Public and private generation and transmission projects reduced supply volatility and increased installed capacity and transmission reliability. Transport and logistics initiatives improved throughput at key terminals, raising indicators linked to trade facilitation and business efficiency. These tangible, project-level improvements were more impactful for IMD scoring than aspirational strategy papers.

Digitalization and regulatory modernization formed the third measurable strand. Ghana’s national digital-economy strategy, reforms in public digital services, and strengthened digital ID and payments infrastructure improved administrative processing times and formal-sector outreach. Draft e-commerce and regulatory updates also created hard metrics and positive survey responses on ease of doing business in digital channels.

Nevertheless, key constraints cap Ghana’s upward mobility. Public debt and the need for sustained fiscal consolidation limit policy space for countercyclical investment, and energy reliability, while improved, remains inconsistent. Relative to top African performers, Ghana’s reforms are advancing steadily but at a slower pace, and structural challenges still weigh on overall competitiveness. The 2025 position therefore captures a country at an inflection point materially improving policy management and project execution, but still navigating significant structural headwinds.

2. Botswana - 59th Globally

Botswana’s 2025 IMD ranking reflects a continuation of its long-standing governance model, which blends disciplined macroeconomic management with pragmatic institutional frameworks. Decades of fiscal prudence, robust regulatory systems, and transparent administration have consistently produced measurable outcomes across IMD’s government-efficiency and business-efficiency pillars, particularly in fiscal management, public-sector reliability, and corporate governance. Despite these strengths, structural limitations including a small domestic market, dependency on mineral exports, and slow economic diversification anchor Botswana in the middle tier of global rankings. This placement represents a modest improvement from previous IMD iterations, reflecting steady, incremental progress rather than rapid gains.

A key contributor to Botswana’s score is the government’s continued emphasis on fiscal prudence and strategic public investment. Ministries maintain strict budgetary controls aligned with the National Development Plan (NDP 11), and revenue management from diamond exports has been reinforced with enhanced transparency and auditing measures. These practices strengthen IMD’s government-efficiency metrics and provide a reliable policy environment, reflected in positive executive survey responses on rule-making quality.

Infrastructure and sectoral modernization also support competitiveness. Investments in transport networks, telecommunications expansion, and renewable energy integration have produced measurable gains in operational reliability and business efficiency. Private-sector engagement in logistics and ICT projects has improved throughput and reduced bottlenecks, offering IMD tangible data points that demonstrate actual progress rather than aspirational plans.

Botswana’s forward-looking policy initiatives highlight potential for further improvement. Diversification efforts targeting tourism and financial services are already in implementation, delivering measurable outputs, while initiatives in knowledge-based industries remain in planning stages. Complementary programs to strengthen workforce skills through vocational and higher education, along with public-private partnerships in technology and innovation, provide real-world progress that bolsters business efficiency and infrastructure indicators. Together, these actions explain why Botswana maintains a strong presence in the 2025 IMD ranking and lay the groundwork for potential upward mobility in future assessments.

1. Kenya - 56th Globally

Kenya’s position at the top of African entries in the 2025 IMD Competitiveness Ranking reflects a combination of rapid structural reforms, institutional modernization, and sustained policy execution that distinguishes it from regional peers. Over the past several years, the government has undertaken decisive measures across macroeconomic management, infrastructure development, and regulatory reform. These actions have produced tangible outcomes that IMD recognizes as central to competitiveness.

By leveraging its relatively large domestic market, diverse economy, and regional integration, Kenya has achieved measurable gains that outpace other African countries in both executive survey perceptions and hard data indicators. A central factor in this ranking is macroeconomic stabilization coupled with fiscal and monetary prudence. Reforms to unify exchange rates, tighten fiscal controls, and streamline public expenditure have produced verifiable reductions in budget deficits and inflation volatility, improving executive confidence and directly influencing IMD’s government-efficiency pillar.

Infrastructure development has also played a decisive role. Investments in transport corridors, port expansion, and energy projects have enhanced operational efficiency and business reliability. Upgrades to the Mombasa port and new independent power projects have partially mitigated historical bottlenecks, feeding directly into IMD’s infrastructure and business-efficiency indicators, though implementation gaps remain in some regions.

Regulatory reform and digitalization complete Kenya’s competitiveness edge. Modernized administrative processes, streamlined tax and licensing procedures, and strengthened corporate oversight have reduced processing times and compliance costs. Combined with policies supporting innovation, technology adoption, and regional integration, these measures expand formal-sector activity and investor confidence. Kenya’s ability to pair ambitious reform with measurable outputs rather than aspirational statements sets it apart, justifying its position as the continent’s highest-ranked economy in IMD 2025.

Finally, Kenya’s structural advantages, sizable domestic economy, regional influence, and economic diversity amplify the impact of these reforms. Ongoing initiatives in logistics, energy, digital governance, and private-sector engagement provide multiple pathways for incremental competitiveness gains. However, risks remain, including electricity reliability issues, fiscal pressures, and reliance on external trade conditions, which could moderate future improvements. The combination of deliberate execution, measurable outcomes, and structural advantages explains why Kenya leads African economies in the 2025 IMD ranking and positions it to maintain or improve its standing as reforms deepen.

The 2025 IMD ranking shows that African competitiveness hinges on effective policy execution, institutional strength, and targeted reforms. Kenya and Botswana lead by combining strong governance with tangible outcomes, while Nigeria, South Africa, Ghana, and Namibia demonstrate progress tempered by structural challenges.

Future gains will depend on the consistent delivery of energy, infrastructure, and digital reforms. Countries that successfully translate policy into concrete improvements will strengthen competitiveness, positioning Africa for sustained economic resilience. Looking ahead, factors such as continued data reliability, the impact of regional shocks, and the pace of energy-sector reforms will shape how African nations perform in the 2026 IMD rankings.