Africa presents significant opportunities, but suffers from misinterpretation. Many investors continue to treat the continent as if a single headline, ranking, or risk narrative can encapsulate its 54 distinct markets. According to Matthew McLean, this is a critical misstep. In an interview with Fence Africa 24, the founder and president of Insight Consulting explained that his firm developed the Africa Business and Risk Map 2026 to encourage investors to assess each country individually rather than generalising the continent.
The model utilises 36 indicators, including business conditions, financial stability, governance, infrastructure, technology adoption, tariff levels, market size, and capital risk. Its primary purpose is not to generate a simplified continental ranking, but to facilitate a more practical approach to investor due diligence.
“Africa is not one market,” he said. “It is 54 different countries, and each one has to be understood on its own merits.”
This distinction is significant because headline rankings have limited utility. A country may perform well overall, but this does not guarantee suitability for every sector. Indicators must be reweighted according to the specific business context. Sectors such as mining, agriculture, retail, and call centres each assess risk differently. Factors important to one investor may be less relevant to another.
The map serves as an initial screening tool, not a definitive decision-making resource. Once investors create a shortlist, substantive due diligence begins. That process involves on-site visits, stakeholder engagement, institutional assessment, and data verification. As McLean put it: “There is no substitute for being there.”
This matters especially in African markets, where personal relationships carry significant weight. Formal systems can be inconsistent or underdeveloped, making trust even more important. Business interactions are often personal, not because people lack an understanding of systems, but because those systems do not always function reliably.
Despite the abundance of data in the index, leadership remains the most critical factor. Côte d’Ivoire serves as a prime example. When McLean first worked there in 2011, the country had recently emerged from conflict. Sustained political leadership drove its significant improvement since then, prioritising reform and building competitiveness. This perspective similarly informs the analysis of other markets.
Mauritania warrants increased investor attention due to its leadership’s demonstrated commitment to enhancing business conditions. Similarly, Togo remains underappreciated despite consistent progress and a favourable strategic position in West Africa.
In contrast, the Democratic Republic of Congo, Angola, and Guinea continue to present challenging environments. The issue is not a lack of opportunity. Investors need extensive local knowledge, reliable partners, and heightened caution. Congo offers substantial potential, but those who enter without a thorough understanding of local conditions will likely encounter difficulties.
The belief that larger markets are inherently superior deserves scrutiny. Companies that need scale will naturally look to South Africa, Nigeria, Morocco, Egypt, and Kenya. However, firms that do not depend on a large consumer base will often find medium-sized and smaller markets offer a more straightforward entry into Africa.
Countries including Côte d’Ivoire, Ghana, Zambia, Cape Verde, Mauritius, Mauritania, and Togo offer favourable operating conditions, free of the complexities typically associated with larger markets. The central argument is clear: a stable, rules-based environment often generates greater value than a large market characterised by persistent operational challenges.
This is a common area where investors misinterpret GDP growth. While robust growth figures may appear attractive, they often fail to capture issues such as informality, labour conditions, institutional weaknesses, or the challenges of translating meetings into tangible outcomes.
Ghana exemplifies this dynamic. Despite its strengths in democratic credibility, human capital, and potential, the country continues to face challenges related to debt instability and restrictive financing conditions. Nevertheless, both Ghana and Zambia currently appear to be potential recovery cases following recent difficulties.
No index should be conflated with the actual market. The map guides investors through the initial stages of due diligence. It cannot replace comprehensive decision-making.
The primary value of the map is its ability to prompt more insightful questions from both governments and investors. For governments, the focus is on competitiveness: identifying weaknesses that deter investment and determining which reforms could enhance the country’s attractiveness. For investors, the map highlights areas for investigation, critical questions, and negotiation points prior to capital deployment.
The overarching message is not a lack of opportunity in Africa; it is the opposite. Opportunities exist in nearly every market across the continent. The real challenge is accurately assessing each one. That requires investors to move beyond the notion that a single narrative can capture a continent of 54 markets.
