A new survey and investment-focused study released in early 2025 have ranked Cairo as Africa’s most attractive city, while Lagos emerged as the only Nigerian city in the continent’s top ten.
The findings were published separately by The Africa Report and Jeune Afrique, two pan-African publications that track economic trends and urban development.
The Africa Report focused on foreign investment, business activity, infrastructure, and governance. Jeune Afrique based its 2025 results on a public survey of more than 7,000 residents across Africa, assessing perceptions of governance, safety, service delivery, and overall quality of life.
Cairo ranked first
Cairo topped both economic and perception-driven assessments. With a population of more than 22 million, Egypt’s capital has become the continent’s largest magnet for foreign investment.
According to The Africa Report, Cairo attracted approximately $11.3 billion in foreign direct investment between 2019 and 2023, with $4.3 billion recorded in 2023 alone, based on data from fDi Intelligence. Much of that investment went into real estate, energy, manufacturing, and digital services.
In a statement published with the report, The Africa Report described Cairo as “a city with unmatched scale, labour supply and capital inflows on the continent.”
Kigali and Nairobi follow closely
Rwanda’s capital, Kigali, ranked second. It was credited for strong governance, low corruption levels, and public sector efficiency. Over the past decade, Kigali has gained attention for its urban planning policies, clean streets, and consistent security record.
Kenya’s capital, Nairobi, ranked third. The city remains East Africa’s largest technology and business centre, hosting major multinational offices and a broad startup ecosystem. It is often referred to as hosting nearly half of East Africa’s venture capital funding.
Lagos ranked eighth, Nigeria’s only entry
Lagos ranked eighth overall and is the only Nigerian city in the top 10. The city is West Africa’s largest commercial hub and Nigeria’s centre for financial technology, trade, entertainment, and manufacturing.
The Africa Report said Lagos “combines population scale with financial ambition,” noting that Nigeria’s largest city hosts most of the country’s tech startups and venture-funded companies.
Lagos State authorities welcomed the ranking, saying it shows the city’s private-sector growth despite ongoing infrastructure challenges.
Cape Town falls from first to fourth
Cape Town, which previously ranked first in earlier editions of Jeune Afrique’s survey, dropped to fourth in 2025. The publication said the decline was due not to economic weakness but to faster progress by other cities.
Jeune Afrique stated that cities such as Cairo, Kigali and Nairobi were “seen by respondents as advancing more quickly in governance, administration and economic coordination.”
However, Cape Town’s tourism and transport statistics remain strong. According to Western Cape investment agency Wesgro, Cape Town International Airport recorded 287,000 international passengers in October 2024 alone, a 15 percent increase compared with the same month the previous year. International arrivals between January and October reached nearly 2.6 million passengers.
Wesgro’s chief executive said the city’s economic fundamentals remain solid.
“The Western Cape is driven by a services-led economy with strong infrastructure and global connectivity,” Wesgro said in a statement. “Tourism growth, expanding air links and private investment continue to support the region.”
New international routes are due to start in 2025 and 2026, including direct flights to São Paulo, Dar es Salaam and additional services to Dubai.
Top 10 African cities for 2025 (The Africa Report)
-
Cairo, Egypt
-
Kigali, Rwanda
-
Nairobi, Kenya
-
Cape Town, South Africa
-
Rabat, Morocco
-
Johannesburg, South Africa
-
Casablanca, Morocco
-
Lagos, Nigeria
-
Tangier, Morocco
-
Alexandria, Egypt
“Capital investment is increasingly moving toward cities with clear development strategies and strong state coordination,” said an urban development researcher based in Nairobi. “This is benefiting capitals like Cairo and Kigali, while long-standing city brands like Cape Town are facing stiffer competition.”
Ultimately, most analysts agree that Africa’s major cities are expanding rather than declining, with competition now driven by governance quality rather than size alone.
