Africa's Most Significant Political Risks for Investors in the Year 2025

In 2025, Africa is poised for significant changes as several political events unfold, shaping the continent's economic growth and foreign partnerships. Major elections and regional transitions are on the horizon, with investors keeping a keen eye on developments.

Three countries, Libya, South Sudan, and Ethiopia, are navigating transitions that could bring stability and renewed growth, despite election delays and localized tensions. These shifts in international partnerships are influencing investment patterns and procurement decisions across Africa.

One of the most notable political developments is the continuation of Paul Biya's presidency in Cameroon. Biya, who has been in power since 1982, was cleared to run for and is likely to win another term in the October 2025 presidential election.

Meanwhile, Nigeria and Ethiopia have taken bold steps towards economic reform by liberalizing their currencies. Although this move has led to short-term inflation, it signals a shift towards more open and accountable monetary systems. These currency reforms are paving the way for more predictable investment environments over the medium term.

Africa's geopolitical alignment is also evolving. Countries like Niger and Ethiopia are diversifying their international partnerships to include Russia, Gulf states, and China. This diversification could lead to new opportunities and challenges for the continent.

Several African countries are implementing economic reforms tied to IMF agreements, including floating exchange rates, subsidy cuts, and legal overhauls. President Bassirou Diomaye Faye of Senegal is at the forefront of these efforts, implementing economic reforms, anti-corruption measures, and regional diplomacy. These actions are being closely watched by investors, with the new administration in Senegal expected to have a significant impact on emerging sectors and improve transparency.

Ongoing diplomatic efforts and peace agreements in post-conflict states like Libya, South Sudan, and Ethiopia offer a chance for long-term political normalization, which would benefit infrastructure, energy, and agricultural sectors. As Africa moves forward in 2025, these political transitions and economic reforms promise a year of opportunities and challenges for the continent and its investors.