Rwanda Dethrones India as Top Investment Spot
Rwanda has unseated India to take the top spot in the 2026 Baseline Profitability Index, a measure of a country's attractiveness for foreign direct investment. The shift highlights changing dynamics in global capital flows and emerging market appeal.
The Baseline Profitability Index (BPI) evaluates the attractiveness of a country for foreign direct investment by focusing on the share of proceeds that can be returned to an investor's home country. The index uses a five-year time horizon and considers factors such as security, property rights, corruption, and exchange rates. Rwanda's ascent to the top spot with a BPI score of 1.27 reflects its sustained economic growth and pro-business reforms. The nation's economy has been among the fastest-growing in sub-Saharan Africa, with GDP growth of 8.9% in 2024 and a projection of 7.5% for 2026. This growth is largely driven by strong performance in the services and industrial sectors. India, now in second place with a score of 1.26, has also experienced robust economic expansion, with growth estimated between 7.5% and 7.8% for the 2025-2026 fiscal year. The country's outlook is supported by strong domestic demand, services-led exports, and public investment. However, India has faced some economic headwinds, including volatile capital flows and uncertainties related to US tariff policies. These external shocks, combined with domestic challenges, have been a point of concern for financing the country's current account deficit, especially if foreign investment outflows continue.
