South Africa dropped five places to 12th in a ranking of emerging market investment destinations, reflecting weakening confidence among foreign investors.

Contraction in the country’s mining sector propelled the drop, according to the latest Kearney Index, after the industry experienced its first production decline in nine months as of November 2025.

“Domestic political uncertainty, infrastructure issues, increasing operational costs, and global trade tensions have all converged to impact demand for South African mineral exports,” it noted. The US topped the overall index for the 14th year in a row, while China, the UAE, and Saudi Arabia led the emerging market ranking for the third consecutive year.