Egypt has maintained the top spot in Africa in the latest RMB “Where to Invest in Africa” Report .
Findings from the eighth edition shows that efficient infrastructure is crucial in uncovering opportunities and unlocking Africa’s growth potential.
In assessing the most attractive investment environments in Africa, RMB considered two important conditions for viable investment namely; economic activity and the operating environment.
While there were changes to this year’s Top 10 ranking, the top three countries from last year – Egypt, South Africa and Morocco, maintained their positions in terms of investment attractiveness.
Progress across Africa
The report says strides have been made to improve the investment and legal business environment.
It says “The availability of hard currency to service debt and the depreciation of the Egyptian pound since its flotation in 2016, however, remain some of its challenges.”
Despite the recent challenges in South Africa, the report suggests that the country is currently a hot spot for foreign direct investment.
The country’s President Cyril Ramaphosa’s effort to build a US$100 billion book of foreign and domestic investments project is on track.
The report says the country’s currency and capital markets remain a cut above the rest of the other African countries.
It’s analysis of individual African countries revealed that 11 African countries are expected to grow above 6%.
Ethiopia is set to be the fastest-growing economy in Africa, averaging 8.2% for the next six years.
The top five performers in terms of operating environment were Mauritius, Rwanda, Botswana, South Africa and the Seychelles.
Mauritius is now in its 11th year of being the easiest business environment in Africa.
Top 10 investment attractiveness-ranked countries:
| Country | Key Attractiveness Indicator | |
| 1. | Egypt | Retained the top spot as the largest African market in gross domestic product terms, boasting the largest consumer market in the Middle East and North Africa. |
| 2. | South Africa | Retained its second position as a hot spot for foreign direct investment. |
| 3. | Morocco | Morocco has a growth rate expectation of 4% over the medium term, its operating environment and investment appeal have been greatly enhanced since the “Arab Spring”. |
| 4. | Ethiopia | Ethiopia is set to be the fastest growing economy in Africa, averaging 8.2% for the next six years – a slight normalization from the 10% average experienced over the past decade. The robust momentum is supported by improved macroeconomic policies and higher government investment in local industries and human capital. |
| 5. | Kenya | Kenya delivered a diverse economy and sustained expansion in consumer demand, urbanization, EAC integration, structural reforms and infrastructural development, which include an oil pipeline, railways, ports and power generation. |
| 6. | Rwanda | Rwanda is another fast-growing economy, boasting the second-best business environment. Although a small market, the government is investing heavily into its domestic industries, with a significant increase of FDI recorded over the past decade. |
| 7. | Tanzania | Tanzania is expected to grow at 6.5% over the next five years. The economy is expected to overtake Kenya, supported by its resource based manufacturing, tax incentives and development of special economic zones. It battles, however, with a weak business environment. |
| 8. | Nigeria | Nigeria jumped back into the Top 10 due to to improved macroeconomics, supported by recovering oil prices and production and to favorable demographics attracting FDI. |
| 9. | Ghana | Ghana has strong growth rates concentrated around the oil and gas sector, while the non-oil sector growth is supported by pro-business reforms. |
| 10. | Côte d’Ivoire | Côte d’Ivoire has strong growth rates, supported by large infrastructural investment, particularly in transport and energy |
Source: Africafeeds.com
