This Is The Most Attractive Country For Investment In Africa For The Second Time In A Row
Are you looking for the best country for investment in Africa? Look no further because the Rand Merchant Bank (RMB) in South Africa has released a new study report. It shows exactly what you should be thinking about for 2019. However, the study shows that the most attractive country for investment in Africa is not in the south of the continent.
According to this report by RMB, Where to Invest in Africa 2019, the business and investment environments in the continent have improved since 2017. However, the report singles out a few hurdles that continue to hinder more accelerated development in Africa.
These issues include frail governance, reduced access to financing services, problems of infrastructure, rampant corruption in some countries as well as political unrest in some places. But generally, Africa, according to the report, has made important milestones that seek to attract and retain both local and foreign investments in the continent.
Investment Attractiveness Index for Most Attractive Investment Destination
The RMB uses an appropriate Investment Attractiveness index in order to make an assessment and rank the country. The index takes a look at the operating circumstances and economic environments of a country to gauge its potential to attract and retain local, international, and foreign investments. And Viola! Just like that and for the second year in a row, Egypt is the most attractive investment destination in Africa for 2019.
As expected, Egypt got a run for its money from the usual archrivals in the continent. Coming in the second position from Cairo all the way down to Cape Town, was South Africa. But following closely in the third position was Morocco, while Ethiopia and Kenya came in that order to complete the list of the top five most attractive investment destinations in Africa.
Why Is Egypt the Most Attractive Country of Investment in Africa?
The RMB report associates Egypt’s top rank in Africa with very important milestones. In order to have Egypt as the best, the report singles out the following reasons;
- A diversified economic environment.
- Escalating consumer market,
- Growing availability of hard currency.
- Stability in exchange rates.
- Stable improvement in business and investment environments, predominantly in investment-related legal reforms.
Additionally, Egypt is the largest beneficiary of direct foreign investment in Africa. It also has the largest consumer market not only in North Africa, but also in the Middle East.
“Egypt’s economic gain keeps on dominating that of South Africa,” the report says “as South Africa’s growth projections and the size of its economy are lower than those of Egypt and this weighed down its investment ranking.”
Top Ten Countries for Investment in Africa
In addition to the top five most attractive investment destinations in the continent, other usual contenders in African development were named. In a consecutive order from fifth to ten positions, the countries are as follows;
- Egypt
- South Africa
- Morocco
- Ethiopia
- Kenya
- Rwanda
- Tanzania
- Nigeria
- Ghana
- Ivory Coast
Countries with the Easiest Business and Investment Environments
The country that has the easiest business environment is Mauritius. This is followed by Rwanda while Botswana comes in third. In order to complete the best five countries where doing business is the easiest, the list includes South Africa and Seychelles in that order.
Egypt, Nigeria, and South Africa are 2018’s three most dominant countries in Africa in terms of GDP. The combined market in these three countries makes up almost half of the approximated $7 trillion markets in Africa. In order to maintain this investment attractiveness, Africa expects to improve individual business operating environments.
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