Africa's Development

Inward investments make it the most alluring investment destination in Africa

Tanzania was the eighth country on the list.

Africa is diverse in its own way with each country possessing different degrees of capacity to host investment projects. Recently, Rwanda has been on the limelight etching its name as the best Sub-Saharan country as an investment hub, the third best in Africa. However, other states are not sleeping and the competition to lure bigger investors is still on.

According to the latest Africa Investment Index 2016 by Quantum Global’s independent research arm, Quantum Global Research Lab, the nation of Botswana has emerged as the most alluring economy for investments that are currently flooding the continent of Africa.

According to the Index, Botswana scores highly based on a range of factors that include improved credit rating, current account ratio, import cover and ease of doing business.

“Despite considerable external challenges and the fall in oil prices, many of the African nations are demonstrating an increased willingness to achieve sustainable growth by diversifying their economies and introducing favourable policies to attract inward investments. Botswana is a case in example – its strategic location, skilled workforce and a politically stable environment have attracted the attention of international investors leading to a significant influx of FDI,” Prof Mthuli Ncube, Head of Quantum Global Research Lab commented on the Index.

According to the report, the top five African investment destinations attracted an overall FDI of $13.6bn. Morocco was ranked second on the Index based on its increasing solid economic growth, strategic geographic positioning, increased foreign direct investment, import cover ratio, and an overall favourable business environment. Egypt was ranked third due to an increased foreign direct investment and real interest rates, and a growing urban population. The fourth country on the list, South Africa, scored well on the growth factor of GDP, ease of doing business in the country and significant population. Whilst Zambia was the fifth country on the list due to its significant domestic investment and access money supply. Tanzania was the eighth country on the list.

Mthuli further commented: “With a population of over one billion people and rapidly growing middle class, Africa clearly offers significant opportunities to invest in the continent’s non-commodities sectors such as financial services, construction, and manufacturing amongst others. However, structural reforms and greater private sector involvement are crucial to unlocking Africa’s true potential.”

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