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Revealed: Top 10 African Economies Where to Invest

 

A report titled Where to Invest in Africa 2021 by Rand Merchant Bank (RMB) has ranked Egypt as Africa’s top investment destination with Morocco following and South Africa in third place.

The report which assesses each African economy’s investment potential based on their operating environments also places Rwanda and Botswana, now in fourth and fifth position respectively as other high-scoring countries, with Kenya also making it to the list.

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We take a look at each of the 10 countries – as per their investment attractiveness;

1.      Egypt: 

While Egypt’s economy was hard hit by the pandemic, it was also one of the first to bounce back to a path of growth. This was thanks to the swift measures it introduced and the fact that it was on a stronger footing at the outbreak of COVID-19.

2.      Morocco: 

The economy of Morocco benefits from political stability. A special fund to combat COVID-19 was established in 2020, representing 2.7% of GDP. Two-thirds of the funds were to be provided by private sources and one-third by the government.

3.      South Africa: 

The southern-most country in Africa offers a strong manufacturing and retail base that supports southern African regional economies with goods and services.

4.      Rwanda: 

Rwanda continues to benefit from the efforts it has made to improve its operating environment. Furthermore, as part of the National Strategy for Transformation (NST), various investments should support the construction and energy sectors over the next few years.

5.      Botswana: 

The country has high foreign exchange reserves that have enabled it to weather the pandemic-induced economic storm better than most. The Pula Fund – a sovereign fund created in 1994 that finances a large part of the budget deficit – has meant fiscal dependency on a debt has been low.

6.      Ghana: 

Ghana entered the current crisis on a relatively stronger footing than its African peers. Structurally, its economy has seen major shifts over the past few years, positioning it for significant growth going forward. This is supported not only by primary-sector industries like oil and gold but also accelerated development in the tertiary sector.

7.      Mauritius: 

Aided by an extremely favorable tax regime, its financial sector will remain one of the main drivers of Mauritius’ economy into the future, notably through cross-border investment activities and banking services.

8.      Côte d’Ivoire: 

A rise in private investment should continue to fuel construction, agri-industry, and services (trade, transport, and ICT, in particular). Private investment will benefit from the impetus provided by public investment under the 2016–20 National Development Plan.

9.      Kenya: 

The Kenyan government’s efforts to ensure implementation of the ‘Big Four’ plan focused on industrialization, universal health coverage, food security, and affordable housing will invariably lead to fast economic growth.

10. Tanzania:

Tanzania has been on a rapid path of development over the past few years. This progress can be attributed to consistent public investment from the government in key secondary and tertiary sectors, ranging from the energy sector to advancements in the telecommunications and finance sectors.


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