List of best African countries to invest in

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Africa has unlimited opportunities as it’s rich in natural resources such as arable land, water, oil, natural gas, minerals, forests and wildlife.

The continent is home to some of the fastest-growing economies in the world.

According to the World Economic Forum, Africa has a fast-growing youth population with urbanisation expected to drive over 50% of Africans to cities by 2050.

Nigeria has rich oil reserves making it an attractive investment destination. Photo: Getty Images.

The youthful population constitutes a formidable market.

List of best African countries to invest in according to Africa Business Insider.

  1. Nigeria

The West African country is the most populous country in the continent with over 216 million people.

In 2021, Nigeria’s Gross Domestic Product (GDP) stood at $514 billion (Sh and was ranked as the largest economy according to Statista.

Nigeria’s National Bureau of Statistics stated that the country’s GDP expanded by 4.03% in quarter three of 2021.

Nigeria has rich natural resources with its agriculture, natural gas, and crude petroleum accounting for 11% of GDP. Construction, industry, and main exports on the other hand contribute 16% to the GDP.

  1. Egypt

Data analytics website, Worldometers, estimates that Egypt has a population of 106.2 million people.

Egyptian pyramids. Tourism is big investment option there. Photo: Science Focus.

The northeast African country’s economy increased by 9.8% in the 2021-2022 financial year as reported by Reuters.

Egypt’s $394 billion (Sh 46.4 trillion) GDP is second to Nigeria’s.

The country’s investment options are in fossil fuels, agriculture, and tourism.

  1. South Africa

South Africa is the most developed country in Africa according to Trading Economics.

As of 2021, its GDP stood at $329.53 billion (Sh 38.8 trillion) and is ranked as the most industrialised economy.

The South African economy is projected to grow by 2% in 2022 and 2.1% in 2023 with lucrative investments in real estate, finance, communication and transport sectors.

  1. Algeria

Algeria’s economy is driven by oil and gas. Its renewable energy and tourism offer direct investment options.

According to the United Nations Conference on Trade and Development (UNCTAD), foreign direct investment in Algeria decreased to $ 1.1 billion (Sh 129.6 billion) in 2020 from $ 1.3 billion (Sh 153.2 billion) in 2019.

  1. Morocco

Morocco’s economy is determined by the law of supply and demand.

The North African country’s GDP is the fifth largest economy in Africa with a GDP of $124 billion (Sh 14.6 trillion).

Morocco’s investment areas are in agriculture and housing.

  1. Kenya

The 2022 Economic Survey report released by the Kenya National Bureau of Statistics (KNBS) indicated the East African country recorded a 7.5% economic growth in 2021.

The top three sectors which recorded the highest growth were education (214%), followed by accommodation and food services (52.5%) and financial and insurance activities (12.5%).

Agriculture drives the Kenyan economy. Photo: The Standard.

Other sectors that registered growth were wholesale and retail trade (7.9%), transport and storage (7.25%), and manufacturing (6.9%.

According to the Kenya Investment Authority, Kenya’s strong growth prospects are supported by an emerging middle class and an increasing appetite for high-value goods and services.

Its GDP is projected to grow to $107 billion (Sh 12.6 trillion) in 2022.

  1. Ethiopia

The Ethiopian economy is expected to grow by 8.7% in 2022.

Ethiopia is the second-largest flower exporter in Africa and among the biggest producer of coffee globally.

As of 2021, its GDP stood at $93.97 billion (Sh 11.07 trillion).

  1. Ghana

According to Bloomberg, Ghana is the second-largest economy in the West African region. Its economy is projected to grow by 5% in 2022.

The country’s economy relies on agriculture, forestry, and fishing which employ more than half of its 30 million population.

9. Angola

The Southern African nation boasts of rich oil and gas resources as well as arable land.

Angola is the second-largest oil producer in Africa. It’s a member of the Organisation of the Petroleum Exporting Countries (OPEC).

Sectors for investment include trade, transportation, storage, construction, and fisheries. Angola’s GDP is expected to surpass the $ 100 billion mark in 2022 up from $66.49 billion.

10. Ivory Coast

Ivory Coast is one of the best investment destinations for investors in the Economic Community of West African States (ECOWAS).

The sectors driving growth in the country are transport, construction, agriculture, and petroleum products.

READ: AfCFTA: Africa banking on transport sector to grow economy

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