Top 10 countries to invest in Africa 2020 an annual report released by Johannesburg –based Rand Merchant Bank Ltd (RMB)
1. Egypt
Egypt has an enormous market and a sophisticated business sector, which makes it the most attractive investment destination in Africa, compared to other countries.
Egypt has improved the business environment, which is facilitated through government programs and a progressive increase in investment from the private sector. This has enhanced its economic growth and assisted in repositioning the country on the global investment map.
2. Morocco
Since the Arab Spring, the country’s greatly enhanced operating environment has served the country well with an expected growth rate of 4% over the medium term.
Morocco joining the Economic Community of West African States (ECOWAS) and rejoining African Union has enhanced its investment appeal.
3. South Africa
South Africa remains a hotspot for portfolio investment despite its depressed levels of growth and lack of structural reforms. South Africa’s level of financial inclusion and financial markets are still cut above the rest as many countries face liquidity constraints.
4. Kenya
Kenya’s favourable weather and political reconciliation after 2017 disputed elections, has propelled the country to one spot higher from the last report with the country’s expected growth rate at above 5%.
Kenya’s economy benefits from a sustained expansion in consumer demand, urbanization, East Africa Community (EAC) integration and investments in infrastructure which includes an oil pipeline, ports, power generation and railways.
5. Rwanda
The country has the second-best business environment in Africa. Rwanda has more than doubled its business environment in less than a decade according to the World Bank’s operating environment scoring.
Increase in Foreign Domestic Investments (FDI) and the government’s heavy investment in its domestic industries has pushed Rwanda into being one of the fastest-growing economies in the region.
6. Ghana
Ghana’s growth outlook is strong and concentrated around the oil and gas sector. Pro-business reforms and improvement in a power supply is going to promote the Non-oil growth in the country.
Despite the deterioration in its operating environment ranking, Ghana remains one of the easier business environment in the continent.
7. Côte d’Ivoire
A stable political environment and the government pro-business reforms support Côte d’Ivoire’s strong growth rates. It has large infrastructure especially in transport, which is financed by foreign investment, the government and aid flow. This has supported the country’s strong position.
8. Nigeria
Nigeria has improved macroeconomics, which is supported by recovering oil prices and production. It has the largest economy in Africa in nominal terms and the largest population, therefore, its domestic demand continues to rise. Nigeria is attracting strong FDI due to its favourable demographics and resources. Commodity prices have recovered since its liquidity subsided in 2017.
9. Ethiopia
It has the fastest growing economy on the continent. The country has a population of almost 100 million people therefore, there is a significant demand for goods and services. Ethiopia’s prohibition of foreign ownership in key sectors is still a constraint for investment though it is slowly changing.
10. Tunisia
Tunisia has a favourable operating environment and a reasonable market size making it appear in the top ten list. The government has implemented a new simplified investment code, which is encouraging foreign investment in the country and attracted multinational manufacturers.
