Photo Credit: Photo by Temitayo Olatoke on Unsplash
These 10 African Countries Deserve Your Dollars In 2020
Rand Merchant Bank has released its annual “Where to Invest in Africa” report where analysts identified the top 10 countries and sectors that they believe are key to unlocking the continent’s growth potential.
According to co-author Celeste Fauconnier and contributor Chris Mabanga, manufacturing is set to take center stage as the continent, with its advantage of an abundance of natural resources, is focusing on turning its raw materials into manufactured goods to boost exports and reduce reliance on imports.
Here’s a list of the top 10 countries:
Why? According to the study, Egypt is the most attractive investment destination in Africa. The improvement in Egypt’s business environment, facilitated through government programs, combined with the progressive increase in investment from the private sector has enhanced economic growth and assisted in repositioning Egypt on the global investment map.
Africa’s fifth-largest market has an expected growth rate of 4% over the next few years, according to the study. Its reintegration into the African Union and accession to the Economic Community of West African States (ECOWAS) have enhanced its investment appeal.
3. South Africa
South Africa has slipped another place in this year’s rankings, stymied by depressed levels of growth and a lack of structural reform. Yet, it remains Africa’s hotspot for portfolio investment.
Kenya’s GDP is expected to grow by more than above 5%, helped by favorable weather and political reconciliation after 2017’s disputed elections, according to the study. Kenya has a diverse economy and consumer demand is expanding.
Rwanda is one of Africa’s five fastest-growing economies and ranked as the second-best business environment on the continent. The country has more than doubled the efficiency of its business environment in less than a decade.
There’s a strong growth outlook concentrated around the oil and gas sector, non-oil growth is picking up. Political stability underpinned by strong democracy has helped Ghana succeed as an investment power and it remains one of the easier business environments in Africa.
7. Côte d’Ivoire
Strong growth rates supported by the government’s pro-business reforms and a relatively stable political context is what makes the Ivory Coast a great place for investment.
Nigeria has jumped back into the Top 10 due to improved macroeconomics, supported by recovering oil prices and production. With the second-largest market in Africa, resources and favorable demographics are attracting a large flow of foreign direct investments.
With almost 100 million people, the demand for goods and services rising significantly in Africa’s sixth-largest and fastest-growing.
Tunisia re-enters within the top ten supported by reasonable market size and favorable operating environment. The government’s encouragement of foreign investment, through its new simplified investment code, has made the country increasingly attractive to multinational manufacturers.