Nigeria On Top 10 Countries Of Where To Invest in Africa in 2019

Top 10 Investment Attractiveness-Ranked Countries:

1. Egypt is Africa’s largest economy GDP-wise, boasting the biggest consumer market in the Middle East and North Africa, its diversified economy receiving large FDIs.
2. South Africa is also still an FDI hot spot, with the country's currency and capital markets a cut above the rest of Africa’s, according to Fauconnier. But she warns that subdued economic growth and this year’s upcoming elections have created political-party divisions, which hamper policymaking.
3. Morocco is Africa's fifth-largest market, which, with its medium-term growth-rate expectation at 4%, boasts an enhanced operating environment and investment appeal.
4. Ethiopia is set to be the fastest-growing economy in Africa, averaging 8.2% for the next six years – a slight normalisation from the 10% average experienced over the past decade. The robust momentum is supported by improved macroeconomic policies and higher government investment in local industries and human capital.
5. Kenya delivered a diverse economy and sustained expansion in consumer demand, urbanisation, EAC integration, structural reforms and infrastructure development, which include an oil pipeline, railways, ports and power generation.
6. Rwanda is another fast-growing economy, boasting the second-best business environment.  Although a small market, the government is investing heavily into its domestic industries, with a significant increase of FDI recorded over the past decade.
7. Tanzania is expected to grow at 6.5% over the next five years. The economy is expected to overtake Kenya's, supported by its resource based manufacturing, tax incentives and development of special economic zones.
8. Nigeria jumped back into the Top 10 due to improved macroeconomics, supported by recovering oil prices and production and favourable demographics attracting FDI.
9. Ghana has strong growth rates concentrated around the oil and gas sector, while the non-oil sector growth is supported by pro-business reforms.
10. Côte d'Ivoire also has strong growth rates, supported by large infrastructure investment, particularly in transport and energy.

Additional information:

In assessing Africa’s most attractive investment environments, RMB considered two important conditions for viable investment: economic activity and operating environment.
Eleven countries are forecast to grow above 6%, Ethiopia set to be Africa’s fastest-growing economy. Certain sectors provide opportunities for long-term growth. Resources will continue be key in attracting funds – particularly in the hydrocarbon, base and precious metals spheres. The all-important demographic dividend – especially the strong growth in population, urbanisation and GDP per capita – also provides growth opportunities.
RMB also identified other growth opportunities. From a fiscal perspective, Africa has low levels of revenue collection. The IMF estimates that SSA could potentially collect an extra 3%-5% of GDP in tax revenues by improving collection systems and broadening the tax net. Says Fauconnier: “Private-sector investment has also been lacking. This could change through more business-environment reforms, increased infrastructure and financial-market development and trade openness.”
The report found no real improvements in operating environments across Africa. Although findings reveal a slight improvement to the overall operating environment, access to financing, corruption, weak governance and inadequate efficient infrastructure remain problematic factors for doing business in Africa. The top five performers in terms of operating environments were Mauritius, Rwanda, Botswana, South Africa and the Seychelles. Mauritius is now in its 11th year of being the easiest business environment in Africa, and it keeps on improving.

Please follow this link to view the full report https://www.rmb.co.za/landing/where-to-invest-in-africa.