The best countries to invest in Africa

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Published 3 weeks ago

You’re looking to go on a new business venture abroad, but you cannot quite seem to decide on where would be appropriate? If you’re ready to invest, but you are not quite sure where: have you thought about the African continent? Africa is booming with activity right now, and, experts say, it is set to continue growing. Here are the countries you should consider according to the South-African investment bank, Rand Merchant Bank (RMB), Top 10. The parameters established are market activity and operating environment.

Egypt

Egypt
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For the second year in a row, Egypt ranks first in RMB listing of the best countries to invest in Africa. It is Egypt’s activity score that has made the difference- scoring 8.0 points according to RMB’s study, making Egypt the most active economic market in Africa. And it is one of the most diverse too. Agriculture, the industry- including automotive manufacturing, steel manufacturing, textile production and the construction industry, the services sector and the tourism industry all contribute in near equal parts to the country’s Gross Domestic Product (GDP). It’s large population has also prompted Egypt to the top of the list. Egypt scores low, however, on operating environment- due, probably, to its heavy bureaucracy that the country is addressing.

South Africa

South Africa
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Dethroned by Egypt, South Africa ranks second for the second year in a row- mainly, according to RMB, due to it’s “sluggish GDP growth rates and mounting concerns over issues of institutional strength and governance”. South Africa does, however, have one of the best operating environments of the continent. Key sectors of South Africa’s economy include manufacturing, mining, agriculture, communications and tourism. The country seems to be moving, however, towards a more knowledge-based economy focusing more on technology and financial services.

Morocco

Morocco
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Morocco ranks, once again, 3rd in RMB’s list. The country is moving steadily towards bettering it’s business practices, and its economy is growing steadily. Its key economic sectors include agriculture, tourism, aerospace and textiles. However, the government is investing more and more in its port, transportation and industrial infrastructure which should further increase Morocco’s investment attractiveness.

Ethiopia

Ethiopia
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If it were not for its poor operating environment- due to the socio-political instability in the country-, Ethiopia could rank much higher on the investment attractiveness gauge. The country has one of the busiest markets of the African continent. The country’s economic rates, according to RMB, keeps growing rapidly and steadily. The main economic sectors of Ethiopia are agriculture, mining, energy, manufacturing and transport. Ethiopia is the largest economy of the East African region.

Ghana

Ghana
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It has gone down one place since last year’s ranking. This does not mean Ghana is any less worthy of consideration, however. Economic activity in Ghana, although it had registered a slight fall is back on track and increasing steadily. Agriculture, the industry including mining, manufacturing, energy production and construction and services make up most of Ghana’s GDP. The country does slightly better than Ethiopia regarding the operating environment.

Kenya

Kenya
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“Diverse economic structure, pro-market policies and brisk growth in consumer spending”. This is what, RMB says, makes Kenya attractive to investors. Indeed, the country relies on agriculture, mining, manufacturing, tourism and a little on financial services which makes the investment scope relatively large. Kenya’s market is free and not determined by a central authority, therefore ensuring economic freedom.

Tanzania

Tanzania
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Tanzania went from the 9th to the 7th place this year. An improvement mainly due to it’s operating environment that is constantly getting better, according to RMB. Tanzania’s authorities are striving to make it easier to do business in the country. The most important sectors of the country’s economy are agriculture, mining and tourism.

Rwanda

Rwanda
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“One of the fastest-reforming economies in the world”. This is how RMB describes Rwanda. Indeed, the country seems to be constantly striving to improve it’s business practices and environment. The market activity in Rwanda is also continuously improving with diverse economic sectors. If Rwanda has always been heavily dependent on agriculture, its efforts to propel the financial services sector, construction and tourism have not gone unnoticed.

Tunisia

Tunisia
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A newcomer is RMB’s top 10 is Tunisia at spot number 9, not too far behind Rwanda at that. The country’s market activity is growing steadily and the government is making efforts to better business practices. Investment opportunities in Tunisia are wide- the main tenets of it’s economy being petroleum, mining, agriculture, industry and tourism.

Ivory coast

Ivory coast
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The market activity in Ivory Coast is booming. Between the production of oil and gas, mining activities, previous minerals, textile and the manufacturing sector… there is no shortage of investment opportunity in Ivory Coast. The country is also steadily improving it’s business practices and overall operating environment.