According to the 2018 Africa Investment Index (AII) of Quantum Global’s independent research arm, Quantum Global Research Lab, North African countries dominated the attractive investment destinations on the continent, with Morocco ranking first in Africa.
The index was released on March 26 on the sidelines of the Africa CEO Forum in Abidjan, Côte d’Ivoire.It was compiled by measuring six major factors – growth, liquidity, risk, business environment, demography and social capital—to paint a picture of the investment attractiveness of countries in the medium term.“What has propelled Morocco to the top position of the All is mainly the size of its economy, its very favourable business climate and the management of macroeconomic risks that it has made its own.
Prof. Mthuli Ncube, Managing Director, Quantum Global Research Lab commented:
“In spite of the improvements to oil production and prices, African economies are turning their attention towards diversification to stimulate industrial development, and to attract investments in non-oil strategic sectors. Morocco has been consistent in attracting an inward flow of foreign capital, specifically in banking, tourism and energy sectors and through the development of industry.”
Top 10 and Bottom 10 countries:
According to AII, the top five African investment destinations attracted an overall FDI of $12.8 bn in 2016. Cote d’Ivoire ranks 5th while being the fastest growing economy in Africa and scores relatively well in liquidity and risk factors such as real interest rate, exchange rate risk and current account ratio. The improved risk profile, combined with strong liquidity, business environment, demographics and the social capital record has rendered Algeria a rise to the 3rd position in the second edition. Botswana, previously ranked as Africa’s top investment destination in the first edition, ranks 4th scoring well in risk factors as well as the business environment.
Prof. Ncube further commented: “Continued FDI inflows will continue to drive the much-needed capital to develop Africa’s primary sectors to meet the demands of the continent’s rapidly growing middle-class, and into manufacturing sectors to create more jobs, enhance economic growth and support structural transformation.”
In terms of improvements in the ranking over the last 3 years, countries such as Swaziland, Angola, Rwanda, Chad, Comoros, Seychelles, South Sudan and Sierra Leone registered strong upward movements as shown in AII three-year rolling rankings.