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Botswana is the most attractive economy for investments flowing into the African continent, according to the latest Africa Investment Index 2016 by Quantum Global’s independent research arm, Quantum Global Research Lab.
According to the Index, Botswana scores highly based on a range of factors that include improved credit rating, current account ratio, import cover and ease of doing business.
Commenting on the Index, Prof Mthuli Ncube, Head of Quantum Global Research Lab stated;
“Despite considerable external challenges and the fall in oil prices, many of the African nations are demonstrating an increased willingness to achieve sustainable growth by diversifying their economies and introducing favourable policies to attract inward investments. Botswana is a case in example – its strategic location, skilled workforce and a politically stable environment have attracted the attention of international investors leading to a significant influx of FDI.”
The report further states the top five African investment destinations attracted an overall FDI of $13.6bn. Morocco was ranked second on the Index based on its increasing solid economic growth, strategic geographic positioning, increased foreign direct investment, import cover ratio, and an overall favourable business environment.
Egypt came third due to an increased foreign direct investment, real interest rates, and a growing urban population. South Africa at fourth position scored well on the GDP growth factor, ease of doing business and its significant population. Zambia came fifth on the list due to its significant domestic investment and access money supply.
Mthuli further said;
“With a population of over one billion people and rapidly growing middle class, Africa clearly offers significant opportunities to invest in the continent’s non-commodities sectors such as financial services, construction and manufacturing amongst others. However, structural reforms and a greater private sector involvement are crucial to unlocking Africa`s true potential.”
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Source: APO on behalf of Quantum Global Group