Investment Destination in Africa an independent research arm has named Botswana, as the most attractive destination.
According to Investment Destination in Africa’s latest Investment Index Botswana scores highly based on a range of factors that include improved credit rating, current account ratio, import covers and eases of doing business
The research says Botswana is the most attractive economy for investments flowing into the African continent.
Prof Mthuli Ncube , Head of Quantum Global Research Lab commenting on the Index said 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,” Prof Ncube said.
According to the report, 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 was ranked third due to an increased foreign direct investment and real interest rates, and a growing urban population.
The fourth country on the list, South Africa, scored well on the growth factor of GDP, ease of doing business in the country and significant population.
Whilst Zambia was the fifth country on the list due to its significant domestic investment and access money supply.
“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,” Prof Ncube said.
He said structural reforms and greater private sector involvement are crucial to unlocking Africa’s true potential.