NAIROBI, KENYA: Kenya has been ranked the ninth most attractive destination for investments in Africa.
According to the latest Africa Investment Index 2018 (AII) by Quantum Global’s, Morocco is the most attractive economy for investments flowing into the African continent.
According to the AII, Morocco ranks first on the index based on its increasing solid economic growth, strategic geographic positioning, increased foreign direct investment, external debt levels, social capital factors and overall favourable business environment.
“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,” said Prof Mthuli Ncube, Managing Director, Quantum Global Research.
He added that Morocco has been consistent in attracting an inward flow of foreign capital, specifically in banking, tourism and energy sectors.
He further noted according to recent data by the Moroccan Exchange Control, Morocco attracted nearly Sh200 billion ($2.57 b) of foreign direct investment (FDI) in 2017, up from 12 per cent compared to 2016.
“The country is being recognised as one of the best emerging markets for overseas investment. International investors are looking at wide range of sectors for investments including in areas such as energy, infrastructure, tourism, and ICT amongst others,” Ncube said.
According to AII, the top five African investment destinations attracted an overall FDI of $12.8 bn in 2016.
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Cote d'Ivoire ranks fifth 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 third position in the second edition. Botswana, previously ranked as Africa’s top investment destination in the first edition, ranks fourth scoring well in risk factors as well as the business environment.
“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,” Ncube said.
He noted that 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.
