Sep 18, 2012
SA still top African investment destination, but gap closing fastBack
Africa|Environment|Ghana|Merchant Bank|Africa|Angola|Comoros|Djibouti|Egypt|Eritrea|Ethiopia|Ghana|Guinea-Bissau|Kenya|Libya|Morocco|Nigeria|Rwanda|South Africa|Tanzania|Tunisia|Uganda|Gross Domestic Product|Power|Central Africa|West Africa
© Reuse this
In its second edition of ‘Where to Invest in Africa’, RMB noted that South Africa scored 5.84, followed closely by Egypt and Nigeria, with scores of 5.52 and 5.50 respectively.
The report, which, for the first time, included North African countries, measured an African country’s market size, as measured by gross domestic product (GDP) at purchasing power parity; the market growth rate, as reflected in the International Monetary Fund’s forecasts of real GDP growth; and an operating environment index, which looks at economic freedom, corruption, efficiency and business friendliness.
Ghana and Tunisia also ranked in the top five, achieving scores of 5.42 and 5.41 respectively, while Morocco ranked in sixth place with a score of 5.35, followed by Libya, which ranked 18 in the prior year, with 5.29.
Ethiopia, Kenya and Tanzania, scoring 5.07, 4.99 and 4.98 each, completed the top-ten list of investment destinations in Africa.
Kenya, Tanzania, Uganda and Rwanda were found to be the most attractive East African countries, while Tunisia and Morocco were the most notable North African economies, RMB said in its report.
“The North African economies, which entered the rankings this year, take many of the top positions. Even with the political problems surrounding the Arab spring and the resulting decline in their operating index, they remain relatively attractive markets,” said RMB.
However, RMB warned that, while Africa was still a desirable investment destination, Africa would need to fast-track its progress if it was going to compete with other rapidly growing emerging markets.
The report pointed out that West and Central Africa rated poorly, but Cote d’Ivoire recently entered the growth race after easing of political tensions.
Sub-Saharan country Angola remained a tough place to do business, despite its rapid growth and its position as the third-largest economy in the region.
Djibouti, São Tomé and Príncipe, Eritrea, Guinea-Bissau and Comoros were the lowest-ranking countries in Africa.
Edited by: Mariaan Webb© Reuse this Comment Guidelines (150 word limit)
Creamer Media Senior Researcher and Deputy Editor Online
Other Economy News
Recent Research Reports
Liquid Fuels 2015: A review of South Africa's liquid fuels sector (PDF Report)
Creamer Media’s Liquid Fuels 2015 Report examines these issues in the context of South Africa’s business environment; oil and gas exploration; fuel pricing; the development of the country’s biofuels industry; the logistics of transporting liquid fuels; and...
Road and Rail 2015: A review of South Africa's road and rail sectors (PDF Report)
Creamer Media’s Road and Rail 2015 report examines South Africa’s road and rail transport system, with particular focus on the size and state of the country’s road and rail infrastructure and network, the funding and maintenance of these respective networks, and...
Defence 2015: A review of South Africa's defence sector (PDF Report)
Creamer Media’s Coal 2015 report examines South Africa’s coal industry with regards to the business environment, the key participants in the sector, local demand, export sales and coal logistics, projects being undertaken by the large and smaller participants in the...
Real Economy Year Book 2015 (PDF Report)
There are very few beacons of hope on South Africa’s economic horizon. Economic growth is weak, unemployment is rising, electricity supply is insufficient to meet demand and/or spur growth, with poor prospects for many of the commodities mined and exported. However,...
Real Economy Insight: Automotive 2015 (PDF Report)
Creamer Media’s Real Economy Year Book comprises separate reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, gold, iron-ore and platinum sectors.
Real Economy Insight: Water 2015 (PDF Report)
Creamer Media’s Real Economy Year Book has been divided into individual reports under the banner Real Economy Insight and investigates key developments in the automotive, construction, electricity, road and rail, steel, water, coal, gold, iron-ore and platinum sectors.
This Week's Magazine
Energy analyst and EE Publishers MD Chris Yelland warned recently against excessive optimism regarding timescales for the proposed construction of new nuclear power plants (NPPs) in South Africa. He was speaking at a Nuclear Roundtable in Johannesburg. “I think we...
Malawi’s Lilongwe Water Board (LWB) is inviting eligible bidders to prequalify for the board’s efficiency improvement works, which will be implemented as part of the E24-million Lilongwe Water Resources Efficiency Programme. LWB CEO Alfonso Chikuni explains that...
CROATIA, AN EU MEMBER BUT NOT A TDCA MEMBER On July 1, 2013, Croatia officially became the twenty-eighth member of the European Union (EU). Despite Croatia’s accession into the EU, it is yet to become party to the Trade, Development and Cooperation Agreement (TDCA)...
The Council for Scientific and Industrial Research (CSIR) has announced that its new Inundu airborne electronics testing, evaluation and training pod had made its first test flight on September 10. The successful flight was undertaken from Lanseria International...
The Development Bank of Southern Africa (DBSA) – which disbursed a record R13-billion during 2015, from R12.7-billion in the prior year – remained optimistic that it could ramp-up loan disbursements to R25-billion a year by 2018 as it sought to give greater emphasis...