Sep 18, 2012
SA still top African investment destination, but gap closing fastBack
Africa|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
Updated 14 minutes ago State-owned freight logistics group Transnet has awarded integrated solutions provider Tenova Mining & Minerals South Africa a contract for the supply of three reverse-pulse bagfilters. Two of the filters would be installed on multiproduct rail tipplers and one on a...
Updated 17 minutes ago Liquidators have now been appointed to wrap up the liquidation of financially distressed civil engineering group Protech Khuthele Holdings. Theodor Wilhelm van den Heever, Mark Abraham Christian, Irene Susan Ponnen and Mohamed Ismail Patel have been appointed to...
Updated 49 minutes ago Aluminium products supplier Hulamin, which on Monday reported a 42% year-on-year lift in earnings for the first half of 2014, has revealed that it is preparing an application for reciprocal import tariff protection, which it plans to lodge shortly with the...
Recent Research Reports
Real Economy Year Book 2014 (PDF Report)
This edition drills down into the performance and outlook for a variety of sectors, including automotive, construction, electricity, transport, steel, water, coal, gold, iron-ore and platinum.
Real Economy Insight: Automotive 2014 (PDF Report)
This four-page brief covers key developments in the automotive industry over the past 12 months, including an overview of South Africa’s automotive market, trade figures, production and the policies influencing the sector.
Real Economy Insight: Construction 2014 (PDF Report)
This five-page brief covers key developments in the construction industry over the past 12 months. It provides an overview of the sector and includes details of employment in the sector, infrastructure and municipal spending, as well as insight into companies’...
Real Economy Insight: Electricity 2014 (PDF Report)
This five-page brief covers key developments in the electricity industry over the past 12 months, including details of State-owned power utility Eskom’s generation activities, funding and tariffs, independent power producers and prospects for the sector.
Real Economy Insight: Road and Rail 2014 (PDF Report)
This six-page brief covers key developments in the road and rail industries over the past 12 months, including details of South Africa’s road and rail network and prospects for both sectors.
Real Economy Insight: Steel 2014 (PDF Report)
This four-page brief covers key developments in the steel industry over the past 12 months. It provides an overview of the global and South African steel and stainless steel markets, South Africa’s major steel producers and events that have shaped these markets.
This Week's Magazine
Multinational semiconductor chipmaker corporation Intel announced its national campaign to further acquire partners to drive its She Will Connect programme, an initiative that aims to expand digital literacy skills to young women in developing countries, further into...
South Africa's MeerKAT radio telescope array programme should get back on schedule within a few months. This assurance has been given by SKA South Africa (SKA SA) associate director: science and technology Prof Justin Jonas. Early last month, Science and Technology...
The Passenger Rail Agency of South Africa’s (PRASA’s) Metrorail service will remain a subsidised service following its current multibillion-rand rolling stock, station, depot and signalling upgrade programme. PRASA group CEO Lucky Montana has allayed fears that...
The uncertainties around the remediation of affected areas as addressed in the Contaminated Land Provisions in the National Environmental Management: Waste Act No 59 of 2008 will possibly spark litigation and disputes between landowners and businesses, contractors...
South Africa is currently the largest component of the African Development Bank’s (AfDB’s) active portfolio in Southern Africa, comprising 62.5% of the bank’s $7.9-billion exposure to the 12-country region – the second largest beneficiary is Mauritius, which...