African countries aim to attract investors from all over the world for positive economic and social impact.
South African diversified financial services holding company Rand Merchant Bank produces an annual report accessing the economic outlook and investment potential of different parts of Africa.
The report considers aspects such as diversification, structural reforms put in place by governments and private sector participation in increasing economic opportunities.
With a population of more than 1 billion people and a growing middle class, Africa offers opportunities to invest in the continent’s non-commodities sectors such as financial services, construction, and manufacturing, amongst others.
These are the 10 best African countries to invest in during 2019.
10. Ivory Coast
The francophone powerhouse has been on the radar of many international investors in recent years. The country’s fast-growing economy is agriculture-based, with 75 percent of Ivorian land fertile for agriculture. In addition to exporting agricultural produce, the country has been focusing on growing their tourism industry, according to the OxfordBusinessGroup.
Another of the West African nations on this list is Ghana, with a conducive social, political and economic environment that is attractive to investors. Ghana is also one of the more open economies to foreign equity ownership in sub-Saharan Africa, and many of its major sectors allow complete foreign capital participation, according to Export.org.
Many businesses looking to begin operations in the West African region consider Nigeria as an ideal starting point thanks to the country’s ready market for any product with its robust population numbering around 191 million people, and an enabling business environment that constantly attracts new and established businesses, according to the Rand Merchant Bank report.
Tanzania has one of the fastest growing economies in Africa, and is a shining light among growing economies in the thriving East African region. Those looking at the country have significant investment opportunities to do business within one of Tanzania’s three most important sectors, which are agriculture, mining and tourism, according to the Tanzanian Embassy.
Renowned throughout Africa as a pioneering nation with regards to tech, Rwanda is also one of the top investment destinations in Africa for the year ahead. A growing GDP is a plus for the East African country that places high in terms of ease of doing business globally, coming in 29th out of 190 countries in that regard, according to NewTimes.
Kenya has for some time been one of the most attractive African countries for global investors, and it continues to maintain its place among the best African investment opportunities. A growing middle class and an increasing appetite for high value and good service counts in favor of Kenya, which is the biggest and most advanced economy in the East African region, according to VenturesAfrica.
Ethiopian Prime Minister Abiy Ahmed has been a revelation for the East African nation, boosting the country’s economy and ties with neighbours within the region. His leadership and economic reforms have contributed to Ethiopia placing fourth on this list as an attractive African investment destination, according to the report.
Often placing within the top three in these types of lists, Morocco is the third most attractive African country for global investors, according to the
report. The country’s increasing solid economic growth, strategic geographic positioning, increased foreign direct investment, import cover ratio, and an overall positive business environment ensures that it stays on the podium this time around.
2. South Africa
A mainstay at the top of similar lists, South Africa places second on this list of attractive African investment opportunities for 2019. South Africa is one of the most sophisticated and diverse emerging markets globally. The country is a key investment location for many international investors for the market opportunities that it provides, as well as the fact that it is a gateway to the rest of the continent for businesses that are looking to enter the African market, according to HowwemadeitinAfrica.
Egypt tops the other African countries in this particular list this year, according to the report. The North African nation can thank increasing foreign direct investment, a great business and startup environment and a growing urban population for their impressive place in the list. With 90 million people in the country, 50 percent is estimated to be under the age of 30 and tech savvy, contributing to Egypt’s reputation as one of the fastest growing entrepreneurial hubs in the world, according to VenturesAfrica.