The eighth edition of “Where to invest in Africa’’ of Rand Merchant Bank has rated Egypt as the most attractive country in Africa for investment.
The rating identified efficient infrastructure as essential to uncovering opportunities and unlocking Africa’s growth potential.
The co-authors of the publication and RMB Africa Analysts, Celeste Fauconnier and Neville Mandimika, focused on the need of efficient infrastructure.
According to the World Bank, the lack of efficient infrastructure trims up to 2.6 per cent off the African average per capita growth rate and places serious strain on human development.
Fauconnier said: “The African Development Bank’s (AfDB) most recent estimation of infrastructure needs is between US$130bn and US$170bn annually, but the continent’s available capital is insufficient to achieve this”.
She added that that the good news is that this shortfall represents an opportunity to businesses involved in the development or financing projects of infrastructure projects.
The top three on the list Egypt, South Africa and Morocco. Egypt kept their top spot ranking and the country is Africa’s market in GDP terms. It also boasts of the largest consumer market in the Middle East and North Africa.
South Africa also kept their second position and according to Fauconnier, it is currently a hot spot for FDI with the President Cyril Ramaphosa efforts to build a $100 billion book of foreign and domestic investments project on track.
Ranked in third place is Morocco which is Africa’s fifth largest market. The country has a growth rate expectation of 4 per cent over the medium term.
Source: Business Report