Rand Merchant Bank Ltd, a Johannesburg-based company has released its latest annual study dubbed “Where to Invest in Africa 2020”. The report accents the top 10 attractive investment destinations in Africa. In addition to the countries’ attractiveness to do business, the report names lack of infrastructure as the number one challenging factor in investing in Africa.
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. But here’s the good news: this shortfall represents an overwhelming opportunity for those businesses involved in the development or financing of infrastructure projects.
THE RANKING
RMB Global Markets research analyses 54 African economies according to their investment attractiveness.
The latest “Where to Invest in Africa” publication focuses on the traditional and alternative sectors driving African countries to reach ever-higher levels of economic growth.
Major indicators for the top ten economies are resources, manufacturing, real estate and construction, ICT, retail, banking and finance.
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Economic fundamentals, ease of doing business and the attractiveness of doing business enabled countries in the top 10 position to score better than other states.
In the top 10 is a blend of West, East and Northern African countries with South Africa emerging as the only southern country.
Meanwhile, Ghana remains one of the top 10 attractive investment destinations in Africa.
Ghana’s ranking is based on these factors;
i. Strong growth outlook concentrated around the oil and gas sector.
ii. Non-oil growth to pick up, supported by pro-business reforms and steady improvement in power supply.
iii. Political stability underpinned by strong democracy.
iv. Ghana remains one of the easier business environments in Africa
ALSO READ: Ghana drops to 9th on RMB’s 2019 Top 10 Investment Destinations in Africa
In RMB’s previous report – Where to Invest in Africa 2019, Ghana placed 9 on the league but has moved up to the 6th position in the latest report – Where to Invest in Africa 2020.
