By Abdi Ali
Published April 20, 2017
Botswana is the most attractive economy for investments flowing into Africa.
The southern African country scores highly on include improved credit rating, current account ratio, import cover and ease of doing business, according to the latest Africa Investment Index (AII) 2016.
Morocco is ranked second on the Index based on its increasing solid economic growth, strategic geographic positioning, increased FDI, import cover ratio, and an overall favourable business environment. While Egypt is third due to an increased FDI and real interest rates, and a growing urban population, South Africa, fourth, scores well on the growth factor of Gross Domestic Product (GDP), ease of doing business in the country and significant population. Zambia is fifth on the list due to its significant domestic investment and access to money supply.
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Mthuli Ncube, Head of Quantum Global Research Lab (QGRL) that conducted the survey, says Botswana’s “strategic location, skilled workforce and a politically stable environment have attracted the attention of international investors leading to a significant influx of Foreign Direct Investment (FDI).”
Though the top five African investment destinations attracted an overall FDI of US$13.6 billion, Prof Ncube says “structural reforms and greater private sector involvement are crucial to unlocking Africa’s true potential.”
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The AII, says QGRL, is constructed from macroeconomic and financial indicators and the World Bank Group’s Ease of Doing Business Indicators (DBI).