Quantum Global Research Lab releases new 2018 Africa Investment Index.Top five investment destinations attracted a combined net FDI of $12.8 bn in 2016.Egypt, Algeria, Botswana and Cote d’Ivoire amongst top five investment destinations
Morocco is the most attractive economy for investments flowing into the African continent, according to the latest Africa Investment Index 2018 (AII) by Quantum Global’s independent research arm, Quantum Global Research Lab.
According to the AII, Morocco ranks first on the Index based on its increasing solid economic growth, strategic geographic positioning, increased foreign direct investment, external debt levels, social capital factors and overall favourable business environment.
Prof. Mthuli Ncube, Managing Director, Quantum Global Research Lab commented:
“In spite of the improvements to oil production and prices, African economies are turning their attention towards diversification to stimulate industrial development, and to attract investments in non-oil strategic sectors. Morocco has been consistent in attracting an inward flow of foreign capital, specifically in banking, tourism and energy sectors and through the development of industry.”
Top 10 and Bottom 10 countries
Top 10 (best to worst)
Bottom 10 (worst to best)
1 Morocco Central African Republic
2 Egypt Liberia
3 Algeria Somali
4 Botswana Eritrea
5 Cote d’Ivoire Equatorial Guinea
6 South Africa Gambia
7 Ethiopia Sierra Leone
8 Zambia Guinea
9 Kenya Sao Tome and Principe
10 Senegal Zimbabwe
According to recent data by the Moroccan Exchange Control, Morocco attracted nearly $2.57 bn of foreign direct investment (FDI) in 2017, up from 12 percent compared to 2016. The country is being recognised as one of the best emerging markets for overseas investment. International investors are looking at wide range of sectors for investments including in areas such as energy, infrastructure, tourism, and ICT amongst others.
According to AII, the top five African investment destinations attracted an overall FDI of $12.8 bn in 2016. Cote d’Ivoire ranks 5th while being the fastest growing economy in Africa and scores relatively well in liquidity and risk factors such as real interest rate, exchange rate risk and current account ratio. The improved risk profile, combined with strong liquidity, business environment, demographics and the social capital record has rendered Algeria a rise to the 3rd position in the second edition. Botswana, previously ranked as Africa’s top investment destination in the first edition, ranks 4th scoring well in risk factors as well as the business environment.
Prof. Ncube further commented: “Continued FDI inflows will continue to drive the much-needed capital to develop Africa’s primary sectors to meet the demands of the continent’s rapidly growing middle-class, and into manufacturing sectors to create more jobs, enhance economic growth and support structural transformation.”
In terms of improvements in the ranking over the last 3 years, countries such as Swaziland, Angola, Rwanda, Chad, Comoros, Seychelles, South Sudan and Sierra Leone registered strong upward movements as shown in AII three-year rolling rankings.
Quantum Global is an international group of companies active in the areas of private equity investments, investment management as well as macroeconomic research and econometric modelling. Quantum Global’s private equity arm manages a family of funds targeting direct investments in Africa in the sectors of Agriculture, Healthcare, Hotels, Infrastructure, Mining and Timber – as well as a sector agnostic Structured Equity fund.