Africa is heavily endowed with natural resources and human capital. However it is pivotal to invest in Africa’s infrastructure is required to fully utilise her resources and maximise her potential. Africa’s infrastructure needs are between US$130bn and US$170bn annually, but the continent’s available capital is insufficient to achieve this. Currently only US$45bn is being spent on infrastructure.
Africa has experienced modest growth from 3.9% in 2018 to 4.1% in 2019. Sub- Saharan Africa (SSA), more specifically, is set to grow by 3.4% and 3.7% over the same period. High debt levels and a slowdown in credit growth pose significant risks to Africa’s medium-term growth outlook.
Most African countries are forecasted to grow above the region’s average between 2018 and 2023. 11 of those will grow above 6%. Ethiopia is set to be the fastest-growing economy in Africa over that period, averaging 8.2% for the next six years – a slight normalisation from the 10% average experienced over the past decade. Côte d’Ivoire and Rwanda are also expected to outperform SSA countries.
The following factors were considered in establishing the methodology for investment attractiveness :
- The economic activity, expressed as a weighted average of market size and forecasted levels of GDP growth; and
- The operating environment, depicted as a weighted average of four international surveys measuring.
Top 20 countries to invest in Africa
| 2018 | 2019 | Change in ranking between 2017-2018 | 2018 | 2017 | |
| Egypt | 1 | 1 | 0 | 6.41 | 6.35 |
| South Africa | 2 | 2 | 0 | 6.25 | 6.33 |
| Morocco | 3 | 3 | 0 | 6.11 | 6.12 |
| Ethiopia | 4 | 4 | 0 | 5.78 | 5.72 |
| Kenya | 5 | 6 | > 1 | 5.75 | 5.68 |
| Rwanda | 6 | 8 | < 2 | 5.70 | 5.53 |
| Tanzania | 7 | 7 | 0 | 5.57 | 5.59 |
| Nigeria | 8 | 13 | > 5 | 5.52 | 5.32 |
| Ghana | 9 | 5 | < 4 | 5.50 | 5.69 |
| Côte d’Ivoire | 10 | 10 | 0 | 5.48 | 5.51 |
| Tunisia | 11 | 9 | < 2 | 5.39 | 5.52 |
| Mauritius | 12 | 14 | > 2 | 5.38 | 5.24 |
| Botswana | 13 | 12 | < 1 | 5.34 | 5.39 |
| Uganda | 14 | 11 | < 3 | 5.33 | 5.40 |
| Algeria | 15 | 15 | 0 | 5.10 | 5.20 |
| Senegal | 16 | 16 | 0 | 5.08 | 5.00 |
| Zambia | 17 | 17 | 0 | 5.07 | 4.97 |
| Cameroon | 18 | 21 | > 3 | 4.65 | 4.52 |
| Burkina Faso | 19 | 18 | < 1 | 4.57 | 4.61 |
| Angola | 20 | 27 | > 7 | 4.52 | 4.12 |
(Source: RMB)
She is Africa is a free, informative website. If you find value in any of my content, please consider making a donation to keep She is Africa running.
For the full report on where to invest in Africa please visit RMB
