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)

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For the full report on where to invest in Africa please visit RMB