Top 10 African Countries to Invest in 2019

The Rand Merchant Bank (RMB) has released its 2018 edition of Where to Invest in Africa. The report assesses the economic outlook and investment opportunities in Africa. In this seventh edition, there are significant changes in the top 10 African nations to invest in and some warnings for the future economic outlook across the continent.

According to Nema Ramkhelawan-Bhana, African analyst of RMB, “Africa’s importance to the global economy is reflected in a number of noteworthy publications that have been distributed by respected organisations in recent years and we understand that no two businesses are alike and that they regard macroeconomic, political, social and operating variables differently.”

On the brink of greatness, the continent has soared in its economic endeavors especially in the area of investment. Africa has anticipated high productivity and economic gains over recent years. 

Real GDPs have achieved steady growth, but not as accelerated as the continent might have envisaged. This is partly due to inconsistencies found in the structural reforms of various economies. By bridging and focusing on strong reforms, expert analysts and investors predict the continent as an investment haven that’s yet to be fully exploited.

East Africa making significant progress?

Despite significant socio-political instability negatively impacting the country’s business environment and investment potential, Ethiopia has jumped up one spot into fourth as compared to fifth in the previous sixth and fifth publications. If stability came with economic progress, the now East African largest economy could have ranked higher.

As a result of Ethiopia’s economic gains, Kenya has lost its placing as the region’s largest economy and moved down to fifth on the investment ranking. However, Kenya is still one of the continent’s strongest economies but it comes with frailties that highlight many of the key issues facing African nations: corruption, ethnic divides, political instability and rising debts.

Also, Tanzania is now one of Africa’s most exciting investment destinations climbing up to number seven in this year’s ranking. Tanzania is hot on Kenya’s tail and it won’t surprise many to see it also overtake the region’s former leader.

Next, another one of East Africa’s hottest prospects re-enters the top 10. Rwanda claims the sixth spot in this year’s report as the country continues to demonstrate ongoing growth and diversification.

West Africa on the Decline

Ghana, previously on fourth, slipped to ninth one step behind Nigeria - which is now the best Investment destination in West Africa. Despite a myriad of economic challenges, the country labours on as it slowly rebuilds confidence in its processes and policies under the watchful eye of the International Monetary Fund (IMF).

Côte d’Ivoire also slips down to tenth from eighth in 2016. After years of political paralysis, the world’s top cocoa producer has earned its place in the sun, supported by a booming economy, an emerging middle class, robust infrastructure development and an improved business environment.

North African making a statement

Egypt prides as the leading investment destination in Africa as it has tried to succeed in consolidating part of the economic gains accumulated in the aftermath of the Arab Spring. However, the country’s operating environment could have been an inhibiting factor as Egypt’s rise has to do more with South Africa’s decline.

Morocco is hot on the heels of its North African peer, holding steady at number three for a second consecutive year, buoyed by solid economic growth, favourable geographic positioning, sturdy infrastructure, strong regulatory policies and a stable political setting.

One Country in the South of Africa, and it is called South Africa

Finally, South Africa falls to number two on the list, losing its coveted spot as a result of faltering growth outlook and uncertain business environment. Despite the streams of negative news, the country remains a bastion of institutional integrity and continues to boast as one of the best-operating environments in Africa.

Where in Africa to invest in 2019? 

Here’re the “Top 10 Most Attractive Countries” for investors according to a new report by @RMB_CIB.