Rand Merchant Bank’s eight ‘Where to invest in Africa’ report has named Egypt as the top country for investment in 2019 – the North African country has retained its position on the Top 10 list, with South Africa and Morocco holding steady in second and third position.
According to the report’s authors, Celeste Fauconnier and Neville Mandimika, South Africa has held its position as President Cyril Ramaphosa is intent upon attractive foreign direct investment. “The country’s currency and capital markets remain a cut above the rest of the African countries,” says Fauconnier. However, subdued economic growth and the 2019 elections could hamper policymaking at a crucial time.
The report says Egypt is attractive as it is the largest African market in GDP terms, boasting the largest consumer market in the Middle East and North Africa. Morocco is Africa’s fifth-largest market, with a growth-rate of 4% expected in the medium term.
Ethiopia is expected to be the fastest-growing economy in Africa, averaging 8.2% for the next six years, thanks to its resolution of the conflict with Eritrea, its improved macroeconomic policies and higher government investment in local industries and human capital.
Kenya and Rwanda are also expected to attract significant investment.
The report suggests that efficient infrastructure is what will truly unlock Africa’s growth potential. According to the World Bank, a lack of such infrastructure currently shaves up to 2.6% off Africa’s average per-capita growth rate.