Tuesday 27 March 2018
Last update on Tuesday, March 27, 2018 At 9:37 AM
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.
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.
“In spite of the improvements to oil production and prices, African Economys 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” commented Prof. Mthuli Ncube.
Prof. Mthuli Ncube, Managing Director, Quantum Global Research Lab.
Top 10 and Bottom 10 countries
|
Rank |
Top 10 (best to worst) |
Bottom 10 (worst to best) |
|
1 |
Morocco |
Central African Republic |
|
2 |
Egypt |
Liberia |
|
3 |
Algeria |
Somalia |
|
4 |
Botswana |
Eritrea |
|
5 |
Cote d’Ivoire |
Equatorial Guinea |
|
6 |
South Africa |
Gambia, The |
|
7 |
Ethiopia |
Sierra Leone |
|
8 |
Zambia |
Guinea |
|
9 |
Kenya |
Sao Tome and Principe |
|
10 |
Senegal |
Zimbabwe |
According to AII, the top 5 African investment destinations attracted an overall FDI of $12.8 billion in 2016. Ivory Coast 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.
According to recent data by the Moroccan Exchange Control, Morocco attracted nearly $2.57 billion of foreign direct investment (FDI) in 2017, up from 12% compared to 2016. The country is being recognised as one of the best emerging markets for overseas investment.
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.
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