South African bank RMB investments just released its report on investment attractiveness in African countries, which Egypt tops for the third consecutive year.
Egypt ranked most attractive destination for foreign investment in Africa in 2020
Every year in February, the South African business bank RMB Investments (Rand Merchant Bank) publishes its barometer of investment in African countries. Egypt was ranked most attractive African destination for foreign investment for the third year running.
The second place is occupied by Morocco which progresses by one place and relegates South Africa on the third step of the podium.
Egypt top of the ranking for the third year running
While it is true that the most attractive Economys remain the same overall compared to previous editions, there are significant changes in the different positions held.
As in the previous three editions of RMB’s report, Egypt remains the most attractive African country for investment, due to its large demographic market, the improvement of the business environment and the industrialization policy implemented by the government.
Second place in the ranking is now occupied by Morocco. The country, whose average growth is expected to reach 4% over the next few years, is relegating South Africa, whose economy is subject to a “cyclical slowdown”, “sluggish growth” and “a business environment which has deteriorated”, to the third place.
Kenya, Rwanda and Ghana are respectively 4th, 5th, and 6th while Ivory Coast climbs three places to rank 7th most attractive African country for investments. A performance due to its increasingly diversified economy marked by high growth and major infrastructure projects. The last three places of the report are occupied by Nigeria (8th), Ethiopia (9th) and Tunisia (10th).
Can do better …
On the other side of the spectrum, the report also points to countries that are losing attractiveness to investors. Among those, South Africa, Ethiopia and Tanzania registered declines. The Democratic Republic of the Congo, despite its first peaceful alternation at the head of the state, continues to decline.
It now ranks 31st, behind Madagascar and Cape Verde and just ahead of Mauritania, Gabon (in very clear decline) and Djibouti (up 10 places).