South Africa ranked fourth most attractive investment destination in Africa

21 April 2017

South Africa has been ranked as the fourth most attractive economy for investments flowing into Africa.

This is according to the latest Africa Investment Index 2016 by Quantum Global’s independent research arm, Quantum Global Research Lab published on Wednesday.

Quantum Global is an international group of companies active in the areas of private equity investments, investment management as well as macroeconomic research and econometric modelling.

The Index was constructed from macroeconomic and financial indicators and the World Bank Group’s Ease of Doing Business Indicators, and also averages the country’s macroeconomic and financial indicator rankings on the six different factors.

South Africa received the number four ranking because it scored well on the growth factor of GDP, ease of doing business in the country and significant population.

Botswana was named the most attractive economy in Africa, scoring highly based on a range of factors that include improved credit rating, current account ratio, import cover and ease of doing business.

Morocco was ranked second based on its increasingly solid economic growth, strategic geographic positioning, increased foreign direct investment, import cover ratio, and a favourable businessenvironment.

Egypt was ranked third due to increased foreign direct investment and real interest rates, and a growing urban population, while Zambia was the fifth country on the list due to its significant domestic investment and access to money supply.

According to the report, the top five African investment destinations attracted an overall foreign direct investment of $13.6-billion.

Head of Quantum Global Research Lab, Professor Mthuli Ncube, said: “Despite considerable external challenges and the fall in oil prices, many African nations are demonstrating an increased willingness to achieve sustainable growth by diversifying their economies and introducing favourable policies to attract inward investments.

“Botswana is a case in example – its strategic location, skilled workforce and a politically stable environment have attracted the attention of international investors leading to a significant influx of FDI.”

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