Quantum Global’s independent research arm, Quantum Global Research Lab., has released its latest Africa Investment Index 2016. According to the index, Botswana is the most attractive economy for investments flowing into Africa. Botswana scores were highly based on a range of factors that include improved credit rating, current account ratio, import cover and ease of doing business.
“Despite considerable external challenges and the fall in oil prices, many of the 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 the 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,” Prof Mthuli Ncube, Head of Quantum Global Research Lab stated.
According to the Index, the top five African investment destinations attracted an overall FDI of $13.6 billion. Morocco was ranked second on the index based on its increasing solid economic growth, strategic geographic positioning, increased foreign direct investment, import cover ratio, and an overall favourable business environment. Egypt was ranked third due to an increased foreign direct investment and real interest rates, and a growing urban population. The fourth country on the list, South Africa, scored well on the growth factor of GDP, ease of doing business in the country and significant population. Zambia was the fifth country on the list due to its significant domestic investment and access money supply.