The Top 10 African Countries for Investment

(Nye Longman in Africanbusinessreview)

 

 

 

 

KPMG recently highlighted its criteria for the best investment-worthy African countries, in addition to a list detailing those counties it thought were the best.

 

The criteria used to judge the attractiveness of investments were: democratic political climates, functioning free markets, large potential markets and large populations. Also considered was the availability of raw materials, as well as the presence of substantial inexpensive labour forces.

 

1. South Africa

Until recently, South Africa was widely regarded as the continent’s largest economy, before it was unseated by Nigeria. Investments in South Africa remain the strongest due to its advanced economy, infrastructure, and human capital.

 

2. Nigeria

Nigeria is notable for its meteoric rise to the top as Africa’s largest economy. The nation has suffered setbacks due to the slump in global oil prices, as well as instability in the North due to the actions of the Radical Islamist group Boko haram.

 

3. Angola

Angola has one of the fastest growing economies on the planet and between 2001 and 2010 its GDP grew by an impressive 11 percent. Like Nigeria, oil accounts for a major proportion of income, with the recent slump highlighting a critical need for diversification.

 

4. Mozambique

Mozambique is an interesting choice for number 4 on the list, since the country is recovering from serious economic turmoil. Through monetary reform and various political measures, Mozambique has attained a promising B+ credit rating from Standard and Poor’s credit agency which indicates that the country can meet its financial commitments.

 

5. Ethiopia

In 2013 Ethiopia has a GDP growth of 7 percent, placing it as one of the fastest growing economies in the world. Due to massive population growth, there is great demand for job creation and also a very large potential labour force.

 

6. Tanzania

Tanzania has the twelfth largest economy on the continent, and also has the second largest economy in the East African Community (EAC). It has also seen GDP growth of over a third since several restructuring measures were implemented in 2014.

 

7. Ghana

In both 2012 and 2013, Ghana experienced a GDP growth of over 8 percent; one of the highest rates in the world. The country is also in the process of commissioning a new thermal energy power plant to complement its hydroelectric facility.

 

8. Botswana

Since the country gained independence, Botswana has had the highest average economic growth rate in the world, at an average of 9 percent annually between 1966 and 1999; furthermore private sector employment experienced a similar 10 percent growth per year during this time.

 

9. Mauritius

Since independence in 1968, Mauritius has built a diversified economy, with tourism, manufacturing, and financial services becoming key growth sectors.

 

10. Kenya

Due to its relatively well developed infrastructure and utility networks, Kenya is often seen as an alternative financial hub to South Africa. The country has a BB+ credit rating and a stable outlook for the future, which means that increased foreign investment, could be the stimulus the country needs for continued development.

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