The RMB (Rand Merchant Bank) Where to Invest Report

Every year, the Rand Merchant Bank publishes the Where to Invest in Africa report. This year, the ninth edition of the report once again features the top ten African countries to invest in Africa for the coming year with some interesting changes. As Guinea and Mozambique made the strongest gains and South Africa, Tanzania and Ethiopia were noted as some of the most renowned countries to experience a decline in investment potential with Tanzania losing its place in the top 10.

The rankings are as follows:

  1. Egypt
    With a highly sophisticated business sector, Egypt has massive market potential. The country has drastically improved its business environment which has enhanced economic growth and once again placed it on the international investment map.
  2. Morocco
    With an anticipated medium-term growth rate of 4% and as a new member of the Economic Community of West African States, Morocco has greatly enhanced its investment potential since the Arab Spring.
  3. South Africa
    Despite slipping down yet another notch, South Africa remains an African hotspot for investment, and for a good reason. While many other African countries face liquidity constraints, South Africa’s financial markets and its level of financial inclusion continues to secure its space as a prime investment destination.
  4. Kenya
    After the 2017 elections were disputed and Kenya experienced a political reconciliation, the country achieved a growth rate of over 5% and was propelled into a higher spot on the list. An upsurge in FDI and substantial government investment in the country’s infrastructure has further bolstered the economy which is becoming increasingly diverse.
  5. Rwanda
    According to the scoring system of the World Bank, Rwanda has the second-best business environment on the continent. In less than 10 years the country has more than doubled its operational efficiency. There is significant investment in domestic industries and FDI is steadily increasing.
  6. Ghana
    A strong democratic stance resulting in political stability, which, along with the country’s easy business environment, is creating a strong growth outlook. This is particularly focused around the oil and gas industries.
  7. Côte d’Ivoire
    Côte d’Ivoire has several large infrastructure projects backed by foreign investment, the government and aid inflow underway. Known for its economic diversity, the country is experiencing robust growth rates supported by pro-business reforms and political stability.
  8. Nigeria
    Nominally, Nigeria has the largest economy in Africa. Because of its rich resources and favourable demographics, the country attracts strong FDI. Improved macroeconomics, implemented changes in FX regulations and recovered commodity prices have all played a role in helping Nigeria maintain its ranking in the top 10.
  9. Ethiopia
    With a massive population of close to 100 million, consumer demand is rising exponentially in Ethiopia. But while it is the fastest-growing economy in Africa, the constraints on foreign ownership is still hampering FDI.
  10. Tunisia
    A favourable operating environment and a reasonable market size has supported the re-entry of Tunisia into the top 10. A simplified new investment code has begun to attract multinational manufacturing companies and boosted FDI.

Sources:
https://www.rmb.co.za/landing/where-to-invest-in-africa

Top 10 African Countries to Invest in 2020

The RMB (Rand Merchant Bank) Where to Invest Report

Every year, the Rand Merchant Bank publishes the Where to Invest in Africa report. This year, the ninth edition of the report once again features the top ten African countries to invest in Africa for the coming year with some interesting changes. As Guinea and Mozambique made the strongest gains and South Africa, Tanzania and Ethiopia were noted as some of the most renowned countries to experience a decline in investment potential with Tanzania losing its place in the top 10.

The rankings are as follows:

  1. Egypt
    With a highly sophisticated business sector, Egypt has massive market potential. The country has drastically improved its business environment which has enhanced economic growth and once again placed it on the international investment map.
  2. Morocco
    With an anticipated medium-term growth rate of 4% and as a new member of the Economic Community of West African States, Morocco has greatly enhanced its investment potential since the Arab Spring.
  3. South Africa
    Despite slipping down yet another notch, South Africa remains an African hotspot for investment, and for a good reason. While many other African countries face liquidity constraints, South Africa’s financial markets and its level of financial inclusion continues to secure its space as a prime investment destination.
  4. Kenya
    After the 2017 elections were disputed and Kenya experienced a political reconciliation, the country achieved a growth rate of over 5% and was propelled into a higher spot on the list. An upsurge in FDI and substantial government investment in the country’s infrastructure has further bolstered the economy which is becoming increasingly diverse.
  5. Rwanda
    According to the scoring system of the World Bank, Rwanda has the second-best business environment on the continent. In less than 10 years the country has more than doubled its operational efficiency. There is significant investment in domestic industries and FDI is steadily increasing.
  6. Ghana
    A strong democratic stance resulting in political stability, which, along with the country’s easy business environment, is creating a strong growth outlook. This is particularly focused around the oil and gas industries.
  7. Côte d’Ivoire
    Côte d’Ivoire has several large infrastructure projects backed by foreign investment, the government and aid inflow underway. Known for its economic diversity, the country is experiencing robust growth rates supported by pro-business reforms and political stability.
  8. Nigeria
    Nominally, Nigeria has the largest economy in Africa. Because of its rich resources and favourable demographics, the country attracts strong FDI. Improved macroeconomics, implemented changes in FX regulations and recovered commodity prices have all played a role in helping Nigeria maintain its ranking in the top 10.
  9. Ethiopia
    With a massive population of close to 100 million, consumer demand is rising exponentially in Ethiopia. But while it is the fastest-growing economy in Africa, the constraints on foreign ownership is still hampering FDI.
  10. Tunisia
    A favourable operating environment and a reasonable market size has supported the re-entry of Tunisia into the top 10. A simplified new investment code has begun to attract multinational manufacturing companies and boosted FDI.

Sources:
https://www.rmb.co.za/landing/where-to-invest-in-africa

27 thoughts on “Top 10 African Countries to Invest in 2020”

  1. Never even considered investing in African countries, should have considered it sooner considering all of the resources that Africa has.

    Reply
  2. Those are really sweet spot to invest in Africa. If I get resources then I would be investing on Nigeria as it’s economy is perfect for my business type.

    Reply
  3. This is really an informative post for me. I have learned a lot about investment in new countries which are really potential for new investors. Thanks the author for sharing such an informative article with us.

    Reply
  4. These ten countries definily has a lot of resouces, so to invest money there, with a good scope, you can build a successful business

    Reply
  5. Super smart money. Loved this article, Thank you for the information. Will absolutely be looking into this for the future of my investments.

    Reply

Leave a Comment