12 Most Attractive African Economies For Investment In 2017

By Peter Pedroncelli AFKI Original Published: May 18, 2017, 6:38 pm

Africa remains a continent with great investment potential, and African economies continue to make efforts to attract investors from around the globe.

With a population of over 1 billion people and a growing middle class, Africa offers significant opportunities to invest in the continent’s non-commodities sectors such as financial services, construction, and manufacturing, amongst others.

Quantum Global Research Lab conducted research to produce the 2017 Africa Investment Index based on a variety of factors such as macroeconomic and financial indicators and the World Bank Group’s Ease of Doing Business Indicators.

A combination of this research then determines the list of African economies that make the most compelling cases for investors.

Here are the 12 most attractive African economies to invest in for 2017.

Sources: Quantum Global, TimesLive, TheNerveAfrica, AfricanReview, CNBCAfrica.

Hive Colab incubator in Uganda is an example of a positive business environment. Photo: Ciril Jazbec/Wired.co.uk

Uganda

Coming in at 12th on the list, the East African nation of Uganda has done well to feature in the top selection of countries, as major regional economy Kenya only placed 15th in this year’s list of the most attractive African economies, three below the Ugandans.

Chinese and Senegalese construction workers building projects in Senegal. (Image: one.org)

Senegal

Senegal has been fairly attractive to international investors for some time, with China already considering the country for certain infrastructure and building investments. The nation is up five places on the list compared to their 2015 placing of 15th on the continent.

A Burkina Faso shop sells solar cell panels. Photo: Wikimedia Commons

Burkina Faso

Another West African nation on the list, Burkina Faso is in the top 10 for 2016, thanks to improvements across the board. This is proven by a three-year average of 23, which was converted to a 10th place according to the most recent data.

Diamond workers continue to boost the economy in Namibia. Photo: Jewellerynewsasia.com

Namibia

Southern African countries continue to do fairly well on this list, and Namibia is one of those countries. Namibia was ranked 13th in 2015, so a jump up the list to ninth is certainly something to celebrate for South Africa’s neighbour to the north west.

Tanzania Ports Authority workers at Dar es Salaam Harbour. Photo: comfix-engineering.com

Tanzania

The highest placing East African nation on this list is Tanzania, with an impressive move up the list in 2016 culminating in an eighth position. By comparison, the Tanzanians have previously placed around the 20th position in this ranking during the last three years.

oran algeria

Algeria is an oil producing nation, but oil price issues have affected the country’s investor attraction. Photo: Faycal.09/Wikimedia Commons

Algeria

North Africa typically does well in this ranking, with Morocco having come top for two out of the last three years, but last year’s top nation Algeria will be disappointed to have declined to seventh place in the 2016 index, especially after third and fourth places on this list in recent years.

Computer class in Abidjan, Cote d’Ivoire. Photo: africa.com

Cote D’Ivoire

The West African nation continues to be a success story for the region and an example to its neighbouring countries. At sixth on the list, Cote D’Ivoire is making the right moves to attract investors from around the world.

mining investment arm

Sentinel Mine in Zambia. Photo: zambiabusinesstimes

Zambia

The top five countries on this list attracted an overall foreign direct investment of $13.6 billion in 2016, and that includes No. 5 on the list, Zambia, where significant domestic investment and access to money supply have been positives for the country.

South African nanosatellites

The TshepisoSat team in South Africa. Photo: Robert van Zyl/tedxinnovations.ted.com

South Africa

South Africa places fourth on the list of the most attractive African economies with regards to investment due to the growth factor of GDP‚ ease of doing business in the country and their significant population.

Egypt inflation

Vendor at the pyramids. Photo: Mohamed Khairat/Egyptian Streets

Egypt

Egypt was ranked third in this particular list for 2016 thanks to an increased foreign direct investment and real interest rates, while a growing urban population also contributed favorably to their place in the list.

Hotel under construction in Morocco shows increased foreign investment. Photo: montaguefox.com

Morocco

Still hovering around the top spots in second place, Morocco was previously first twice and third once on the index in the past three years. The country’s increasing solid economic growth, strategic geographic positioning, increased foreign direct investment, import cover ratio, and an overall positive business environment ensures that it stays on the podium this time around.

Gaborone Botswana

Workers polish diamonds in Gaborone. Photo: Monirul Bhuiyan/Getty Images

Botswana

Perhaps somewhat surprising, but Botswana is the most attractive economy in Africa to invest in for the year 2017. Botswana scores high on the index based on factors such as improved credit rating‚ current account ratio‚ import cover and ease of doing business.

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