South Africa has been ranked fourth on the latest Africa Investment Index, by Quantum Global Research Lab.
Botswana claims top spot as the most attractive economy for investments flowing into the African continent, according to the 2016 Africa Investment Index. Botswana’s position is based on a number of factors, including improved credit rating, current account ratio, import cover and ease of doing business.
Prof Mthuli Ncube, Head of Quantum Global Research Lab, said: “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 point – its strategic location, skilled workforce and a politically stable environment have attracted the attention of international investors leading to a significant influx of FDI.”
According to the report, the top five African investment destinations attracted an overall FDI of $13.6bn.
South Africa, in fourth position, scored well on the growth factor of GDP, ease of doing business in the country and significant population.
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.
Zambia was the fifth country on the list due to its significant domestic investment and access money supply.
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.
Source: Quantum Global Group