M a r k e t N e w s

East Africa retains lead as top investment destination in 2019

Posted on : Thursday , 7th February 2019

Where to Invest in Africa 2019? RMB has the answer. Kenya, Rwanda, Ethiopia and Tanzania will be among Africa’s most attractive investment destinations in 2019. According to a report prepared after an extensive study by South Africa based Rand Merchant Bank (RMB). The RMB Investment Attractiveness index scrutinises a countries’ economic and operating environments to evaluate their potential to attract investment. Their report is a key indicator of Africa’s overall business environment which has improved significantly in the past decade despite battling financing, corruption, inadequate infrastructure and weak governance in many countries.

In the overall assessment Egypt has retained the top spot as the most attractive investment destination for the second year in a row, boosted by its growing consumer market, increased availability of hard currency, a stable exchange rate, an economy that is diversified and a steady improvement in the internal business environment, particularly with respect to investment-related reforms.

This is followed by South Africa, Morocco and Ethiopia, along with upcoming leaders Kenya, Rwanda and Tanzania in fifth, sixth and seventh place respectively. 

East Africa as a region has been specially noted as the best performing, the region recorded a 82 per cent increase in the number of Foreign Direct Investment(FDI) projects last year compared to previous years. The region performed stronger than others across the continent, attracting 30 per cent of the continents total FDI with 197 projects.

Ethiopia has emerged as Africa’s fastest-growing economy and has successfully managed to nurture its comparative advantage, particularly in agriculture and manufacturing The demand for goods and services is rising significantly thanks to a gigantic market size of about 100 million people. In Ethiopia, consumer products and retail (primarily textiles), real estate, hospitality and construction sectors are collectively responsible for the surge in the economy and FDI.

Kenya ranks as the most attractive. Much of the progress is attributed to the political reconciliation after the 2017 presidential election and the country’s sustained consumer demand. Kenya reported a 68 per cent increase in inward investment projects last year thus posting a strong case for a potential domination.

Rwanda is second placed and is rated as one of Africa’s fastest growing economies and ranks as one of Africa’s most business-friendly destinations. The tiny nation has more than doubled the efficiency of its business environment in less than a decade. The main driving factor has been the government  large-scale investments in domestic industries and the fact that Rwanda has pursued a long-term economic reform agenda over the years and is expected to continue outperforming other countries in attracting foreign direct investment.

Tanzania placed third in the region, has seen significant overhaul of the business environment thanks to  government tax breaks, development of special economic zones, investment in public infrastructure and growth in the services sector working together as incentives for foreign investors. Tanzania also posted a steep increase in projects supported by FDI. With a total of nine large scale projects in infrastructure as well as private investment in the development of a regional hydrocarbons sector. The recent opening up of the telecoms, shipping, power generation and aviation sectors to foreign investment will also prove to be a further boost to investor interest.

Investors being even more discerning about which emerging and developing markets to invest in, forces the urgent need for governments to prioritise competitiveness-enhancing business-environment reforms. The regions ease of doing business has been boosted by its developed infrastructure, a healthy and well-educated workforce, the most efficient goods market and strong institutions. A largescale rise in growth momentum in Africa and improving individual operating environments are key to attracting foreign investment to the continent. The outlook for intra-regional co-operation also looks bright.  The ongoing framework acceptance of the African Continental Free Trade Area is expected to provide the required boost to intra-regional trade, investment and integration.

 

Source : Bizmart
Featured Companies
  • dubaiexporters.com

Complete List  

Advertisers in previous issue:

  • Specialising in different product lines for road construction industry.
  • Product includes shop fittings, renovations, wood works, kitchen cabinets etc.
  • KlipKlamp Mounts
  • Product includes HIMOINSA distributors gather in Spain, New Magnet lockout tagout devices for plant safety locking etc.
  • Grundfos is a global leader in advanced pump solutions and a trendsetter in water technology.
  • Hangzhou LuoSen Trading Co., Ltd, One subsidiary of Luosen Holding Group, manufactures all kinds of steel roll forming machines
  • Bin Dhahi Trading LLC offers wide range of Items for the use of Building and Road Constructions, Industry, Safety for workers, Construction Chemicals, Power Tools, Hand Tools, Paints, Painting accessories, Adhesives, Abrasives, Water proof/Fire proof
  • At Tridonic our daily quest is to create perfect light. 2,000 experts worldwide are working tirelessly to control, regulate and operate lighting in exactly the way you want it
  • We are primarily involved in the following product range of material processing equipment: Crushing Equipment, Screening Equipment and Washing Equipment.
  • Africa Plant & Equipment magazine offers a unique advertising opportunity to both buyers and sellers of earthmoving equipment, trucks, cranes etc.
  • Seven-Diamonds Steel Complex established in 1996 to produce hot dipped galvanized and cold rolled steel coils. Civil Operation Started in 2001 and production of hot dipped galvanized sheet successfully achieved in 2003 with the annual capacity of 100
  • HawkeyePedershaab is the world’s leading provider of innovative solutions for the concrete pipe and manhole markets
  • Mantrac Kenya Ltd. is the sole authorized dealer for Caterpillar Products in Kenya.
  • Japanese wood market magazine
  • Specialists in wall tiles, floor tiles & wall/floor tiles.
  • Solahart has manufactured over one million solar hot water systems installed in 80 countries on every continent around the world.
  • Our products are widely used in industries of metallurgy, nonferrous metals, machinery, construction materials, petrochemicals, pharmacy, fertilizer and chemistry.
  • SIDC Ceramic Plant is a state of the art blend of European technology and expertise.
  • Stylam Industries Limited, where creativity and skills meet with each other to change the definition of a range of laminates
  • Marble and Granite
  • SFA Group
  • Eco-Steel Africa is committed to providing a turn-key solution with Design & Build Systems that are irrovative, cost-effective, fast ane echo-friendly.
  • SPC "Stroytekh" specializes in the production lines of molding formless (LBF) and house-building factory (DSC).
  • Apex Steel is amongst Kenya
  • Mammoth civil engineering projects involving extended financial outlay and gigantic machineries are invariably undertaken by experienced companies whose track record in engineering expertise and an  estimable client portfolio not only commands respec
Afrotrade International Marketing, Tel: +971-50-6285684
© 1998-2019 Afrotrade