Botswana, Mauritius, Namibia fail to break into top 10 Africa investment destinations
Botswana, Namibia and Mauritius have missed out on the list of top 10 best investment destinations in Africa in 2018 but are seen as “investment grade” economies, according to a new report by South African-based Rand Merchant Bank.
The report, titled “Where to Invest in Africa 2018”, showed that Egypt has now replaced South Africa as the best investment destination on the continent.
South Africa lost its traditional spot at the top of the investment rankings. South Africa has ranked in the number one position for the past six years.
Surprisingly one of the biggest economies in Africa, Nigeria did not make it in the top 10 and was relegated to 13th spot.
Although Namibia, Botswana and Mauritius have consistently ranked in the top 20 of the RMB Where to Invest in Africa index, their inability to reach the top 10 is mostly due to the restricted size of their domestic markets.
Rand Merchant Bank said its Where to Invest in Africa 2018 Investment Attractiveness Index balances economic activity against the relative ease of doing business and the impact of the 2016 economic slump.
Commenting on the report, RMB Africa analyst and index co-author Celeste Fauconnier said over the past three years, some African governments have had to implement deep and painful budget cuts, allow multiple currency devaluations and adopt hawkish monetary policy stances – all as a result of a significant drop in traditional revenues.