Ghana named among top 10 investment destinations in Africa

Although the country recently had gone through series of banking crisis in its history, and also the performance of the local currency has not been stable for some time, the Rand Merchant Bank Limited (RMB), a corporate and investment banking arm of FirstRand Limited named it as being part of the countries with attractive investment destinations.

The Johannesburg-based RMB stated in its latest annual study known as ‘Where to Invest in Africa’ said that “Ghana has strong growth rates focused around the oil and gas sector, while the non-oil sector growth is supported by pro-business reforms.”

It further looked at two important conditions for viable investment which included economic activity and the operating environment.

Ghana emerged the 9th African country in the 2019 rankings.

RMB analysts and co-authors of the study, Celeste Fauconnier and Neville Mandimika revealed that “Competing economies have shown greater improvements in both the economic and operating environment indices,’’ adding that, “Structural strength could help Ghana attain its 2019 growth forecast.’’

Nigeria and Cote d’Ivoire are the two other West African countries in the top 10.

Here are the top 10 attractive investment destinations in Africa and their key attractiveness indicators

1. Egypt

Egypt emerged the largest African market in gross domestic product terms, boasting the largest consumer market in the Middle East and North Africa.

2. South Africa

South Africa had the second position as a hot spot for foreign direct investment.

3. Morocco

Morocco has a growth rate expectation of 4% over the medium term, its operating environment and investment appeal have been greatly enhanced since the "Arab Spring".

4. Ethiopia

Ethiopia is set to be the fastest growing economy in Africa, averaging 8.2% for the next six years, a slight normalization from the 10% average experienced over the past decade. The robust momentum is supported by improved macroeconomic policies and higher government investment in local industries and human capital.

5. Kenya

Kenya delivered a diverse economy and sustained expansion in consumer demand, urbanization, EAC integration, structural reforms and infrastructural development, which include an oil pipeline, railways, ports and power generation.

6. Rwanda

Rwanda is another fast-growing economy, boasting the second-best business environment. Although a small market, the government is investing heavily in its domestic industries, with a significant increase of FDI recorded over the past decade.

7. Tanzania

Tanzania is expected to grow at 6.5% over the next five years. The economy is expected to overtake Kenya, supported by its resource-based manufacturing, tax incentives and development of special economic zones. It battles, however, with a weak business environment.

8. Nigeria

Nigeria jumped back into the top 10 due to improved macroeconomics, supported by recovering oil prices and production and favourable demographics attracting FDI.

9. Ghana

Ghana has strong growth rates concentrated around the oil and gas sector, while the non-oil sector growth is supported by pro-business reforms.

10. Côte d'Ivoire

Côte d'Ivoire has strong growth rates, supported by large infrastructural investment, particularly in transport and energy.