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Africa has attracted significant investments and has received an estimated $20 billion in direct investment from Japan between 2016-2018. According to a survey by Japan External Trade Organisation (Jetro), Kenya has been ranked first on top future investment destinations for Japanese investors.
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Top 10 Future Investment Destinations Rankings :2015 - 2020
In the overall rankings, Kenya took the top spot with an investment choice of 35.1%, followed by South Africa (33%), Nigeria (30%), Ethiopia (21.3%), and Ghana (19.5%), in the top five. Morocco, Mozambique, Cote d’Ivoire, Egypt, and Tanzania made up the top 10 of the survey.
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Top 20 future investment destinations for Japanese investors.
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Top 20 future investment destinations for Japanese investors.
The report showed that Kenya ranked top position due to Emerging startup companies and potential for collaboration, expanding demand for infrastructure, potential of geothermal power, the hub function of East Africa, economic stability, Japan’s ODA and investment projects, the growth of the automobile industry, market size and future potential growth.
South Africa is a mature economy with a certain level of infrastructure development.
South Africa came in second on the merits of being a mature economy with a certain level of infrastructure development; industrial power in the development of the automobile industry; abundant metal mineral resources; and enhancement of personal purchasing power as a result of economic development.
Nigeria has the largest room for development in sub-Saharan Africa
Nigeria ranked third for having population increase and market size; overwhelming market scale. The country also has the largest room for development in sub-Saharan Africa with high potential of consumer goods market, enhancement of personal purchasing power, abundant energy resources; oil and gas development; and growth of the automobile industry.
Ethiopia has inexpensive labour, cheap electric power
Ethiopia was ranked fourth due to its high growth rate and population size, inexpensive labour, cheap electric power, increase in companies in the textile industry, the development of light industry, ODA/investment projects, distribution in East Africa, and privatisation of state enterprises.
Ghana is the hub of West Africa/ECOWAS
In fifth place is Ghana for having stable politics, economy, and legislative system; relatively good security; energy development such as electric power; the hub of West Africa/ECOWAS; expansion of market size and future growth potential; increase in middle class; and the progress of automotive policy.