Nigeria not among top 10 investment destinations in Africa

Africa Investment Index 2018, produced by Quantum Global Research Lab, today
released its list of top investment destinations in Africa and Nigeria, the most
populous African nation and the continent’s biggest economy, doesn’t rank among the
first 10.

According to index, Morocco ranks first among the top 10 investment destinations in
Africa. This rating is based on the increasing solid economic growth, increased
foreign direct investment (FDI), strategic geographical positioning, external debt
levels, social capital factors, and a conducive business environment, according to
Quantum Global.

According to recent data by the Moroccan Exchange Control, Morocco attracted nearly
$2.57 billion of foreign direct investment (FDI) in 2017, up by 12 percent compared
to 2016. The country is being recognised as one of the best emerging markets for
overseas investment.

The AII is constructed from macroeconomic and financial indicators and the World
Bank Group’s Ease of Doing Business Indicators (DBI). To produce an index score that
captures medium-term changing aspects, individual country’s ranking is scaled
relative to a benchmark or reference value (i.e. the past 3-year rolling average

Ranked behind Morocco are Egypt, Algeria, Botswana, Cote d’Ivoire, South Africa,
Ethiopia, Zambia, Kenya and Senegal in that order.

“In spite of the improvements to oil production and prices, African economies are
turning attention towards diversification to stimulate industrial development and to
attract investments in non-oil strategic sectors,” said Mthuli Ncube, Managing
Director, Quantum Global Research Lab. “Morocco has been consistent in attracting an
inward flow of foreign capital, specifically in banking, tourism and energy sector
and through the development of industry.”

According to AII’s data, the top five African Investment destination attracted an
overall FDI of $12.8 billion in 2016. Cote D’Ivoire, tagged as the fastest growing
economy in Africa, ranks fifth and scores well in liquidity, and risk factors such
as real interest rate, exchange rate risk and current account ratio. Algeria and
Botswana rank third and fourth respectively, also scoring well in risk factors as
well as business environment.

Prof. Ncube further commented: “Continued FDI inflows will continue to drive the
much-needed capital to develop Africa primary sectors to meet the demands of the
continent’s rapidly growing middle class, and into the manufacturing sectors to
create more jobs, enhance economic growth and support structural transformation.”

Countries such as Swaziland, Angola, Rwanda, Chad, Comoros, Seychelles, South Sudan
and Sierra Leone all registered strong upward movements as shown in AII’s three-year

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