RMB launches Where to Invest report
Africa’s feverish growth has decelerated in recent years and many countries have buckled under the pressure of falling resource prices, security disruptions, fiscal imprudence and adverse weather conditions.
However, most investors still believe Africa offers a treasure trove of opportunities, particularly in those countries which commit to structural reforms.
“Governments are gradually coming to the realisation that diversification is necessary to foster meaningful growth, but transformation cannot be achieved in isolation,” said Nema RamkhelawanBhana, Rand Merchant Bank (RMB) Africa analyst and co-author of RMB’s sixth edition of its annual Where to Invest in Africa – A Guide to Corporate Investment report.
“Structural reforms and greater private sector participation are crucial to unlocking Africa’s potential.
Our analysis of sectoral developments, specifically in the spheres of finance, infrastructure, resources and retail, strongly support this point of view, RamkhelawanBhana added.
The analysis of Africa’s development in RMB’s latest report plots the evolution of African economies using the RMB Investment Attractiveness Index and focuses on the theme “Back to the Future”.
Some surprising investment opportunities in Africa emerge, while former investment favourites lose their allure. “Rather than evaluating the continent at a point in time, we sought to highlight its evolution over the last decade,” said RMB Africa analyst and co-author of the report Celeste Fauconnier.
“We compare current realities to past occurrences to better understand aspects that will shape future events.” RMB’s top 10 investment destinations are remarkably similar to last year with one noticeable difference being Côte d’Ivoire which re-enters the fold after a 13-year hiatus, squeezing Tunisia out of the top 10.
“From a global perspective, Africa is still at the lower end of the investment spectrum”, said RMB Africa analyst and co-author, Neville Mandimika.
Out of 188 countries analysed globally, a large proportion of African countries are still ranked between 120 and 188. South Africa, the only African country featured in the top 40 in 2006, has dropped to 45, surpassed by a number of emerging economies in East Asia and Latin America.