London-based Quantum Global Research Lab is the creator of the Africa Investment Index which aims to provide a guide to the investment attractiveness of countries in the short-to-medium term.
The Index covers all 54 countries on the continent and is based on six factors shown in the graph below provided by Quantum.
The top 10
According to 2016 index calculations, released in April this year, the following countries have emerged as the most attractive for investment:
- South Africa
- Cote d’Ivoire
- Burkina Faso
The list is in a descending order, with Botswana as the top ranked country while Burkina Faso is ranked tenth.
In the rankings for 2016, Botswana climbed four spots and displaced Algeria which was in the top spot last year.
The biggest change in rankings has been seen for Burkina Faso and Tanzania. While the former has risen 12 places from its ranking in the previous year, the latter has gained 11 spots.
South Africa stands fourth, unchanged from the previous year, and along with Morocco, has remained the most consistent over the past four years. While South Africa has placed either fourth or fifth over the period, Morocco has remained in the top three.
Three countries have made it into the top ten for the first time in the past four years for which rankings have been made available by Quantum Global. These are Cote d’Ivoire, Tanzania, and Burkina Faso. Namibia has returned to the top ten after having coming in at 13th in the previous year.
Algeria is the only country which has slipped in rankings among the top ten. It has fallen six places to seventh in 2016 after being the top ranked investment destination in Africa in the previous year. However, the country remains the highest ranked among two of the four risk factors analyzed by Quantum: Import cover and external debt (as a % of Gross National Income).
Interestingly, major economies like two of the big three of sub-Saharan Africa: Nigeria and Angola, along with Kenya and Ghana, did not find a place in the top 10.
In the next article, let’s take a closer look at the top three countries as per the 2016 rankings.