Posted on :Monday , 25th September 2017
Tanzania remains one of top 10 countries to invest in from Africa, according to ‘Where to invest in Africa’ despite recent troubles in the country’s mining sector. The latest report was based on the theme “Money Talks’ and this newest edition “follows the money”. The report provides positive news about the country in light of the recent reports by President Maufuli, who has taken a hard stance to discarding corruption in Tanzania.
Tanzania has moved up in the list from number 9 to number 7 in the current top 10 list. The recent reforms have made Tanzania’s business environment friendlier to outside investment and have only contributed positively to the country’s development.
Nigeria and Algeria however, have dropped out the list and now lie the 13th and 15th place respectively with Ethiopia and Rwanda taking their spots in the top 10 list.
The biggest change in the list sees South Africa drop from the first spot on the list for the first time since the initiation of the list. Egypt are the benefactors to this fall and have claimed the first spot for the very first time, and are now Africa’s most attractive investment destination.
The reason for Egypt’s has been cited as a result of a better economic activity score coupled with the fact that South Africa’s growth rate has steadily diminished over the past 7 years. South Africa also continues to have struggles in their government and suffer from the lack of institutional strength. However, South Africa sill remains superior to all other African nations in terms of currency, equity and capital markets. In contrast many other African nations are facing liquidity concerns.
Morocco remain steadily in the third position, as they did in the past 3 editions of the report. Morocco seem to have benefitted substantially from an improved environment for business since the ‘Arab Springs’ in 2010.
Ethiopia have been a big surprise in this year’s list as they have risen to the fourth spot despite the ever increasing travails in the country caused by the unstable socio-economic conditions there. The largest economy of Africa, Kenya have faltered and slipped to the sixth position. As have, Ghana who lie in the fifth position dogged by corruption and lesser economic freedom.
Kenya however, still remains an attractive investment destination for investors because of its pro-market policies, diverse economy and the rise in consumer spending.
Rwanda’s impressive growth rate and sustained attempts at making the economy more diverse have finally shown results, seeing the country finally break into the top 10 after remaining on the fringes of the list for the past few years.