Instead of first place, South Africa has moved down to number two on RMB’s list. Top honours has gone to Egypt, mainly due to its superior economic activity score.
Other countries that have slipped down the rankings are Nigeria and Algeria. Both countries are out of the top 10 in 2018.
Let’s see who did make it into the top 10:
Egypt managed to topple South Africa thanks to two factors: a larger economic score and South Africa’s declining growth rates.
2. South Africa
South Africa is not only plagued by stunted growth rates, but also growing concerns over issues of institutional strength and governance. However, it’s not all bad new for South Africa. Our currency, equity and capital markets are still doing well.
Morocco stays put at number three. This north African country has benefitted markedly from a greatly enhanced operating environment.
Ethopia was at number seven for 2017 but climbs three spots in 2018. This improvement can mainly be attributed to Ethiopia’s rapid economic growth which has made it the largest economy in East Africa.
Ghana slipped one spot, from number four to number five. The culprits are worsening corruption and weaker economic freedom.
Kenya is another big mover. It moves up four places in 2018. Kenya’s diverse economic structure, pro-market policies and brisk consumer spending growth are its most attractive investment features.
Tanzania moves up two spots in 2018. This result is mainly due to a host of business-friendly reforms introduced by the country.
East Africa is doing well! Rwanda also climbs 4 spots, just like Ethiopia. Rwanda’s performance is thanks to being one of the fastest-reforming economies in the world, high real growth rates and its on-going attempts to diversify its economy.
Tunisia reenters the top 10 in 2018 thanks to a combination of factors. Not only did the country introduce structural reforms while affecting an increase security and social stability, it also made great progress in advancing political transition.
10. Cote d’Ivoire
Cote d’Ivoire, one of the fastest-growing economies in Africa, slips two places in 2018. It’s mainly due to a low business environment score, but the country still manages to attract foreign direct investment.
Let’s hope South Africa reclaims its number one spot in 2019. Perhaps we can learn some lessons from the big climbers in 2018’s report.
If you’d like to view the full Where to Invest in Africa report, you can go here.