SA most attractive African investment destinationDate posted: 11.05.2016 | Author: Harry Bovensmann
South Africa still ranks as the most attractive economy for investments destined for the continent despite challenges emanating from slow growth, a gloomy ratings outlook and waning perceptions.
SA, the region’s most industrialised and second largest economy, is the most attractive investment destination in Africa in its Africa Attractiveness Index. Morocco, Egypt, Kenya and Mauritius are ranked second, third, fourth and fifth respectively.
Despite macroeconomic challenges (and a low-growth environment), South Africa still outperforms most other African economies due to relatively high scores across every other dimension (partly a reflection of the fact that the South African economy is more developed than any other African economy.
A weaker rand currency has also hobbled South Africa, although this is a problem that is shared with most regional peers such as the Malawi kwacha and Nigerian naira.
Economic growth in SA is likely to be 0.6% this year, according to the IMF, although South Africa Reserve Bank governor Lesteja Kganyago was quoted on Wednesday by the Financial Times as saying “green shoots” of recovery are beginning to appear.
Botswana is ranked seventh while Nigeria – Africa’s largest economy – is ranked fifth. SA’s neighbours, Zambia and Mozambique are ranked 17th and 20th while Botswana is ranked in seventh position.