Africa gains popularity as investment destination, says investment bank

AFRICAN countries will continue to be attractive foreign investment destinations, with some Arab African states showing economic resilience, despite political instability following the Arab Spring of 2011, says Rand Merchant Bank (RMB).During a conference call on Wednesday, the African investment bank said South Africa remained the most attractive country on the continent for foreign direct investment, followed by Egypt, Nigeria, Ghana and Tunisia. South African purchasing power remained strong, although the country still battled with poverty and inequality.RMB analyst Celeste Fauconnier said African countries dominated the list of the world’s fastest-growing economies and were increasingly seen as good places to invest.“Between 1995 and 2012, Africa has done phenomenally well,” she said. “However, African countries are still a far cry from the leading developed nations of the world.”Ms Fauconnier said investors saw great opportunities for foreign investment, especially in the resources sector, in sub-Saharan Africa. She said in terms of business and investment, South African companies now operated in every country in Africa.Tunisia is among the richest countries on the continent, while other Arab nations such as Morocco and Egypt have also mostly weathered economic pressure arising from the Arab Spring events.In previous years, RMB only included the Southern African region in its research, but last year added the northern region of the continent. Ms Fauconnier said some countries in North Africa debuted above previously indexed nations in RMB’s research.Countries such as Rwanda, Ghana and Mauritius enjoyed economic growth and attracted investors, she said, adding that in Rwanda a business could be registered online in about 24 hours.

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Africa gains popularity as investment destination, says investment bank