Africa continues to increase its investor allure, with South Africa still the continent’s most attractive investment destination, now closely followed by Nigeria, according Rand Merchant Bank’s (RMB’s) latest Where to Invest in Africa report.
Nigeria moved from third to second place in RMB’s report and is “close on the heels of South Africa”, RMB said in a statement on Monday, adding that Nigeria could overtake South Africa in the next two to four years “or even sooner” depending on its rate of economic growth.
Another notable change in RMB’s latest rankings is Ghana’s climb up the rankings, from 10th in 2007 to 4th in 2013, despite being economically one-fifth the size of continental giants South Africa, Nigeria and Egypt.
RMB’s report gauges investment attractiveness using three factors: market size (GDP), economic growth (GDP forecasts for the next five years), and operating environment.
However, RMB notes, African countries still have a way to go in order to compete with the most attractive investment destinations worldwide, with China and the US topping the overall list and only two African countries – South Africa at 33rd and Nigeria at 38th – making the top 40.