SA still first for investment in Africa

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.

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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.

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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.