23 Apr 2017

Botswana is in an outstanding position in Africa in terms of attracting investors to its economy.
This is according to Quantum Global’s independent research arm, Quantum Global Research Lab, which released its latest Africa Investment Index for 2016 recently.

According to the Index, Botswana scored highly based on a range of factors that included improved credit rating, current account ratio, import cover and ease of doing business.
 According to the report, the top five African investment destinations attracted an overall Foreign Direct Investment (FDI) of about P142.9 billion.

Morocco was ranked second on the Index based on its increasing solid economic growth, strategic geographic positioning, increased FDI, import cover ratio, and an overall favourable business environment.
The report ranked Egypt third due to an increased FDI and real interest rates as well as a growing urban population.

South Africa ranked fourth but scored well on the growth factor of Gross Domestic Product (GDP) coupled with an ease of doing business in the country and significant population.
Zambia is the fifth country on the list due to its significant domestic investment and access money supply.

Commenting on the Index, Professor Mthuli Ncube, head of Quantum Global Research Lab stated in the report that ‘despite considerable external challenges and the fall in oil prices, many of the African nations were demonstrating an increased willingness to achieve sustainable growth by diversifying their economies and introducing favourable policies to attract inward investments’.

The professor also noted in the report, Botswana’s number one ranking was due to its strategic location, skilled workforce and a politically stable environment which have attracted the attention of international investors leading to a significant influx of foreign direct investment (FDI).
Professor Mthuli further said  with a population of over one billion people and rapidly growing middle class, Africa clearly offered significant opportunities to invest in the continent’s non-commodities sectors such as financial services, construction and manufacturing, among others.

 He however, emphasised that structural reforms and greater private sector involvement were crucial to unlocking Africa’s true potential.
This recognition can be attributed to the country’s enhanced infrastructure development and a steady political and macroeconomic atmosphere, he observed. end