Africa has the hotbed of opportunities for mind blowing investment to take place. East Africa has one of the richest grounds for potential investments in industrialization and its agricultural aspect has enticed investors to splash cash for better production.
On the other scale, Egypt has overtaken South Africa as the top investment destination in the African continent. The former boasts of an economic powerhouse, with high activity scores and incredible growth rates, according to the Rand Merchant Bank’s newly released Where to Invest in Africa 2018.
Morocco, Ethiopia and Ghana completed the third, fourth and fifth positions respectively, and battling out for a top five spot in the lucrative report of the top ten African destinations for investment. The list includes a third Arab African country, with Tunisia at the ninth place.
Egypt has been making reformations to better its economy building it to be a more competitive hub as far as investing is concerned. The milestone came late last year when the government made a decision to allow its exchange rate float freely. Tourism also has been another stronghold for the country that has bloomed over the years.
Reduction in fuel subsidies also played a major role as the state bagged a three-year deal worth $12 billion in loan from the IMF.
Investors were pleased when investment law gave them incentives as 50-percent tax break of investments made in less developed areas, as the government gives a hand in connecting utilities to new projects.
The legislation also brings back private sector free zones, which are exempt from taxes and customs.
The move as well favors private sector free zones, exempted from taxes.
Egypt’s net foreign direct investment rose by 14.5 percent to $7.9 billion in the 2016-2017 fiscal years, which finished in June.