According to the annual Rand Merchant Bank (RMB) ratings of Where to invest in Africa, Tanzania is quickly gaining on Kenya as East Africa’s number one investment destination.
Having entered the top ten tier but two years ago, Tanzania jumped two spots up this year to land on number seven just a spot behind Kenya.
The country’s economists peg the improvement to two things, curbed corruption and favorable policies, all of which they blow the trumpet to the country’s President, Dr. John Magufuli.
Reduced corruption means less bureaucracy and red tapes, it means investors can register new businesses faster with less huddles and do so much more affordably.
On the other hand there is the matter of conducive business environment including financing options and establishment of special export and manufacturing zones within which investors enjoy substantial incentives.
Then there is the ‘mainstreaming’ of the country’s Capital Market’s which has seen increasingly more and more investment come into the country by giving investors more options; diversifying their investment portfolios.
Africa’s Investment Movers and Shakers
- South Africa
- Cote d’Ivoire
North Upsets South
This is the first time South Africa hasn’t ranked first in the report, highlighting the “sluggish growth rates” which have deteriorated over the last seven years –
In its place now seats Egypt which is followed by well performing but stagnated Morocco, which for the third consecutive year has maintained the third position.
Not surprising but nonetheless very impressively, Ethiopia is now ranked East Africa’s largest economy and with the potential to do even better should internal socio-political wrangles be ironed out.
To take the fourth place, Ethiopia displaced Ghana down to fifth place and pundits blame it on the latter’s worsening corruption cases.
Then comes the former regional economic power house Kenya that falls down to the sixth place and has also been dethroned by Ethiopia as East Africa’s largest economy.
Right on its heels is the region’s quickly upcoming Economic power house and a most attractive investment destination, Tanzania.
Another impressive performer is Rwanda at number eight having returned to the top 10 list with a bang and is probably here to stay and maybe even rule the list.
The small East African county but large economic power centre is trailed by North Africa’s Tunisia in the ninth spot and last on the top ten list is West Africa’s Cote d’Ivoire slips down two spots into number ten on the list
The last anyone would expect is for Nigeria to fall from the list of Africa’s top ten investment destinations but, this year, for the very first time, Nigeria is not on Rand Merchant Bank (RMB) top list.