Kenya improved marginally as one of the top countries in Africa to invest in, according to the Where to Invest in Africa 2020 report.
Having placed fifth in the survey during the previous edition of the report, Kenya moved up one place to fourth on the study undertaken by South Africa’s Rand Merchant Bank.
“The above 5 percent expected growth rates, helped by favourable weather and political reconciliation after 2017’s disputed elections, has propelled Kenya one spot higher than 2019,” the report reads in part.
Kenya’s movement saw it go ahead of Ethiopia, who had placed fourth in the Where to Invest in Africa 2019 report. Ethiopia underwent a huge tumble, falling to ninth on the ranking. Recently, Ethiopia was reported to have pipped Kenya as the top destination for foreign direct investment in East Africa, reigning in Ksh700 billion last year.
For Kenya, the Where to Invest in Africa 2020 report continued to say, “The economy benefits from diversity as well as a sustained expansion in consumer demand, urbanisation, East African Community (EAC) integration, structural reforms and investment in infrastructure, including an oil pipeline, railways, ports and power generation.”
Egypt continued to top the ranking of African countries to invest in for the fourth consecutive year. The report said that enhanced government programmes, as well as improved investment from the private sector, have continued to push the North African nation’s attractiveness.
“The enormity of the market paired with a sophisticated business sector relative to other countries makes Egypt the most attractive investment destination in Africa,” reads the report.
Morocco, the fifth-largest market on the continent, made it an all-North African top two by coming in second place, overtaking South Africa who slid down to third. The report said that Morocco’s reintegration into the African Union (AU) and accession to the Economic Community of West African States (ECOWAS) have enhanced its investment appeal.”
South Africa’s slip was occasioned by depressed levels of growth and a lack of structural reform. Despite the downward slide, South Africa remains a hotspot for portfolio investment, the study said. “With many countries facing severe liquidity constraints, South Africa’s financial markets and level of financial inclusion are still a cut above the rest.”
Rounding off the top five is Rwanda, with the Paul Kagame led country said to have the second-best business environment in Africa.
The top 10 is concluded by Ghana, Cote d’Ivoire, Nigeria, Ethiopia and Tunisia, which broke into the top 10 at the expense of Tanzania.
Kenya’s on the African Investment Map
In the previous edition of the report, Kenya was said to have a diverse economy as against the rest of Sub-Saharan Africa.
However, the report last year said that structural constraints, such as infrastructure deficiencies, continue to weigh on the Kenyan economy. Despite this, the survey said that Kenya has no significant risks of falling out of the top 10 positions on the study.
