Ethiopia, Kenya, Rwanda and Tanzania have been ranked among the most attractive destinations in Africa in 2019, as according to a study by South Africa’s Rand Merchant Bank (RMB) that placed them in the fourth, fifth, sixth and seventh positions respectively.
Out of the 53 countries analysed, the top position of the RMB Investment Attractiveness index in Africa went to Egypt for the second time in a row, boasting the largest consumer market of approximately 100 million people and a diversified economy which attracts a lot of investment. It was followed by South Africa and Morocco, which were ranked position two and three respectively.
According to RMB, the ranking to find the most attractive investment environments in Africa was done in accordance to two factors; the economic activity and the operating environment. As a result, Ethiopia emerged best in Eastern Africa as it is considered to be the fastest growing economy on the continent for the next six years. Coming in at second place in the region was Kenya because of the political tranquillity that the country experienced after the general elections in 2017.
Following closely behind as third best ranked in the region was Rwanda which was rated among the fastest growing economies due to its government’s massive support and the allocation of funds to develop the domestic industries. Tanzania took the fourth position in the region for its efforts in development of special economic zones, investment in public infrastructure, growth in the services sectors as well as tax breaks.
At the bottom of the list, ranked position 53 was South Sudan, which was rated the lowest in terms of doing business not only in Eastern Africa but in the whole of Africa. This was as a result of the prolonged political instability in the country.