Egypt has come out on top with Morocco and South Africa the second and third most robust markets for investment, according to the latest Rand Merchant Bank report titled ‘Where to Invest in Africa 2021’.
Notably, smaller nations like Rwanda and Botswana moved up the rankings from position five and thirteen in 2020, to position four and five respectively in the latest index.
The report highlights a trend amongst investors willing to bypass traditional markets in Africa in favour of smaller states with economic hygiene.
Rwanda, as seen in a separate report published by PwC this year, has steadily climbed and maintained a high ranking in the ‘ease of doing business’ segment. The country currently ranks second on the continent after Mauritius in that report and is also one of only two countries in Africa to feature amongst the top 50 countries listed by PwC.
According to RMB, each state’s handling of the Covid-19 pandemic has emerged as an important indicator of a market’s ability to absorb external and internal shocks.
“A government’s ability to aid its economy in a period of deep crisis, either through direct fiscal stimulus or an ability to capitalise on its large distribution networks, has become crucial,” its report notes.
