Top 10 African Countries to Invest in 2020

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Nigeria




African countries are becoming more strategic in creating healthy business environments and chasing investments

Stakeholders attribute the success of viable economies to high foreign investments – which is only possible through creating enabling business environments.

Africa’s unhealthy dependency on its natural resources has been criticized and continues to have a double effect on its economy and people. Leaders in the continent have done very little in the past to create healthy business environments for local and foreign investments; this has also deprived the countries reaping from the numerous international business activities taking place within their borders. However, it appears the narrative is changing; albeit slowly. Many African countries are becoming more strategic in creating healthy business environments and chasing investments.

To achieve this, they are stepping up to create healthy business environments that provide good value for investments.

In a recent ranking released by Rand Merchant Bank (RMB) tagged “Where to Invest in Africa 2020”, the success of North African nations in creating healthy business environments was evident. Egypt, Morocco, and Tunisia all made it to the top 10 list.

The African Exponent Weekly. Every week, get a digest of Top African News and Articles from The African Exponent. Although it has surrendered the first and second positions respectively to Egypt and Morocco, South Africa continues to be a strategic destination for investors coming into the continent. Interestingly, Nigeria made a comeback into the top 10 this year. Experts believe recovering oil prices, and improved access to foreign currency is responsible for success.



To create the list, RMB made use parameters related to Market Size, Market Growth and Operating Environment Quotient to score the African countries.

The improvement in Egypt’s business environment facilitated through government programs, and a steady increase in investment from the private sector had enhanced growth and assisted in repositioning Egypt on the global investment map. South Africa fell to third on the 2020 ranking due to its constrained economic growth, but it remains Africa’s bastion of a well-developed financial and capital market.

The report pointed out that South Africa also ranked highly on other financial market depth measures, such as private credit as a percentage of gross domestic product (GDP).

The high private credit score demonstrates that consumers have access to a broader range of financial instruments relative to other African countries. Another country worthy of note is Rwanda, which came in fifth place. According to the World Bank’s operating environment scoring, the country has more than doubled the efficiency of its business environment in less than a decade.

Here are the best countries to invest in Africa 2020:

1. EGYPT
Market size (US$bn PPP): 1,391.7
Market growth %pa: 5.9
Operating environment (1 = poor | 10 = good): 4.5

2. MOROCCO
Market size (US$bn PPP): 330.4
Market growth %pa: 4.1
Operating environment (1 = poor | 10 = good): 5.8

3. SOUTH AFRICA
Market size (US$bn PPP): 813.1
Market growth (%pa): 1.7
Operating environment (1 = poor | 10 = good): 5.5



4. KENYA
Market size (US$bn PPP): 191
Market growth %pa: 6.0
Operating environment (1 = poor | 10 = good): 5.1

5. RWANDA
Market size (US$bn PPP): 30.1
Market growth %pa: 7.1
Operating environment (1 = poor | 10 = good): 6.6

6. GHANA
Market size (US$bn PPP): 211.1
Market growth %pa: 5.4
Operating environment (1 = poor | 10 = good): 4.8

7. COTE’D IVOIRE
Market size (US$bn PPP): 117
Market growth %pa: 6.9
Operating environment (1 = poor | 10 = good): 4.9

8. NIGERIA
Market size (US$bn PPP): 1,214.8
Market growth %pa: 2.5
Operating environment (1 = poor | 10 = good): 3.9

9. ETHIOPIA
Market size (US$bn PPP): 240.7
Market growth (%pa): 7.2
Operating environment (1 = poor | 10 = good): 3.7

10. TUNISIA
Market size (US$bn PPP): 150.8
Market growth (%pa): 3.6
Operating environment (1 = poor | 10 = good): 5.3

Source: African Exponent

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