News
Investors pick South Africa,
Nigeria and Kenya as top 3 in 2011
International investors choose South Africa, Nigeria and Kenya
as the best African countries on the continent for investment in
2011. A survey conducted by Africa Business Panel among 800
business professionals involved with Africa shows that these 3
countries were earmarked as the continent’s favourites when it
comes to international investment. Ghana, Angola, Tanzania,
Rwanda, Botswana, Uganda and Mozambique are the runners up and
complete the top ten countries for investment out of 53
economies on the African continent.
Virtually all African economies show promising year-on-year
growth. This is attracting the attention of the international
investor community who increasingly see Africa as ‘the last
frontier’ for attractive growth opportunities. Research and
numerous survey results among the international investor
community consistently indicate that investors expect over half
of the ten fastest growing economies in the world in 2011 to be
African.
The Africa Business Confidence Index has published a
month-on-month business confidence index since January 2011. The
index results for Africa based on surveys of 800 business
professionals from more than 30 countries on the continent
consistently show growth. Calculations are based on the purchase
managers index methodology used globally. The outcome of the
business confidence index for the African continent is
consistent with the trust of the international investor
community. The manufacturing business confidence index for May
is 53.8 and for non-manufacturing 57.1 for the same month. Any
number over 50 indicated growth.
It is no coincidence that the top-10 countries selected by the
international investor community in 2011 are all sub-Saharan.
Northern Africa has suffered a set back in confidence from
investors owing to the political turmoil which started at the
beginning of the year.
Another interesting outcome with regard to the most attractive
African economies to invest in is the fact that they are among
the largest on the continent and - with the exception of Rwanda
– non-Francophone.
The top-10 African countries selected by the international
investor community in 2011 in order of preference: South
Africa, Nigeria, Kenya, Ghana, Angola, Tanzania, Rwanda,
Botswana, Uganda and Mozambique.
Lourens van Niekerk, Senior Manager at Standard Bank, South
Africa: 'Angola is still growing its economy at a massive speed
and with the oil price appreciation it is bound to continue. A
distinct lack of certain products and services is growing
instead of declining and makes Angola a frontier market of the
first order. You should also watch stock exchange developments,
construction, green sector and professional services. As far as
South Africa is concerned it needs to iron out its strategy
after joining the existing BRIC countries, but its inclusion
will surely result in increased trade. Using South Africa as a
springboard into the rest of Africa is an attractive option for
investors and I expect to see government initiatives to
encourage this. Ghana's economic and political stability
persists as commercial oil production comes on stream for the
first time. Trade with its neighbouring giant Nigeria is key and
Accra is an attractive commercial centre to conduct business
from with West Africa.'
Ogo Ibok, CEO at Skill Enhancement Centre (SENCE), Nigeria:
'Nigeria has a huge population with a huge potential for growth,
despite the infrastructural challenges, the opportunities for
investors cannot be over estimated. Ghana is an emerging market,
with a stable government. The country is attracting a lot of
attention and with the recent oil activities there are vast
opportunities for investors. Rwanda is now one of Africa’s major
success stories and is growing in leaps and bounds. The
government has shown it is serious and determined about
rebuilding its economy after the tragic events that took place
in the past. Who does not want to be associated with success?'
Nicholas Sowden, Business Development Manager at ToughStuff,
Kenya: 'The Kenyan economy is growing at a blazing rate and has
done so for the last 3 years. We expect this to continue into
next year. Nairobi’s as the regional hub for East Africa is
becoming more important with the integration of the East Africa
Community. For this reason dozens of companies are moving their
regional and continental head quarters to Nairobi supported by
the ease of travel and a pleasant lifestyle. This means that
industries such as Construction, real estate and services to
corporations are growing steadily and will continue to do so.
Additionally, Kenya is taking advantage of Southern Sudan's
likelihood of joining the East African Community by creating a
port in Lamu.
This is further boost Kenya's regional importance over the next
several decades. Anyone interested in mobile and ICT technology
will be drawn to Kenya. Its leading when comes to software
developers, computer science colleges, incubators like i-Hub and
others. Finally, the phenomenal success of the mobile payment
system Mpesa will attract others who are interested in the
opportunities offered by a country where a majority of the
people now use their mobile phones for monetary transactions. In
terms of entrepreneurship, Nairobi is and will continue to be
one of the best environments for innovation in Africa. 3 great
schools are turning out qualified engineers, computer scientists
and business students. These graduates are getting jobs with
successful companies and learning quickly. For the first time
we're seeing a bounty of talented young professionals in Africa
taking risks by starting their own businesses or returning home
from abroad to start businesses.'
|
