This archive report was first published on 22 September 2019.
Released in 2020, the Where to Invest in Africa report by South Africa's Rand Merchant Bank ranked Kenya as East Africa's top investment destination, surpassing Egypt, Morocco, and South Africa.
This achievement marks an improvement from the previous year's ranking, where Kenya held the fifth position in Africa. Rwanda secured the fifth spot this year, while Ethiopia ranked ninth. Tanzania, however, dropped out of the top 10 listings, having been ranked seventh the previous year.
Kenya's position is attributed to its expected growth rate of above 5%, driven by favourable weather conditions. The country's economy also benefits from diversity, sustained expansion in consumer demand, urbanization, East African Community integration, structural reforms, and investments in infrastructure, including an oil pipeline, railways, ports, and power generation.
Egypt maintained its position as Africa's most favourable investment destination for the third consecutive year, thanks to its enormous market and sophisticated business sector. The country has also seen improvements in its business environment, driven by government programs and increased private sector investments.
South Africa, Ethiopia, and Tanzania have shown a decline in rankings, primarily due to a deterioration in the ease of doing business, particularly in South Africa, which is experiencing a cyclical downturn.
The report identifies key sectors that can spur Africa's growth, including mineral resources, retail, finance, ICT, manufacturing, and construction. Financial services play a crucial role in securing Africa's future, and manufacturing is expected to take centre stage as countries focus on turning raw materials into manufactured goods to boost exports and reduce reliance on imports.
Financial services play a critical role in securing Africa's future. Without sustainable funding and commercial credit, project development in key areas such as infrastructure, healthcare, and energy projects remain concepts rather than reality. Nema Ramkhelawan-Bhana, co-author Where to Invest in Africa 2020 Report
