The African continent is rich in human and natural resources and has great potential for economic growth. There are many reasons to invest in Africa. The continent is home to a rapidly growing population and an expanding middle class. Additionally, there is a wealth of natural resources and a growing number of countries are adopting more business-friendly policies.
If you’re looking for the best countries to invest in Africa, look no further. In this article, we’ll be discussing the top African countries to invest in, based on recent growth and development.
When it comes to finding the best countries to invest in Africa, there are a few key factors to consider. First and foremost is stability: you want to choose a country that is politically and economically stable, as this will provide the best environment for your investment. Another important factor is growth potential: look for countries with strong economic growth prospects, as this will give your investment the best chance to grow. Finally, don’t forget about risk: all investments come with some degree of risk, so make sure you understand the risks involved before you commit your resources.
10 countries with investment opportunities in Africa
If you’re thinking about investing in Africa, the next question on your mind is probably, “Where is the best place to invest in Africa?”
Here are some of the best countries to invest in Africa, based on the factors identified above:
Egypt is one of the best places in Africa to do business. Though it was one of the African countries hardest hit by the Covid pandemic, it was also one of the first African economies to recover. Mostly because of the government’s quick implementation of economic measures.
Furthermore, Egypt’s nearness to Europe and the Middle East gives it a territorial advantage.
Other opportunities in Egypt that private investors should consider include the fantastic pool of talent, large population, low cost of living, and cheap real estate. A Tier-C passport holder in Egypt can also obtain a second citizenship.
Egypt’s GDP was worth $404.14b in 2021. Furthermore, its economy is expected to grow by 5.20% in 2023.
Morocco is another place to invest in Africa. This African country has a relatively stable political system, which translates into a strong economy. In fact, it is better than any other country in Sub-Saharan Africa.
Morocco’s government has close relations with Europe, but it also sees opportunities for diplomatic ties with other African countries. The country has rejoined the African Union and is working to join the Economic Community of West African States (ECOWAS).
According to GDP figures, Morocco’s economy grew by 7% last year. The agricultural sector is primarily responsible for the increase. However, the IMF projects Morocco’s economic growth to drop to 0.8% this year.
3. South Africa
South Africa is most likely the most popular African investment destination. Because of its developed market, it has received a substantial share of direct investment in foreign stocks on the African continent. Its robust economic policies, mature capital market, and accessibility to financing services also contribute to this success. Add to that are the existing land infrastructure and ports, which facilitate the transportation of goods and services.
South Africa’s businesses are distinguished by a thriving manufacturing industry and retail market. As a result, retail remains a fantastic business opportunity for growth. Correspondingly, South African businesses remain upbeat despite a lower GDP forecast of 1.3 to 1.8% for the next two years.
This small country in central Africa is often overlooked as an investment destination. But it actually offers a lot of potential for growth. Rwanda has made great strides in recent years in terms of economic development and political stability. And it’s become one of the safest countries in Africa to visit or live in.
Rwanda has established itself as an African emerging market, attracting private equity firms, venture capitalists, multinational corporations, institutional investors, and even local business leaders.
While this African market has limited room for expansion, foreign direct investment continues to flow in due to the favorable business environment. Furthermore, Rwanda’s attractiveness to African stocks is enhanced by good governance and effective economic policies.
Rwanda’s domestic market also serves as a springboard for investors looking to expand into other east African markets. Construction and energy are two trade sectors to keep an eye out for.
The African Development Bank predicted Rwanda’s GDP to grow by 6.9% this year, following double-digit growth in the previous quarters.
This landlocked country in southern Africa is another good option for investors. It has a strong economy and is relatively politically stable. Plus, it’s home to some of the world’s most amazing wildlife experiences.
Botswana, Africa’s least indebted country, has large foreign exchange reserves thanks to the Pula Fund. Pula Fund is Botswana’s long-term investment portfolio created by reinvesting a portion of diamond export revenues. By financing the bulk of the budget deficit caused by the pandemic, this sovereign fund helped reduce debt exposure.
Botswana is appealing to high-net-worth individuals interested in investing in the region due to its low level of corruption and ease of doing business. It is also a country with a high English-speaking population.
Food processing, textiles, and mining are the leading industries for large multinationals and investors to consider.
Botswana’s GDP growth prediction for this year is 4.20%.
If you want to invest in Africa, another country to consider is Ghana. Ghana’s economy has undergone significant changes in recent years due to its reliance on commodities. This is a two-edged sword: it provided a solid foundation prior to the pandemic but was weakened when demand slowed. Moving forward, Ghana is poised for substantial growth as economies recover.
Gold, cocoa, and oil are three industries to keep an eye on. The World Bank predicts a 5% increase in GDP this year.
This island nation off the coast of Africa is one of the most stable and prosperous countries on the continent. It has a strong economy and a well-educated workforce. And, it’s also a great place to live, with beautiful beaches and an excellent standard of living.
Mauritius is best known for two things: its low tax environment and its sugar products.
Though agriculture is critical, investors will be pleased to learn that Mauritius is actively diversifying its economy. Financial services, textiles, exports, and tourism are being developed to reduce the country’s reliance on sugar production. As a result, an institutional investor may want to look at the country’s financial sector for opportunities, particularly cross-border investment activities and banking services.
Mauritius’ projected GDP growth rate is a low but steady 1.5%.
8. Côte d’Ivoire
Côte d’Ivoire, one of Africa’s underappreciated emerging markets, has experienced a decade of robust and stable economic growth.
The global pandemic slowed its growth, but the economic outlook remains positive. Local demand for consumer goods, services, and exports drives the country’s recovery.
The government’s emphasis on infrastructure projects, combined with a pretty stable political and business sector, all contribute to the region’s economic development.
Infrastructure investment from public and private investment funds continues to pique the interest of venture capitalists and private equity firms.
Agriculture, construction, energy, manufacturing, and transportation, will also drive foreign direct investment in Côte d’Ivoire.
The economy of Côte d’Ivoire is expected to grow by 6.5% this year and another 6.4% by 2023.
Kenya is an excellent place to invest if you want to test the waters of the African market.
It is a country with lots of potential for investors. It has a growing economy, thanks largely to its thriving tourism industry. Kenya is also becoming increasingly politically stable, making it an attractive destination for businesses and individuals alike.
This East African country serves as the continent’s economic, commercial, financial, and logistical hub. They are primarily driven by young entrepreneurs in technology, specifically the FinTech sector. Furthermore, startups with a social impact are popular with foreign investors.
Multinational corporations looking to offshore their operations or expand in Africa may want to consider this African country.
Kenya’s economic growth is expected to be 5.5% this year and 5.2% next year.
Tanzania’s tenth place is primarily due to the country’s changing business policies and the country’s economic slowdown. Government spending on power, telecoms, and finance, on the other hand, helps keep the economy afloat.
However, as one of Africa’s developing markets, institutional investors are optimistic about African investments. If you want to invest in Tanzania, the mining, tourism, and telecom sectors remain attractive.
Tanzania’s economic growth is projected to be 4.8% this year and 5.2% next year.
Before you invest in Africa
Now that we’ve identified the ten best places to invest in Africa, it’s up to you to ensure due diligence. However, African investment opportunities, like any other in the world, should not be pursued blindly.
There are numerous factors to consider. To begin, never invest unless you are familiar with the economic environment of the region. We strongly advise you to consult with research experts who are well-versed in adequate market research and have prior experience in the African market.
Survey54 facilitates this decision for businesses looking to enter the African market as well as existing players looking to expand. We ensure that your decisions are supported by data and assist you in navigating the African market with ease.
Contact our team of research experts to get started.