Tanzania has featured in a list of top ten most attractive for investment flowing destination into African continent, emerging the only state from East Africa bloc.
According to Africa Investment Index 2016, Tanzania was slotted on position eight ahead of Namibia and Burkina Faso, but below Algeria (on position 7), Cote d’Ivoire (6) and Zambia (5).
The Index was produced by Quantum Global’s independent research arm, Quantum Global Research Lab indicating Botswana as the most attractive destination, Morocco second, Egypt third, and South Africa on fourth position. Botswana scores highly based on a range of factors that include improved credit rating, current account ratio, import covers and ease of doing business.
Quantum Global Research Lab Head, Prof Mthuli Ncube, said Botswana strategic location, skilled workforce and a politically stable environment attract the attention of international investors leading to a significant influx of FDI.
“Despite external challenges and the fall in oil prices, many of the African nations demonstrate an increased willingness to achieve sustainable growth,” Prof Ncube said in release issued yesterday. The head said the states willingness to grow based on diversifying their economies and introducing favourable policies to attract inward investments.
According to the report, the top five African investment destinations attracted an overall FDI of 13.6 billion US dollars. Prof Ncube said “with a population of over one billion people and rapidly growing middle class, Africa clearly offers significant opportunities.”
He said most FDIs went to invest in the continent’s non-commodities sectors such as financial services, construction and manufacturing amongst others. Other East African economies, Kenya, Uganda, Rwanda, Burundi and Sudan featured neither on top nor bottom tens.
The worst country that attracted less FDI in 2016 was Somalia followed by Eritrea and Central African Republic and South Sudan. Others from worst to best are Sierra Leone, Liberia, Malawi, Equatorial Guinea, Gambia and Madagascar.
The Index looks on increasing solid economic growth, strategic geographic positioning, increased FDI, import cover ratio, significant domestic investment, access money supply and an overall favourable business environment.