International Investors Choose South Africa, Nigeria and Kenya as Top 3 in 2011

Africa Business Communities, a fast growing network of entrepreneurs and professionals, just published a survey stating that international investors choose South Africa, Nigeria and Kenya as the best African countries on the continent for investment in 2011. All signs pointing out that entrepreneurship is, once more, the way to a greater Africa!

 

‘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.’ If you had one doubt about the benefit of investing on the African soil, this should definitely rub your fears out.

‘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 setback 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:

1. South Africa
2. Nigeria
3. Kenya
4. Ghana
5. Angola
6. Tanzania
7. Rwanda
8. Botswana
9. Uganda
10. 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 neighboring giant Nigeria is key and Accra is an attractive commercial center to conduct business from with West Africa.’’

A very interesting survey, analyzed and explained in details by Linda Larbie, which shows, once again, how investors can find on the African soil, safe and sustainable businesses to grow or buy.  Entrepreneurs, the future is in your hands.

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