As the economy begins to bounce back, investors are on the lookout for exciting opportunities around the globe – and may be heading to some new territory. With a reputation for political instability, many countries in Africa have not seen the type of investment one might expect for the second-fastest growing economy in the world, as investors detour around the continent en route to Asia. Even in the midst of the global economic crisis, growth in Africa continued, bolstered by rich natural resources and a rising consumer class. Several African countries stand out as prime markets for investors.
(As ranked by the World Economic Forum’s Global Competitiveness Report 2012-2013)
1. South Africa
Despite a troubled not-so-ancient history, South Africa has quickly become a model of stability in Africa and an important voice on the world stage. It ranks second in the world for accountability of private institutions and third for financial market development, showing trust in its markets at a time when trust is hard to find. With a rapidly growing tourism industry, a wealth of natural resources, and booming industrial production, South Africa presents an opportunity that would be hard for investors to pass up.
2. Mauritius
Little-known Mauritius offers a strong infrastructure for foreign investors – particularly in the areas of its ports, air transport, and phone communication. Coupled with strong and transparent public institutions, clear property rights, and an efficient government that enjoys an independent judiciary (a rare find on the continent), Mauritius has high standards for investor protection.
3. Rwanda
The Rwandan government’s no-tolerance policy when it comes to corruption makes the country a strong contender for investment. High-functioning institutions and security infrastructure contribute to the package. Additionally, Rwanda is well known for innovation and efficiency, with well-developed financial and labor markets compared to much of the rest of the continent.
4. Morocco
Morocco has actively tried to attract investors with financial incentives and tax exemptions, simplifying procedures to make the process as hassle free as possible. With a large tourism industry and growing real estate market, the country has become an attractive option for investors worldwide.
5. Seychelles
In addition to its ideal geographic location midway between Asia and Europe, a stable government and investor-friendly policies help make Seychelles a prime investment opportunity. Its time zone overlaps working hours with major financial centers across the globe – so no need to schedule those 3 a.m. conference calls!
6. Botswana
Botswana’s thriving domestic financial industries – including banks, insurance companies and a growing stock market – manage to be competitive while still following stringent international standards to combat money laundering and financial crime. This commitment to transparency extends into Botswana’s governance style, which includes low corruption and high political stability.
7. Namibia
Unassuming Namibia, often called Africa’s optimist, offers a peaceful and politically stable environment for those hoping to get a piece of its moderate-but-steady economic growth. An impressive diamond production industry, rich fishing grounds, excellent transportation and communications make it likely Namibia’s growth will continue in coming years.
8. The Gambia
The Gambia’s free market economy is free of foreign exchange controls and offers quick and easy investment approval procedures. It maintains a commitment to protecting intellectual property rights, and even offers incentive packages for investors such as the Special Investment Certificate and Free Zones License.
9. Gabon
Investors looking at Gabon have the freedom to choose from a wide selection of legal business structures, and are not limited by any state restrictions on foreign investment. Large quantities of petroleum, manganese and timber are exported each year, and Gabon encourages nationally diverse sources to take a sizable stake in its industries.
