JOHANNESBURG - The where to Invest in Africa 2018 report released on Monday by Rand Merchant Bank (RMB) showed that South Africa has fallen from first place for the first time since the inception of the report, ceding its place to Egypt which is now Africa’s most attractive investment destination.
However, the continents other powerhouse Nigeria moved outside the top 10 investment destinations on the continent for the first time, with RMB attributing this to the country’s short-term investment appeal having been eroded by recessionary conditions.
RMB said Egypt displaced South Africa largely because of its superior economic activity score and sluggish growth rates in South Africa, which have deteriorated markedly over the past seven years.
Celeste Fauconnier, an analyst at RMB Africa, on Monday said that some countries have been more nimble and effective than others in managing shortfalls.
“Over the past three years, some African governments have had to implement deep and painful budget cuts, announce multiple currency devaluations and adopt hawkish monetary policy stances - all as a result of a significant drop in traditional revenues,” Fauconnier said. Earlier this month, both South Africa and Nigeria moved out of recession after improved second-quarter gross domestic product (GDP) data.