Egypt remains the top investment destination in Africa, according to Rand Merchant Bank (RMB).This is due to the country’s ongoing economic growth and structural reform programme.“While the Egyptian economy was hit hard by the pandemic, it was also one of the first countries to bounce back to a path of growth given the swift measures it introduced – and it entered the crisis on a strong footing,” reads an RMB report. The reduction of Egypt’s twin deficit in recent years has also made it possible for the country’s foreign exchange reserves to be replenished, which means it is in a far better position to cope with extreme global shocks.RMB is also bullish about Morocco where the economy is continuing to benefit from political stability. It also dealt with Covid-19 particularly well, immediately establishing a special fund to combat the pandemic. The fund represented 27% of its GDP, with two-thirds of the funds provided by private sources and the rest by the government.Despite its ongoing challenges and slow economic growth, the South African economy remains one of the largest in Africa on a public-private partnership (PPP) basis, according to RMB. “The depth and variety of South Africa’s resources provide a strong backbone for economic growth over the next few years. South Africa is also a strong manufacturing and retail base that will continue to support southern African regional economies with goods and services,” reads the report.No discussion about the positive outlook for Africa is complete without including Rwanda. This East African country is continuing to go from strength to strength thanks to efforts to improve the operating environment. A lot has also been done to boost the construction and energy sectors, while its business climate has become one of the most attractive on the continent.According to RMB, Botswana remains one of Africa’s most stable investment destinations. There’s continued growth potential in the country – particularly now that the $2-billion Cut-9 project to extend the life of the Jwaneng mine (one of the highest-value mines in the world) has begun. This expansion project will extend the life of the mine to 2035, with 80% plant ore feed expected from 2029.
