According to the recent Africa Investment Index (AII) 2018 by Quantum Global, Morocco is the best destination for investment in Africa.
The AII has ranked Morocco as the top investment destination because of its solid economic growth, increase in foreign direct investment, strategic geographic positioning, social capital factors, external debt levels, and a favourable business environment.
“In spite of the improvements to oil production and prices, African economies are turning their attention towards diversification to stimulate industrial development, and to attract investments in non-oil strategic sectors. Morocco has been consistent in attracting an inward flow of foreign capital, specifically in banking, tourism and energy sectors and through the development of industry,” Prof Mthuli Ncube, Managing Director Quantum Global Research Lab said.
| Rank | Top 10 (best to worst) | Bottom 10 (worst to best) |
| 1 | Morocco | Central African Republic |
| 2 | Egypt | Liberia |
| 3 | Algeria | Somalia |
| 4 | Botswana | Eritrea |
| 5 | Cote d’Ivoire | Equatorial Guinea |
| 6 | South Africa | Gambia |
| 7 | Ethiopia | Sierra Leone |
| 8 | Zambia | Guinea |
| 9 | Kenya | Sao Tome and Principe |
| 10 | Senegal | Zimbabwe |
Recent data from the Moroccan Exchange Control indicates that the country attracted $2.57 billion of foreign direct investment (FDI) in 2017, up from 12 percent in 2016. Globally, Morocco is being recognised as the top emerging market for foreign investment. Some of the sectors attracting overseas investments are energy, tourism, ICT, and infrastructure.
The top five investment destinations received $12.8 billion in FDI in 2016. Cote d’Ivoire ranks fifth thanks to its fast-growing economy. The country also performs comparatively well in liquidity and risk factors like exchange rate risk, current account ratio, and real interest rate.
Algeria’s rank is attributed to enhanced risk profile, strong liquidity, demographics and social capital record, and favourable business environment. Botswana comes fourth having been the top investment destination in the first edition. Its ranking is attributed to a good score in risk factors and a good business environment.
“Continued FDI inflows will continue to drive the much-needed capital to develop Africa’s primary sectors to meet the demands of the continent’s rapidly growing middle-class, and into manufacturing sectors to create more jobs, enhance economic growth and support structural transformation,” Prof Ncube noted.
Countries that have improved in the past three-year AII rankings are Rwanda, Comoros, South Sudan, Chad, Swaziland, Angola, Seychelles, and Sierra Leone.
