Large global investors are optimistic for the African continent. However, not all countries are housed in the same chain. Ethiopia, Nigeria, Morocco, Ghana and Senegal are acclaimed by investors, according to a study by Havas for the period 2016-2020.
Despite the slowdown of its economies due to the fall in oil and raw material prices (iron, gold, etc.), Africa continues to attract large global investors who, despite the current difficult context, are mainly their desire to maintain, or even strengthen, the level of their investments on the continent. This is what the latest study by Havas International and the Choiseul Institute reveals: “Financing African growth by 2020: perception of international investors”.
According to the study, 75% of investors surveyed are optimistic about the continent’s economic outlook in 2016. Better still, in the medium and long term, 91% of investors surveyed are optimistic about the continent’s economic outlook in 2020.
If investors are optimistic for the continent, this is explained by a combination of factors, underlines the study including: improving the business climate, the structuring of free trade areas, the development of intra-African trade relations , demographic dynamism, the emergence of the middle classes, etc.
If investors consider Africa as one of the most attractive regions, thanks to its great potential and prospects, the fact remains that not all the countries of the continent are housed in the same boat.
For the 2016-2020 period, five countries are acclaimed by the 55 international investors active in Africa surveyed, including: Bank of America, BNP Paribas, Edmond de Rothschild, Proprco, Qatar national Bank, Rothschild & Cie, Standard bank, Goldman Sachs, HSBC, Merril Lynch, Attijariwafa bank, etc.
For these investors, the 5 most promising African countries to invest in 2016 are Ethiopia, Nigeria, Morocco, Ghana and Senegal.
I- Ethiopia
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Ethiopia is the country most cited by investors. The country that has posted the highest growth rates on the continent for a decade is acclaimed by 52% of the investors surveyed. The country has achieved average annual growth exceeding 8% over the past 10 years. In addition, with more than 90 million inhabitants, the country is the second most populous country on the continent.
Likewise, thanks to investments in infrastructure, the country has improved its competitiveness thanks to the improvement of its business environment and has implemented an ambitious industrialization policy which is starting to bear fruit by attracting more and more investors who face a loss of competitiveness due to rising wage costs.
The country which invests massively in infrastructures (energy, railways, roads, etc.) aims, thanks to the influx of foreign investments, to become a benchmark industrial center. Thanks to its strengths and the importance of its market, the standard of living of which the population is improving with a growing middle class, Ethiopia is naturally acclaimed by investors. 52% of the investors surveyed cited the country.
II- Nigeria
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Despite the multidimensional crisis that Nigeria is going through (Boko Haram, fall in oil prices, instability in the Delta region rich in hydrocarbons, etc.), Nigeria, ranked first African economy by international financial institutions, continues to be favored of the investors surveyed. It must be said that there is no shortage of potential for this African power.
Besides the fact that it is the second African oil producer, the country attracts by its internal market with one with more than 175 million inhabitants and the launching of many infrastructure projects (rail, roads, refineries, etc. ), agro-industry, construction, agriculture, etc., aimed at reducing the country’s heavy dependence on hydrocarbons.
Nigeria is thus acclaimed with 44% of the investors surveyed interested in investments in this country.
III- Morocco
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Morocco is in third position in the intentions of investors. The country is cited by 23% of the panel of investors surveyed and gains 2 ranks compared to the previous 2015 study. In addition to the resilience of the Moroccan tourism sector in a difficult regional environment, the kingdom benefits from a favorable context of the fall oil prices on which it is highly dependent.
In addition, the maturity and diversification of the Moroccan economy driven by a manufacturing industry geared towards export and the proliferation of free trade agreements (EU, USA, Turkey, Arab countries, etc.) opening up Moroccan products to more than 1.1 billion consumers are undeniable assets to attract investors. To this must be added the country’s commitment to sustainable development with significant investments in solar and wind power aimed at reducing dependence on fossil fuels and the upcoming organization of COP22.
Morocco benefits from a generally favorable environment, geographic proximity to Europe, quality infrastructure and its ambition to become a hub for the continent do not leave investors indifferent.
IV- Ghana
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Ghana is in fourth place with 21% of the intentions of the investors surveyed. The country benefits from its political stability but also from the launch of major regional projects (roads, ports, etc.), construction, agriculture, etc.
The country also counts on its middle class, its agriculture and the development prospects of several sectors: construction and infrastructure, energy, mining, oil and gas, etc. The country aims to become a commercial interface between Côte d’Ivoire and Nigeria, the two powers in West Africa, said the Havas study.
V-Senegal
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According to the study, the country benefits from the favorable effects of the gradual transformation of its economy thanks to the development of the financial sectors, telecommunications and new technologies and the diversification of the economy previously based mainly on agriculture (peanuts, cereals, etc.), the food industry and tourism.
In addition to political stability, from its Emerging Senegal Plan (PSE), the recent discoveries of oil and gas, with their expected impacts on the Senegalese economy, are certainly not unrelated to investors’ intentions. Indeed, the country collected 19% of the votes of investors in the framework of this survey.
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