Rwanda Among Top 10 Investments Destinations in Africa

Rwanda is one of the 10 most attractive nations in Africa for investors, according to the 2016 Ernst & Young (EY) Africa Attractiveness Index. The country was ranked ninth and the second most preferred investment destination in East Africa after Kenya, which came fourth on the continental ranking and first in the region. Tanzania and Uganda were ranked 12th and 13th, respectively, on the continent.

The report, released last week, evaluates progress made in governance, diversification, infrastructures, business enablement, human development, as well as resilience to current macro-economic challenges.

According to the survey, South Africa is the most attractive nation for investors followed by Morocco, Egypt, Kenya, Mauritius, Ghana, Botswana, Tunisia and Rwanda. Cote d’Ivoire comes tenth.

Though Rwanda, Botswana, and Mauritius are small markets, they have good performances in terms of business enablement, social development and economic management, the survey indicated.

Kenya has a relatively strong economic growth outlook, and good performances in terms of infrastructures and business enablement, it added.

On macroeconomic resilience, Tanzania and Uganda rank very high, the report says. However, they are “relative under-performers on other longer-term focused dimensions.”

South Africa, which is the continent’s most developed nation, was buoyed by good performances in governance, diversification, infrastructures, business enablement and human development.

“From an investment perspective, the next few years may be challenging, this is not because the opportunities are no longer there, but rather because these opportunities are likely to be more uneven than they have been. It is now more important than ever for organisations and investors, who sometimes place great emphasis on shorter term economic growth trends, to adopt a granular, fact-based approach to assessing investment and business opportunities for the long-term,” said Sugan Palanee, the Africa markets leader at EY.