Ethiopia, which was ranked as the 21st attractive investment destination in Africa in the 2017 index (for FY 2016), jumped 14 places and become the 7th best attractive investment destination in the continent, according in the African Investment Index 2018.
ZUG, Switzerland (Semonegna)–Ethiopia is the seventh most attractive economy for investments in Africa, according to the latest African Investment Index 2018 (for FY 2017) by Switzerland-based private equity, investment management, and research firm Quantum Global Group. The report was published on 26 March 2018.
Ethiopia, which is the eighth-largest economy in Africa by GDP according to 2016 IMF data (with USD 73 billion), was on the 21st position in the 2017 African Investment Index. Kenya is the other only East African country to appear in the top-ten rank, taking the 9th place. Morocco emerged as the most attractive investment destination in the continent whereas Central African Republic ranked at the bottom as the least attractive investment destination in Africa.
According to the report, Ethiopia tops all countries in the continent on the growth factor, followed by Algeria, Mozambique, Tanzania and Ivory Coast. For the past five years, Ethiopia was able to sustain an average GDP growth rate of 8.4%, fueled by substantial public infrastructure investment and reforms that strengthened the country’s growth foundations. Domestic investment reached an estimated 40% of the country’s GDP.
In the past four years, African Investment Index ranked Ethiopia on 15th (for FYs 2014 and 2015), 21st for FY 2016 and 7th for FY 2017.
● You can find the full report on Quantum Global Group website.
* The Africa Investment Index (AII), developed by Quantum Global Research Lab, is aimed at providing investors in Africa, a guide to which countries and markets are most attractive for investment in the short to medium term. The AII is a multidimensional barometer based on six clusters of factors namely, Growth factors, Liquidity factors, Risk factors, Business environment factors, Demographics, and Social Capital factors.