Source: Zim among worst investment destinations – DailyNews Live
BUSINESS WRITER 22 April 2017
HARARE – Zimbabwe has been ranked among the worst economies for
investments flowing into the Africa.
The southern African country was ranked 37 out of 54 countries by the
latest Africa Investment Index 2016 by Quantum Global’s independent
research arm, Quantum Global Research Lab published on Wednesday.
Quantum Global is an international group of companies active in the areas
of private equity investments, investment management as well as
macroeconomic research and econometric modelling.
The Index was constructed from macroeconomic and financial indicators and
the World Bank Group’s Ease of Doing Business Indicators, and also
averages the country’s macroeconomic and financial indicators rankings on
the six different factors.
Zimbabwe received the number 37 ranking on the Index because it scored
badly on the growth factor of GDP, ease of doing business in the country
and significant population.
Botswana was named the most attractive economy in Africa, scoring highly
based on a range of factors that include improved credit rating, current
account ratio, import cover and ease of doing business.
Morocco was ranked second on the Index based on its increasing solid
economic growth, strategic geographic positioning, increased foreign
direct investment, import cover ratio, and an overall favourable business
environment.
Egypt was ranked third due to an increased foreign direct investment and
real interest rates, and a growing urban population, while Zambia was the
fifth country on the list due to its significant domestic investment and
access money supply.
According to the report, the top five African investment destinations
attracted an overall foreign direct investment of $13,6 billion. Head of
Quantum Global Research Lab, Mthuli Ncube, said Africa offered significant
opportunities to invest in non-commodities sectors such as financial
services, construction and manufacturing amongst others.
Ncube also pointed to structural reforms and greater private sector
involvement as crucial factors to unlocking Africa’s true potential.
“Despite considerable external challenges and the fall in oil prices, many
of the African nations are demonstrating an increased willingness to
achieve sustainable growth by diversifying their economies and introducing
favourable policies to attract inward investments,” Ncube said.
“Botswana is a case in example – its strategic location, skilled workforce
and a politically stable environment have attracted the attention of
international investors leading to a significant influx of FDI.”
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