Best African Countries to Invest In

While some African countries are not ideal spots for investment, most countries in Africa have made significant steps towards building strong economies. The continent is becoming an investment hub for local and international investors. Growing economies and political stability has given rise to investment opportunities. If you wish to invest in Africa, the following are some of the best countries you can invest in.

Egypt

Egypt remains to be the top investment hub for local and international investors in Africa. It has one of the largest markets and most diversified economies. Its market growth stands at 5.9% per annum. With a population of almost 100 million, there is greater potential for its market to grow further.

Best Investment Sectors in Egypt

The financial sector is among the best thriving sectors in Egypt. They include insurance, mortgage and capital markets. There is an increase in the number of people investing in the capital markets. Also, mining is the other best performing sector you can invest in. Egypt is rich in iron ores and radioactive materials like uranium, leading to the establishment of industries.

The agricultural sector is the other best sector that is attracting investors. Agricultural activities do well along the River Nile delta. People cultivate cash crops like cotton that has also led to the establishment of industries. You can also cultivate other cash crops like sugarcane and fruits that grow throughout the year.

South Africa

South Africa has established its economy after a period of economic and political turmoil. The country has the best foreign and direct investments making it a gateway to Africa by foreign investors. Due to its strong capital markets, developed infrastructure, and financial services, it has become one of the leading investment hubs. It has an annual market growth of 1.7%.

Best Investment Sectors in South Africa

The fastest-growing sector in South Africa is communication and IT. There is an increased demand for information and with the installation of fiber cables, the sector will grow further. This is the best sector to invest in South Africa through innovation in entertainment and communication.

Agriculture is the second leading sector that employs more than 8.5 million people directly. You can invest in agro-processing. With vast arable land and favorable weather, there are many farming opportunities. Adequate raw materials and labour translate to low overhead costs for companies.

Mining is also a great sector to invest in, considering that South Africa is among the largest gold and platinum producers. The mining sector is not fully exploited, creating opportunities for more investors. With high technical and production expertise in South Africa, industries can easily start mining.

Morocco

Morocco has grown immensely due to its ties with the Middle East, promoting the Arabian trade. The country has grown immensely after rejoining the African Union and becoming a member of the Economic Community of West African States (ECOWAS). The country has a market size of 330.4, with annual market growth of 1.7%.

Best Investment Sectors in Morocco

Manufacturing is the best performing investment sector in Morocco, being the biggest beneficiary of the Foreign Direct Investments from the European Nations. Morocco is the leading African country in FDI, especially due to the ease of doing business.

Some of the government incentives include the provision of telecommunication costs at 35% below the market price for Moroccan employees and grants of up to US$7,000 to Moroccan employees.

Kenya

Kenya is a favorite spot by many foreign and local investors. The Kenya economy has benefited from urbanization, East African Community trade and investment in infrastructure. With its import ports, standard gauge railway, oil pipeline and roads, its economy has grown over time. Kenya has a 5.6% annual market growth.

Best Investment Sectors in Kenya

Agriculture is the leading sector to invest in Kenya. The agricultural sector contributes 25 percent of the Kenyan GDP, while agriculture exports constitute of 76.5% of the Kenyan GDP. Many people are directly and indirectly employed through farming, both cash crops and food crops. Major cash crops are horticultural products.

Manufacturing is the leading best sector to invest in. there is a high demand or manufactured goods locally and from the EAC countries. The establishment of Special Economic Zones and industrial parks will help foster the growth of manufacturing industries.

Tourism is the biggest contributor of foreign exchange income in Kenya. Through the government creating an enabling environment, tourist attraction sites like caves, beaches and wildlife create investors’ opportunities. There has been the establishment of hotels and restaurants where tourists spend their nights.

Rwanda

Rwanda has improved its business environment, making it the second-best in Africa. The Rwandan government has invested a lot in domestic industries leading to an inverse in Foreign Domestic Investments. Even with small market size of 30.1, the country has experienced a 7.1% annual market growth.

Best Investment Sectors in Rwanda

Among the leading sectors to invest in Rwanda include education, health and financial services. People are thirst for education. You can invest in private school institutions like basic and college institutions.

The financial sector is also a great investment option with a wide range of focus like microfinance, cooperatives, stock exchange, insurance and banks. With the long-term intention to increase savings and credit to 30% of the country’s GDP, the financial sector is a great investment opportunity.

The government of Rwanda has revised investment laws to allow more investors. For instance, there has been a creation of a tax holiday of up to 7 years for investors intending to invest over USD 50,000,000. There is also an exemption of customs tax for products traded within the Export Processing Zones for registered investors.

Ghana

Ghana has managed to grow its economies primarily through mining activities. Although the business operating environment has deteriorated, Ghana remains a more comfortable place to do business. The country has many industries concentrated on gas and oil, ensuring the stability of its economies. The country has a market size of 211.1 and an annual market growth rate of 5.4%.

Best Investment Sectors in Ghana

The mining sector employs thousands of Ghanaians and it is a profitable sector to invest in. Among other sectors, you can invest in include financial services and telecommunications. Almost every adult Ghanaian has a mobile phone creating a large market for telecommunication investors.

Mobile phones also promote financial startups through mobile money transfers. The establishment of banks and other financial institutions has been increasing with many ATMs reducing the number of people queuing in banking halls. Mobile money transfers are also easing the congestion in banking halls.

Ivory Coast

Ivory Coast has experienced business growth due to its stable political environment and government support for businesses. The country has a developed infrastructure; transport and industries that are financed through foreign investment. The country has a market size of 211.1, with annual market growth of 6.9%.

Best Investment Sectors in Ivory Coast

The Government of Ivory Coast aims at increasing food security, making agriculture one of the best investment sectors. The agricultural sector employs over 70% of people directly. Agriculture contributes between 28 and 35 percent of the country’s GDP and it is the world’s leading exporter of cocoa.

The ICT sector is also a great sector for investment. The government has boosted network connectivity through the establishment of telecommunication services. The mobile market has been boosted by the many internet service providers like MTN, Telecom and Orange.

The energy sector provides great potential for investors. Cote d’Ivoire exports electricity and petrol to countries like Benin, Ghana, Mali, Togo and Burkina Faso. There are hydroelectric firms that create opportunities for other firms to grow.

Nigeria

Nigeria has a robust economy from its rich resources that attract Foreign Domestic Investments (FDI). It has improved macroeconomics due to stability in oil prices and the production of goods, the country. Since 2017 when the liquidity of the country subsided, the prices of commodities have improved. Nigeria has a market size of 1,214.8, with annual market growth of 2.5%.

Best Investment Sectors in Nigeria

Nigeria has a large population that creates a demand for land and housing. Investing in real estate in Nigeria is a lucrative venture. You can invest in residential and commercial buildings. You need huge startup capital, but you are sure of good returns.

Agriculture is also thriving well in Nigeria, especially due to favorable climatic conditions. You can start farming or livestock rearing for commercial use.

Ethiopia

Ethiopia has seen economic growth since the reign of Prime Minister Abiy Ahmed. The high population in Ethiopia makes it a good place due to the large market size of 240.7. There is a high demand for goods and services making Ethiopia one of the fastest-growing economies in Africa. However, there is a limited foreign investment due to prohibitions on foreign ownerships that slows the growth of its market. Ethiopia has an annual market growth rate of 7.2%.

Best Investment Sectors in Ethiopia

There are six sectors you can invest in Ethiopia. Among them are the transport, industry, agriculture, energy and mining sectors. The Ethiopian government is improving all these sectors through the use of innovation and technology. The industrial and agricultural sectors are the leading sectors that have more opportunities for investors.

Final Word

The business environment, political stability, investment incentives and availability of markets are key factors that influence the ease of doing business in any country. Investing in the right country is an easy way to start a profitable business. The above list of countries are an investment and economic hubs where you comfortably invest in Africa.