Zim among worst investment destinations

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.”

Comments (1)

It is the worst I hve seen. I am just an upstart business but to break into the market is a problem. This gvt says its pushing to help SMEs but it appears the SMEs they speak of are just vendors who are siphoning USD to neoghbouring countries in exchange of goods like second hand clothes, washing powders and other perishables.I am into ICT and also registered with SPB but whenever gvt insitutions flight tenders they look at big corporates that is why they speak of you providing 5 000 dollar bonds or non refundable $280 paid to SPB and most of the time you lose out to the big guns with $5000 dollar bonds because they also can pass the envlope under the desk. So what do you do, you try outside the country and you see you can win some tenders without conditions. My branch in Botswana and Zambia is doing well and I am thinking of relocating there because here without connections you cannot break in. A gvt institution tender is flighted just for procedure when they already have a supplier they have approved and the rest are for siphoning the hadworked $280 dollars. I have proof of what I have done well in the industry but there is no way I can spend money on a done deal. So those who can grease hands win and not many investors want that so we opt out.

vembuya - 24 April 2017

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