Although Africa is considered to be the third world country, it has surprisingly become a subject of great interest to the investors from all over the world. The modern look on Africa can amaze you.
What’s so special about Africa?
This is quite a complicated question and could possibly even become someone’s topic for a researchpaper, but we’ll try to figure things out.
For several years, economists have been saying that miracles happen in Africa – in the poorest and most underdeveloped continent on the planet. The huge investments of Asian businesses in African agriculture and raw materials have led to a consumer boom: Africans are getting richer, buying cars and washing machines, and just about to start living like Indian or Chinese people.
However, a lot of experts do not believe in miracles: Africa will not follow the path of Asia, rapid industrialization and prosperity aren’t expected. This is just a temporary phenomenon of blowing a new bubble in the consumer market, which will burst and a rapid growth will be replaced by a recession.
Nevertheless, this continent keeps changing and improving the different spheres that make a good ground for further investors’ actions in different regions.
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Why people choose Africa for investment
It’s hard to say what is more difficult: answering the question of “how to begin your research paper” or “how to decide on the criteria for the top African countries for investment”. Definitely, this is way harder than finding a trustworthy plagiarism checker for your paper works online. Indeed, there are so many factors that can influence the choice of a country and the right business branch for investment.
The country’s economy is currently at the stage of its development. The agricultural sector, machinery, real estate, and construction, energy, metallurgy, services, etc. are developing very actively. This means that Africa is good for entrepreneurs because there are still many areas of activity that are not very developed. And this means that there is a promising opportunity to occupy a niche and achieve the set goals within a very short amount of time to get the prospects of phenomenal growth.
Don’t get too excited, though. You have to understand that Africa is still inferior in its development compared to all European countries. African countries are characterized by a high level of corruption, a large number of taxes, difficult mechanisms for obtaining business licenses and lengthy procedures for the registration of a legal entity.
In spite of a number of drawbacks, Africa still has a chance to be a successful place for investors. As we mentioned before, there are a lot of factors influencing the ratings of countries in general.
All places are assessed by 11 indicators, including the level of corruption, the development of technologies, property rights, the tax policy of the state, the protection of investors, the development of the insurance market, freedom of speech and business. As we can already tell, none of the African countries will be in the world’s top 10, but thanks to the rapid changes in the economy of some of the places like Kenya, they take positions even in the world’s top 100 which is a great achievement.
So, according to the 11 factors we mentioned above, the top African countries for investment are as follows:
1. Egypt
2. South Africa
3. Morocco
4. Ethiopia
5. Ghana
6. Kenya
7. Tanzania
8. Rwanda
9. Tunisia
10. Cote d’Ivoire
We hope this was a useful or at least interesting information for the curious minds. Who knows, maybe one day Africa will become a place of your investment too.
