The current report by the RAND Merchant Bank on Best Destinations for investment in West Africa shows that only six countries in West Africa are favorable destinations for investors. According to the report the six West African Countries that made it to the top 25 are Ghana, Ivory Coast, Nigeria, Senegal Burkina Faso and Benin.
Within the West African region, Ghana is rated the best investment destination for potential investors. However, it occupies the 5thposition in Africa. Nigeria moved downward from its 6th position to a distant place of 13th position according to the latest ranking.
The report cited the major cause of the drastic drop in Nigeria’s position to the current economic recession ravaging its economy. Nigeria has always been in the top 10 destinations for investors looking to invest in Africa, however, due to the recessionary harsh conditions, the appeal to invest in Africa’s largest economy has been lost. Nonetheless, in the midst of its current challenges, Nigeria according to its 2016 FDI inflow still makes the West Africa giant the hottest destination for long term investment in Africa.
Ivory Coast fell from its previous 8th position to 10thposition while Senegal gained one spot to rise from its previous 17thto 16th position on the investment attractiveness matrix. Burkina Faso had a significant rise in its current ranking moving from 22nd to 18thposition, similarly Benin Republic gained two spot climbing to the 25thspot.
|Wood Market in Ghana (Photo Credit:landscapes.org)
According to the Rand Merchant Bank Investment attractiveness index, the most favorable and investors friendly destination in Africa is Egypt who currently occupies the number one position on the current RMB ranking. Countries such as Botswana and Mauritius who frequently maintain the top ten spots were conspicuously missing in the latest ranking. However, the top six West African Countries are ranked as follows:
- Ghana = 4th Position
- Ivory Coast = 10th Position
- Nigeria = 13th Position
- Senegal =15th Position
- Burkina Faso = 18th Position
- Benin = 25th Position
The RMB uses two basic parameter and indicators in computing their ranking for best investment destinations in Africa. These parameters are said to be reviewed and accepted by external investors in order for a valid decision to be made. Indicators such as economic growth, economic freedom, corruption perception, global competitiveness, favorable and conducive operating environment among others are said to be used as criteria for rating the individual countries in Africa.