Morocco holds first position in African investment destination
Doing business is "unique" in Morocco, said Quantum Global Research Lab's CEO, Mthuli Ncube.
Morocco is the most attractive economy for investment in the African continent, according to the Africa Investment Index 2018 Investment Index (AII) of Quantum Global Research Lab, Quantum Global's independent research division.
Doing business is "unique" in Morocco, said Quantum Global Research Lab's CEO, Mthuli Ncube, during the presentation of the IIA on Monday in Abidjan, on the sidelines of the 6th Africa CEO Forum, which is being held on 26 and March 27 in the Ivorian economic capital, as per Telquel.
"What has propelled Morocco to the top position of the IIA is, above all, the size of its economy, its very favourable business climate and the macroeconomic risk management that it has embraced." he quoted. He further added that government policies, which offer good business opportunities in Morocco, have borne fruit in terms of drainage and implementation of investments.
According to the IIA, Morocco ranks first because of "sustained economic growth, a strategic geographic location, increased foreign direct investment, external debt levels, and social capital-related factors and the generally favourable business environment". Morocco has attracted steady inflows of foreign capital, particularly in the banking, tourism and energy sectors, but also through the development of its industry, according to the IIA.
According to Telquel, Ncube praised the "vision" and "leadership" of Morocco who "chose to turn to Africa, with companies like Attijariwafa bank, Saham and many others". He also praised the opening of Morocco on renewable energies with huge plans and projects, like the NOOR solar complex. The IIA notes that "according to recent data from the Moroccan Foreign Exchange Office, Morocco has attracted nearly USD 2.57 billion of foreign direct investment (FDI) in 2017, an increase of 12 percent report to 2016".
The Kingdom, the Quantum Global Index adds, "is recognized as one of the best-emerging markets for investment abroad. International investors are turning to a wide range of sectors, including energy, infrastructure, tourism and ICT."
According to the IIA, Egypt, Algeria, Botswana and Côte d'Ivoire are among the top five investment destinations that together totalled a net FDI of USD 12.8 billion in 2016.
According to Mr Ncube, "Uninterrupted flows of FDI will continue to generate the capital that is so lacking to develop key sectors in Africa and fuel the manufacturing sector to create more jobs, improve economic growth and support structural transformation", Telquel reported.
Angola, Comoros, Rwanda, Swaziland, Chad, and South Sudan have experienced significant growth over the last three years, as shown by the regular rankings of the IIA, as per Telquel.
The IIA is developed from macroeconomic and financial indicators as well as from the World Bank Group's ease of doing business index. This index ranks countries according to the business-friendly nature of the regulatory environment. Quantum Global is an international group of companies active in the fields of private equity, investment management, macroeconomic research and econometric modelling.