#Zimbabwe the worst place to invest, investors money converted to worthless bond note currency

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.”

Source :

dailynews

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