The year 2023 is full of anticipation and high hopes, especially as many countries are trying to recover from the full brunt of the COVID-19 pandemic.In the last couple of years, African nations have witnessed first-hand the advantages of foreign direct investments in their countries. To this end, many nations are struggling hard to create a better enabling business environment that will attract investors.
The conscious efforts of Ghana in 2022 to create a suitable business environment for Information Technology saw the relocation of the African Twitter and Google headquarters to the country in 2022.
Taking the initiative, coupled with the need for increased internal revenue generation and job creation, African leaders have buckled up to attract investors to their countries in 2023.
Below, we have highlighted 5 African countries that have done enough to attract the most investors in the New Year. Check them out!
It is not only one of the largest economies in Africa; it has been at the top of the list of African countries with the largest Foreign Direct Investment (FDI) in recent years. The country recorded as much as a 52% increase in greenfield projects within one year. During and after the COVID-19 pandemic, Egypt alone accounted for more than 10% of FDI in Africa.
According to the International Monetary Fund (IMF), Egypt has already laid the foundation and is on track to attract the highest FDI in Africa until 2025. It further projects that the FDI in the country will rise to $11.7bn in the financial year 2022–23 before reaching $16.5bn in the financial year 2024–25.
Within the last decade, Botswana has recorded numerous successes on many fronts, and experts say it will continue to make strides in its economy.
Since October 2021, when the country was removed from the Financial Action Task Force’s (FATF) ‘gray list,’ the country was able to diversify its economy and attract more direct and indirect foreign investments.
The country has also recorded success in utilizing energy resources and aims to become a net exporter of electricity by 2027. In 2023, Botswana will be one of the African countries that will attract the most foreign investments, especially in the area of energy and power.
The economy of Morocco has been experiencing a steady increase since 2016 and was able to reach the $119.7bn mark in 2019 before the COVID-19 pandemic.
While other countries shrank in the face of the COVID-19 pandemic, Morocco used the pandemic as an opportunity to balance its economy and recorded one of the most successful vaccination campaigns globally.
Also, Agricultural gains in the country are expected to continue, with Morocco’s Minister of Agriculture, Mohamed Sadiki, stating during an interview: “Citrus production is expected to increase by 14% and olive production by 21% compared with the previous season.”
In 2023, Morocco will attract a high amount of investment.
Somehow, Ghana has been able to pick itself up and position itself strategically to attract foreign direct investment within the last couple of years. The country was cited as the largest growing economy in 2019 and has experienced steady growth since 2016, recording as much as $74 billion in foreign investments in 2020 alone.
The country is reaping the gains from diversifying from oil production and has greatly invested in technology. This led to the opening of Google’s first AI lab in the country and other foreign investments. Experts say the growth will continue in 2023, and Ghana will continue to attract investors in the New Year.
Within the last couple of years, Uganda has emerged as a haven for African investments. Experts believe that this is a result of the fact that the country has begun to take advantage of its strategic location, which is in the heart of Sub-Saharan Africa within the East African region and lies astride the equator.
The country currently has a law that limits all foreign investment capital in the country to a minimum of $100 000 regardless of the sector in the economy. However, the country’s priority areas for investment are; Commercial Agriculture and Agro-processing, Solid Minerals, Oil and Gas, Pharmaceuticals, and Tourism.
One thing that contributed immensely to the investment viability of the country was its resistance to global inflation in recent times. Also, the country has achieved a lot in terms of policies, including removing restrictions for foreign investors to open a bank account in Uganda. However, the government imposes a 15% withholding tax on interest and dividends.
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