Mozambique ranked 22nd most attractive African country for investors – EY

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Mozambique ranked 22nd most attractive African country for investors – EY

12:29 CAT | 04 May 2017

Waterworld (File photo) / A View of Maputo

Mozambique is the 22nd most attractive African country for investors and second among Portuguese-speaking countries, behind Cape Verde, which ranked 18th in this year’s edition of EY consultancy’s Foreign Investment Attractiveness Programme.

The list is led by Morocco, Kenya and South Africa. With Cape Verde improving six places compared to last year’s ranking and Mozambique dropping two, the list does not include any other Portuguese-speaking country in the top 25 places.

“Investor sentiment about Africa should remain less buoyant in the coming years, which has less to do with Africa’s fundamental conditions than with a world characterised by increased geopolitical uncertainty and increased risk aversion,” EY Africa executive director Ajen Sita commented.

“Investors who are not present in Africa remain positive about long-term investment attractiveness in the continent but are cautious and attentive to the difficulties,” he added.

The EY study is based on an analysis of 46 African countries and covers six aspects that are considered fundamental for investors choosing locations for their investment: macroeconomic resilience, market size, ease of business, infrastructure and logistics investment, economic diversification and governance and human development, with the first two accounting for 20 percent and the remainder 15 percent each.

The largest foreign investor in the continent in terms of number of projects continues to be the United States, with 91 new investments, followed by France with 81, and China with 66 projects, representing a 106 percent increase over the previous year.

In terms of the amount of investment, China is by far the heaviest investor, having channelled US$36.1 billion last year, more than a third of the total invested in the continent, and almost three times as much as the second largest investor, the United Arab Emirates, which spent US$11 billion on 35 projects on the continent.

Source: Lusa