South Africa is seen as the most attractive investment destination in Africa – and Africa itself ranks third in the world as the place to invest.
This is according to Africa investor (Ai) and Interbrand-Sampson’s first African Brand Investment Index, which provides evidence about how countries are perceived as investment destinations by the global investment community.
The first of its kind, the research outlines what investors think about Africa, and what Africa’s countries should be aware of when jostling for investment.
“African governments and business leaders alike need to realise the way in which they are promoting their countries is absolutely crucial for attracting and retaining both domestic and foreign investment, and the Brand Investment Survey and Index aims to highlight just this,” says Hubert Danso, vice-chairman and MD of Africa investor.
In view of the forthcoming World Economic Forum (WEF), the research finds that the top three perceptional investment attributes are political stability, economic growth prospects and currency stability.
According to the poll, Africa was considered the third most attractive investment destination after southeast Asia and India.
South Africa emerged the clear winner as the preferred investment destination, and Somalia was ranked to have the worst investment brand on the continent.
With 60% of those surveyed saying they rely on professional advisors as sources of information when exploring investment opportunities, many also felt that African governments are not doing enough to promote the region as an investment destination.
The issues highlighted around Africa’s investment brand have much to do with political stability and regulatory practice.
The Index also revealed that the majority of respondents feel that Africa will improve its investment brand profile over the next 12 months.
“Africa has a great opportunity to harness the goodwill form the investment community to position brand Africa as a globally competitive investment destination. The continent has made great strides implementing a raft of regulatory reforms to ensure its business friendly and it’s up to governments to commission adequate resources to communicate effective in today’s competitive and complex global investment information environment,” says Danso.