According to a recent report by Biznews, Egypt is Africa's strongest and most investible economy.
The magazine’s study was run by Celeste Fauconnier, the editor of the “Where to Invest in Africa” annual ranking, where Egypt topped all 53 African countries.
“Last year’s publication was the first year that Egypt actually overtook South Africa and now, in this year’s edition, we can see that Egypt has held that position,” said Fauconnier.
“In terms of the methodology that we use, we look specifically at economic activities like anticipated growth over the next few years, the current market size, and also look at potential risk factors,” she continued.
“It’s also about how easy it is to do business in these environments. If you take the economic activity out, that is where South Africa has been lacking, especially when looking at growth-rates that are expected to be below 2% in the next 5 years. Compare that to an economy like Egypt, which is going to grow above 4% to 5% in the next 5 years and its purchasing power as the largest market in Africa,” said Fauconnier.
“So, from an economic activity perspective, Egypt is the clear winner. If we look at the operating environment, South Africa is still far beyond where Egypt is. It's still one of the most liquid markets – still the springboard into Africa – but unfortunately South Africa's strength in that area not did not help them reclaim the number one spot this year,” she added.
“A few years back, Nigeria made headlines as the largest market in Africa. That was after they rebased their GDP. But consequently, Egypt has now overtaken Nigeria, so, in fact, South Africa is now the third-largest market behind Nigeria,” she concluded.
Biznews is a remote company with home offices in South Africa and the United Kingdom, according to their website.
© Copyright Al-Ahram Publishing House