Morocco is Africa’s leading investment destination in 2017, according to AII

Morocco is the most attractive investment destination in the African continent, according to the «Africa Investment Index 2018» (AII) of Quantum Global's independent research arm, Quantum Global Research Lab, a group of companies in areas of investment management, private equity, active management and research with focus on Africa.

Doing business is «unique» in Morocco, managing director of the Quantum Global Research Lab, Muthuli Ncube, told MAP news agency on Thursday.

«What has propelled Morocco to the top position of the All is mainly the size of its economy, its very favorable business climate and the management of macroeconomic risks that it has made its own,» he stressed.

«In spite of the improvements to oil production and prices, African economies are turning their attention towards diversification to stimulate industrial development, and to attract investments in non-oil strategic sectors. Morocco has been consistent in attracting an inward flow of foreign capital, specifically in banking, tourism and energy sectors and through the development of industry», said Ncube presenting the results of the report.

Morocco and its slow-risk profile

According to the All, Morocco ranks first because of «sustained economic growth, a strategic geographic location, increased foreign direct investment, external debt levels, and social capital-related factors as well as a generally favorable business environment.»

Morocco has attracted steady inflows of foreign capital, particularly in the banking, tourism and energy sectors and through the development of its industry, according to the AII.

The kingdom ranks first in Africa, followed by Egypt 2nd and Algeria 3rd, Botswana 4th and Cote d’Ivoire 5th. The report, released on the 26th of March, ranks the 10 top most attractive economies in the continent. The list includes other countries such as South Africa, Senegal, Liberia and Guinea.

The survey is based on 6 factors that investigate every African country’s growth, liquidity, risk profile, demography, social capital and business environment. Morocco is one of the countries that lead the AII risk factor. Its slow-risk profile has been determined by improvements in the country’s current account ratio, exchange rate risk, external debt and import cover.