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Africa Investment Index 2018, produced by Quantum Global Research Lab, today released its list of top investment destinations in Africa and Nigeria, the most populous African nation and the continent’s biggest economy, doesn’t rank among the first 10.

According to index, Morocco ranks first among the top 10 investment destinations in Africa. This rating is based on the increasing solid economic growth, increased foreign direct investment (FDI), strategic geographical positioning, external debt levels, social capital factors, and a conducive business environment, according to Quantum Global.

According to recent data by the Moroccan Exchange Control, Morocco attracted nearly $2.57 billion of foreign direct investment (FDI) in 2017, up by 12 percent compared to 2016. The country is being recognised as one of the best emerging markets for overseas investment.

The AII is constructed from macroeconomic and financial indicators and the World Bank Group’s Ease of Doing Business Indicators (DBI). To produce an index score that captures medium-term changing aspects, individual country’s ranking is scaled relative to a benchmark or reference value (i.e. the past 3-year rolling average ranking).

Ranked behind Morocco are Egypt, Algeria, Botswana, Cote d'Ivoire, South Africa, Ethiopia, Zambia, Kenya and Senegal in that order.

“In spite of the improvements to oil production and prices, African economies are turning attention towards diversification to stimulate industrial development and to attract investments in non-oil strategic sectors,” said Mthuli Ncube, Managing Director, Quantum Global Research Lab. “Morocco has been consistent in attracting an inward flow of foreign capital, specifically in banking, tourism and energy sector and through the development of industry.”

According to AII’s data, the top five African Investment destination attracted an overall FDI of $12.8 billion in 2016. Cote D’Ivoire, tagged as the fastest growing economy in Africa, ranks fifth and scores well in liquidity, and risk factors such as real interest rate, exchange rate risk and current account ratio. Algeria and Botswana rank third and fourth respectively, also scoring well in risk factors as well as business environment.

Prof. Ncube further commented: “Continued FDI inflows will continue to drive the much-needed capital to develop Africa primary sectors to meet the demands of the continent’s rapidly growing middle class, and into the manufacturing sectors to create more jobs, enhance economic growth and support structural transformation.”

Countries such as Swaziland, Angola, Rwanda, Chad, Comoros, Seychelles, South Sudan and Sierra Leone all registered strong upward movements as shown in AII’s three-year rankings.