Kearney, a global management consulting firm, has released its much-anticipated 2023 Foreign Direct Investment Confidence Index (FDICI), which offers a unique perspective on which countries are most attractive to investors.
The report also highlights trends in emerging markets, including Africa, with a focus on countries like Egypt, Morocco, Ghana and South Africa.
According to the FDICI, South Africa remains an attractive investment destination thanks to its stable governance and robust legal framework.
Kearney notes that the country’s business environment offers unique opportunities and growth potential, making it a key investment hub in the emerging markets landscape.
Despite national challenges, as the largest and most advanced economy in sub-Saharan Africa, with relatively stable institutions and the rule of law, South Africa continues to promote a favorable environment for investment. In addition, Morocco has recently implemented a series of economic reforms that make it more attractive to foreign investors.
Also, read; Black High Schooler Earns ‘Incredible’ $9m in Scholarship Offers
Egypt has also made progress in improving its investment climate, for example by issuing a new investment law to improve transparency and predictability for investors.
However, Ghana was the only African country to rank fifth in the emerging market rankings, suggesting that more effort needs to be made to attract foreign investment.
The FDICI also includes a unique emerging markets ranking that highlights China, India, the United Arab Emirates, Qatar, Thailand and Saudi Arabia as the top six most attractive emerging markets for investors over the next three years. Latin America and Southeast Asia are also strong performers, with Brazil, Mexico, Argentina, Malaysia, Indonesia, the Philippines and Vietnam leading the way.
The dominance of developed markets at the top of the index underscores the challenge emerging markets face in attracting investor interest as they compete with more established markets for attention and capital.
Kearney advises emerging market companies to focus on their unique advantages and growth potential and leverage them in the emerging market landscape to meet this challenge.
