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Are African States Able to Attract Foreign Investment?

Kearney, a global management consulting firm, has released its highly anticipated ‘2023 Foreign Direct Investment Confidence Index’ (FDICI), which provides a unique perspective on which countries are most attractive to investors. The report also reveals emerging market trends, including those in Africa, with a focus on countries such as Egypt, Morocco, Ghana, and South Africa. Despite facing domestic challenges, South Africa continues to foster an environment conducive to investment, as the most advanced and broad-based economy in sub-Saharan Africa with relatively stable institutions and rule of law. Additionally, Morocco has recently implemented a range of economic reforms, making it more attractive to foreign investors. Egypt has also made strides to improve its investment climate, such as introducing a new investment law aimed at improving transparency and predictability for investors. However, Ghana was the only African country to make the bottom five among the emerging market rankings, indicating a need for further efforts to attract foreign investment.