Exporters should not underestimate the opportunities in Zambia, Ghana and surprisingly, Rwanda, as these three countries are standing out, thanks to ongoing improvements via reforms and accelerated growth. “Anyone wanting to expand into Africa as well as those already active on the continent should be keeping a very close eye on Rwanda as this country is doing exceptionally well,” said Celeste Fauconnier, an African analyst with Rand Merchant Bank. “It is not just the fastest growing economy in Africa, but the fastest in the world. And yes there are reservations, especially around the President, but there is no denying the reforms they have put in place.” Addressing the Exporters’ Club Western Cape recently, she said major steps had been taken to diversify the economy while at the same time investments in infrastructure were under way and efforts to improve the operating environment were paying off. “You can open a business in Rwanda within 24 hours online. It is a country that is worth watching.” She said an RMB report on where to invest in Africa had highlighted Rwanda as one of the countries that would see sustained growth over the next couple of years. “They have taken cognisance of who their competitors are and what they need to do to attract foreign investment. Another country that is standing out is Zambia, which has already doubled its economy and is expected to continue growing into the foreseeable future.” She said the country had also learnt some valuable lessons during the 2008/9 recession when the price of copper fell and was diversifying its economy while, like Rwanda, there was a major focus on infrastructure improvements. “Another country that one has to highlight is Ghana as it already has a diversified economy. Until recently it was focused on cocoa and gold, but with the finding of oil and gas big things are being predicted for the country.” In the process of reforming their regulatory environment, Fauconnier said the Ghanaian economy had stabilised following a significant increase in growth of around 15% a few years ago. “The start of oil and gas production contributed to this. It is now stabilising but we expect to see growth still above 7%. She said other economies that were considered to be extremely attractive investment options were Kenya, Ethiopia, Tanzania and Uganda in the east, while Tunisia and Morocco were the most notable in the north. “Libya also stands out from a growth perspective, representing the recovery from the civil war, but caution is advised due to the political instability.” Countries that have been identified as less than attractive in the report include Benin, Guinea and Gabon. “One of the countries that has worsened in its ratings is Namibia while countries such as Angola and Zimbabwe have not scored very highly,” said Fauconnier. “It is important to note that we are not saying there are not opportunities there, but rather in comparison to other countries on the continent they have not rated well.” She said Angola remained on the cautionary list because of its difficult operating environment and its reputation of being one of the most corrupt countries in the world, while Zimbabwe’s political dictatorship spoke for itself. CAPTION Celeste Fauconnier ... ‘You can open a business in Rwanda within 24 hours online.’
