There was a time when Africa was considered to be a club of dictators. People were reluctant to invest in this great continent. Fortunately this perception is changing. Today many African nations are attracting investments from businessman all over the world.
A report by multinational professional services network PricewaterhouseCoopers ranked 20 African “Cities of Opportunity” based on various factors like human capital, infrastructure, demographics, society and economics. As per the report, here are the top 10 African cities for investors.
10) Kampala, Uganda
Kampala is the capital of Uganda. It is also the largest city of Uganda. Strong diversity and international clout helped Kampala reach the top 10, but limited infrastructure may deter investors.
9) Addis Ababa, Ethiopia
Foreign investment is still in its infancy in Addis Ababa. Currently the city is experiencing a middle class explosion. GDP per capita and literacy rates are areas of major concern in this African city.
8) Lagos, Nigeria
Strong financial industry helped this Nigerian mega-city reach the top 10. High housing and business occupancy costs may work against Lagos.
7) Nairobi, Kenya
Nairobi is the capital of Kenya and is second only to Cairo when it comes to international clout. This beautiful city has a strong financial services industry. However, there is scope for improvement in the areas like healthcare, education and infrastructure.
6) Accra, Ghana
It is easy to do business in Accra. GDP diversity is another plus point of this city, but healthcare and infrastructure are areas of concern.
5) Algiers, Algeria
Algiers is the capital of Algeria. It is also an important economic, commercial and financial center in the nation. Algiers produces many graduates and is well-known for its high-class health system. Crime levels in Algiers are one of the lowest in the African continent. Stagnation of middle class numbers is a problem in this African city.
4) Casablanca, Morocco
GDP diversity and infrastructure helped Casablanca gain fourth position in the list. It is Morocco’s chief port and an important financial center. Population growth and poor diversity may be deterrents for investors to invest in Casablanca.
3) Johannesburg, South Africa
Johannesburg is the largest city in South Africa. It is one of the 50 largest urban agglomerations and one of the leading financial centers in the world. High crime, overall population growth and stagnating middle-class of Johannesburg are some areas that the leaders of South Africa need to work on.
2) Tunis, Tunisia
Tunis is the capital of Tunisia. It is also the largest city in Tunisia. This North African city is well-known for its excellent health system. High number of graduate enrollments helped the city gain the second position in this list. When it comes to human capital, Tunis is a winner.
1) Cairo, Egypt
Cairo is the capital of Egypt and the largest city in the Middle East. This city is right at the top of the list due to its large scale, middle class and international clout. However, current political turmoil may deter investors.
These cities are attracting investors from all over the world. They are the engines of Africa’s economic growth.