Uganda and Tanzania have been rated the most attractive investment destinations in East Africa with Burundi and South Sudan rated worst.
According to the Africa Index the two countries scored highly in domestic investment, doing business and economic growth.
In EAC, Kenya came fourth due to credit rating and economic growth followed by Rwanda scoring in import cover, doing business and exchange rate. Burundi is fifth while South Sudan trails in the region.
According to the report, the top five African investment destinations attracted an overall Foreign Direct Investment of $13.6 billion. On the continent, Botswana tops the list followed by Morocco. Egypt comes in third place with South Africa taking the fourth position and Zambia taking fifth place.
In a press statement Prof Mthuli Ncube, Head of Quantum Global Research Lab stated that many of the African nations are demonstrating an increased willingness to achieve sustainable growth by diversifying their economies and introducing favourable policies to attract inward investments despite external challenges and the fall in oil prices.
Mthuli however says structural reforms and greater private sector involvement are crucial to unlocking Africa’s true potential.