IGIHE

Category: Business

  • 9 things you need to have before starting a business

    To help you see the full picture, here are 9 things you need to have before starting a business:

    A Business Plan

    There is no way you can start a business without having a clear business plan that includes your mission, your goals, as well as your objectives and how you are planning on achieving them. This is the most important stage of building a business, if you get this right, the execution part will be much easier to handle. Many aspiring entrepreneurs believe that a business plan should be complex and expressed in sophisticated business jargon. However, that’s not completely true. As long as you define SMART goals to work towards, it should be good enough for a business plan at this stage.

    Clear Role Distribution

    In your business plan, you should include a clear role division in regards to the different functions within your company. Even if it will only be you and a handful of employees in the beginning, everyone should be aware of the specific roles they will play in the company. If you plan on starting solo, professional finance advisors at https://finvisor.com/ believe that you should focus on more sensitive matters like closing business deals and outsource back-office functions to an experienced service provider. This way, you will be able to grow your business without spreading yourself too thin. You should always keep in mind that the novelty of starting your own business will wear off at some point and the reality will hit that you can’t do everything by yourself.

    Enough Funds

    Whether you will be raising capital through a crowdfunding source or applying for a bank loan, make sure you have enough. During the earlier phases of your business operation, you shouldn’t expect to be making profits. Setting up an office, investing in overheads and company assets will eat up your capital. You should make sure you have enough money to keep you covered until you can start generating income. If you are not sure how much capital you will exactly need to raise or borrow, you can consult professional financial advisors. Their fees will not compare to the potential losses that you might have to endure if you decide to roughly guess the amount of money that you will need.

    Thorough Market Research

    It’s not enough to go into business just because you believe you have a “good” product. You need to understand the market and conduct thorough research to comprehend what consumers want and how will you meet their demands. The better you understand your target consumers, the easier will it be for you to customize your marketing efforts and resources in a cost-efficient way. Furthermore, market research will reveal important information about your competitors so that you can identify your unique advantage point to set yourself apart in the market.

    Trusted Suppliers

    It will take you some time before you find the right suppliers who you can trust and rely on. However, if you start your search early enough, you will guarantee a smoother launch for your business. For example, if you are opening up a bakery, you need to make sure you have access to the finest ingredients within your budget. Unless you have a supplier that can fulfill your requests promptly, your business will not have a chance at succeeding. Furthermore, sticking with fewer suppliers means that you will benefit from wholesale discounts which can be useful for you..

    Legal Compliance

    Unless you have enough legal knowledge, you will need to hire an expert to take over your business’ legal matters and ensure you have all the required permits and licensing. As a startup, you won’t be able to withstand an infringement lawsuit, for example. So, you must make everything legal before you can start your business. Your legal advisor will also help you understand the taxing system you are going to follow in regards to your type of business.

    The Right Mindset

    Having a great product and a foolproof business plan only will not guarantee your success. Although important, they have to be backed up by the right mindset. Before starting a business, make sure you have the skills and capabilities of a business owner. You need to be perseverant, patient, and have faith in your vision to be able to run a business.

    An Inspiring Mentor

    Finding a mentor who you can look up to for inspiration and rely on for guidance is an invaluable asset as well. It doesn’t have to be someone in the same industry as yours, only someone who has a knack for business and can offer you the kind of support that you need.

    A Strong Why

    When things go wrong, because they are bound to at some point, your passion for your business is what will keep you going. Make sure you are passionate about it and that you are ready to put the needed time and effort to turn your dreams into a reality. Having a clear answer to why you are working this hard, and skipping Saturday outings with your friends early on will set the tone for your business and improve your chances of success.

    Starting your own business is an exciting journey that you need to properly prepare for. Use the checklist above to help you understand where to start. Surround yourself with the right people who will make the tough road ahead more endurable.

    Also, remember to be practical and have a clear plan. However, don’t forget to have fun and appreciate the fact that you are on the verge of fulfilling your dream of building your own business from the ground up.

    Source: Elcrema

  • Rwandan investors optimistic as CAR opens investment opportunities

    Ntagengerwa revealed this following Rwandan investors visit to CAR aimed at exploring investment opportunities.

    “It has been observed that the country presents investment opportunities. Upon return, they told us that the country imports a large portion of goods. There are two double chances. Rwandans can set up factories in the country or export to the country like Cameroun and France business people do,” he said.

    As he recently received the delegation of 32 investors from Rwanda, CAR president, Faustin-Archange Touadéra, welcomed them to the country and promised support to tap into investment opportunities available in the country.

    Rwanda’s national flight carrier, RwandAir has recently launched flights from Kigali to Bangui, the capital city of CAR expected to facilitate free movement between both countries.

    Rwanda’s national flight carrier, RwandAir has recently launched bi-weekly flights to Bangui, the capital city of CAR.

    In 2019, Rwanda and CAR signed cooperation agreements to promote security, economy and mining activities.

    Rwanda and CAR have been for long enjoying cordial relations whereby Rwanda is helping the country engulfed by wars to restore peace. Rwandan troops have been deployed to CAR peacekeeping mission since 2014. On 20th December 2020, Rwanda deployed more special forces to CAR under existing bilateral cooperation signed in 2019.

    CAR covers a land area of about 620,000 square kilometres and has an estimated population of around 4.7 million. As of 2020, the country is the scene of a civil war, ongoing since 2012.

    The Central African Republic’s economy is based primarily on subsistence agriculture, with important mining and timber industries the main source of export earnings.

    Diamonds are the country’s most profitable export, while agriculture occupies most of its working population.

    Farmers grow cotton, coffee, and tobacco for export and crops for local markets, but economic development is handicapped by the CAR’s landlocked position, limited infrastructure, and the low education of its work-force. Poor government management and political instability have further weakened the CAR’s economic condition.

    The informal sector is important in the CAR, accounting for most economic activity and a large share of the diamond trade.

    CAR has had a turbulent economic history. Since gaining independence in 1960, the economy has endured intermittent periods of economic decline caused in part by poor management.

    The recent opening of flights presented a huge market opportunity for businesspersons as the country heavily depends on imports.

    Bangui , the capital city of Central African Republic.

  • Sijibomi Ogundele (Sujimoto): The amazing story of the Agege Boy that built a $400m company

    No one would have thought that this man, who is currently worth billions, was once a souvenir hawker in France and also did alabaru for his trader mum in Africa’s most populous market, Oke-Arin, where he was nurtured by enterprising Igbo traders, which ignited his passion for business.

    Growing up in the slum of Agege as a little 8-year-old, Sijibomi’s first introduction to entrepreneurship was when he started a bike business popularly called okada business from his little savings.

    Despite the usual African parent’s disapproval, he drew inspiration from his mother’s entrepreneurial spirit and grew his motorcycle riding business from one to 6, a testament to his strong, resolute and resilient business mind.

    A rose that grew from concrete, Mr Ogundele, who is only 39, has built his company, Sujimoto Group, in just 5 years, into a Luxury Construction behemoth, focused on building extraordinary edifices in premium neighbourhoods of Ikoyi and Banana Island.

    With annual revenue of approximately $30 million and many other pending projects, Mr Ogundele believes the Sujimoto group is worth over $400 million.

    His look may be modest but his ambition belies his modesty. After an encounter with the King of Dubai, who pushed his ambitious project, LorenzoBySujimoto, from 15 storey building to a 30-storey building, reminding him that, “To be second is to be last! If people in their 30’s are building 5000 units annually in Asia, 75 units shouldn’t scare you.”

    According to Mr Ogundele, “I believe in Nigeria. My passion comes from my patriotism. I believe that the Nigeria that produced the MKOs, the Dantatas, and the Ojukwus, also has something great in store for me.”

    The lawyer tuned entrepreneur, who is son to a John Holt Manager and a trader mother, never had the opportunity to attend King’s College or other expensive private schools but attended public schools.

    With a dream to revolutionize the Nigerian luxury real estate space and an ambition taller than the Burj Khalifa, one can only wonder how he has steered his company to survive the brutal economic recessions within the last 5 years, growing stronger, bigger and better, to the consternation of the pessimists.

    Sujimoto’s Giuliano project which is 100 per cent covered in travertine stone, fully automated, first project with each unit having its private elevator and an award-winning Zaha Hadid Bathroom for Porscelanosa, set the standard for a luxury terrace in Banana Island, attracting clients like MD of multinationals, billionaires and music entrepreneur, Davido.

    A stone throws from the Giuliano; Sujimoto is building what has been dubbed the tallest residential building in Banana Island, the LucreziaBySujimoto.

    A revolutionary building, never before seen in Nigeria or Africa! The first building with Glass Reinforced Concrete (GRC) façade, Full Home Automation, private IMAX Cinema for the residents, standard crèche, Indoor Virtual Golf with over 2,500 courses worldwide to play on, swimming pool in the sky and other exciting features. Sitting on the 12th floor is the best penthouse in Africa; a project that sets an enviable standard for luxury residential apartments in Nigeria with a sales value worth $46 and a delivery deadline of December 2021.

    Speaking on the Lucrezia, Mr Ogundele made a startling revelation; “We are building the best condominium not only in Nigeria but also in Africa. The Lucrezia Penthouse comes with a private elevator, private cinema, private golf, private gym, and a private pool!

    “The Lucrezia is very special to us because Sujimoto is divesting from residential projects with 80 per cent of our real estate interest into commercial projects.”

    When asked about the company’s plan to accommodate smaller units, Mr Ogundele was very quick to add that the company has a new project that is almost sold out!

    According to him, “Many people have approached us about building smaller and more affordable units with the Sujimoto standard and we have responded with a revolutionary project called the LeonardoBySujimoto.

    “With LeonardoBySujimoto, you can own a Sujimoto apartment without breaking the bank. We have studied the best apartments and what we are creating, beats the best.

    “The affordable luxury project – Leonardo, comes in 2, 3, and 4 bedroom units and it is a great investment offer as the 3 bedrooms which are currently selling for N250 million will go for N450 million once the project is launched later in the year.”

    According to Mr Ogundele, the present pricing still beats the best apartments in Bourdillon and Eko Atlantic. He also noted that the current price offer will expire by the end of the month.

    He said “the same passion with which we redefined luxury living in Nigeria, is the same passion we are bringing into the Nigerian hospitality and commercial space.

    “We have toured some of the best hotels in the world such as the Address Hotel, Downtown Dubai, the Baccarat Hotel in New York City, and the Dorchester Hotel in London.

    “Sujimoto is building the S-Hotel, African hospitality with a four season services. We are building a hotel that is customer addictive, where putting the customer first becomes our priority, from janitor to general managers.”

    “Three fundamental qualities separate the S Hotel from others: Design, Price, and Service. The plan is to get rid of mediocre experience in the hospitality industry, building one luxury hotel at a time.

    “The focus, therefore, is to build one luxury hotel in the state capital city of every African country, starting from the six geopolitical zones of Nigeria.

    “The plan is before 2030, we would have built over 100 luxury hotels with 16,000 rooms, worth $1.9 billion in the portfolio, a move which will bring the company’s overall worth to over $5 billion in 10 years,” he added.

    In addition to the company’s expansion plan, Mr Ogundele made it known that Sujimoto is building a world-class plaza, first of its kind, in Ikoyi and Abuja, with a 2021 and 2022 projection for completion.

    This 6-in-1 plaza by Sujimoto is a contemporary one-stop-shop retail and hospitality centre, featuring innovative state-of-the-art equipment, rooftop lounge, and bar, premium restaurants, world-class gym, retail shops other premium features.

    Upon completion, each project should be valued at approximately N47 Billion, with a combined rental income of about N11 billion annually.

    According to Mr Ogundele, “By 2030, we hope to have completed 61 different malls and plazas in Nigeria and across major African cities, a portfolio worth about $3 billion.”

    Despite the huge effect of the COVID-19 on businesses and economies, where banks have put a halt to every construction project, Sujimoto just raised N3.5 billion for the Lucrezia which is sold out with just 2 units left!

    According to Mr. Ogundele Sujimoto, “At Sujimoto, we do not see a recession because for us crises are opportunities disguised as problems!

    “We have developed a highly viable and profitable strategy and found an opportunity for savvy investors to invest N5 billion into Sujimoto and get N10 billion back in 3 years.

    “This is debt and not equity, and it is guaranteed. Treasury bills and other money market instruments will give you a 5 – 10 per cent ROI on your investment, but this is 100 per cent ROI and it is guaranteed!

    “This investment is NOT for everyone, it is ONLY for the vital few, who can identify opportunities when they see one.

    One of the reasons why Sujimoto can stand out and guarantee good price and quality is the strength of the company’s procurement capacity and global reach,” Mr Ogundele explained.

    He stressed that “We don’t use third parties when it comes to projects; we speak directly to the manufacturers because we want to guarantee two fundamental things – prudent spending and assurance of quality. With offices in Dubai, Gwanzo, and New York City and numerous ambitious projects, one wonders what Sujimoto Group will be worth in 10 years to come.

    According to Mr. Ogundele; “Our biggest motivation is our critics because, without them, we couldn’t have come this far. There’s nothing we have today, that we got on a platter of gold. We worked two times harder, 3 times more, just to prove that without a rich aunty or uncle, you can get to your destiny”.

    Speaking on some of the challenges he has had to contend with in business, Mr. Ogundele recalled the event of 2016 and 2017 where he had conceived and developed the biggest project in Nigeria, over $90 million to build the tallest residential building in Sub-Saharan Africa – the LorenzoBySujimoto.

    “After all the investment in time, money, and passion, the recession hit badly, and investors pulled out. The economy was so bad that I had to refund hundreds of millions to our off-takers. Amid the chaos, like the phoenix that rises from the ashes, the Giuliano project was born!

    “A project of terrace houses in Africa’s richest neighbourhood – Banana Island. And 20 months after, the record-breaking Giuliano has metamorphosed from a proof-of-concept to a proof-of-product! fully sold-out six months before completion.”

    Many have opined that the young and dynamic Motomatician might be eyeing a political position, but according to Mr. Ogundele, “the business of politics is bigger than the politics of business. We are focused on business but we shall support the government. To us, the government is like a beautiful woman, marry her only when she is an asset, not a liability.”

    When asked if he was married, the single and eligible bachelor, who insisted he was married without a wife, claimed that his wife is young and very jealous, she’s Sujimoto.

    Source:Business Post

  • RDB to recognize outstanding investors on Friday

    The awards giving ceremony to be held for the sixth time in a row are celebrated a bid to recognize the private sector’s essential role in growing Rwanda’s economy according to RDB.

    Both local and foreign investors in Rwanda were encouraged to participate in this year’s awards.

    The awards will see entrepreneurs be rewarded in different categories including the Investor of the Year, Exporter of the Year, Innovator of the Year, Woman Entrepreneur of the Year, Young Entrepreneur of the Year, Made in Rwanda Enterprise of the Year and the SME of the Year.

    Launching the awards in November last year, RDB Chief Executive Officer, Clare Akamanzi, said; “Exports in Rwanda increased by 30% last year and GDP grew by over seven percent. This is clear evidence that the Rwandan private sector has been thriving. The ‘Made in Rwanda’ initiative, which aims not only to increase local employment but also reduce the country’s trade deficit, is possible because local businesses are playing their role and with the RDB Business Excellence Awards we are recognizing this fact”.

    Akamanzi said reducing the trade deficit is very much possible owing to the will the Rwanda’s private sector members have.

    Africa Improved Foods (AIF) was awarded as the Investor of the Year in the 2017 RDB Business Excellence Awards.
    Outstanding investors who won RDB Business Awards 2017

  • Rwanda tea price higher than Kenya’s on Mombasa auction

    Figures by Kenya’s Tea Directorate indicate that a kilogram of Rwanda tea was sold on Ksh287 (over Rwf2,500) on average while Kenya’s tea was sold Ksh262 (Rwf2,300) last year according to Business Daily.

    However, it was reported, the price for Rwandan tea reduced compared to previous year down from Sh323 with Kenya’s tea also declining from Sh300.

    According to brokers, Rwanda produces the best tea in the region which attracts good prices on market.

    One of the tea brokers said: “Rwandan tea normally fetches good price at the auction because of good quality that results from best agronomical practices that they have invested in.”

    “To Rwanda, quality is regarded as more important than quantities they bring at auctions,” he added.

    Currently, seven countries sell their tea through the weekly Mombasa auction with aim to sell it on the international market. The auction is held under management of East African Tea Trade Association.

    Rwanda tea growing and production dates back in 1961. It is currently grown on 26,897 ha area in 12 districts. Last year statistics indicate that 42,840 farmers were involved in tea production in Rwanda.

    Rwanda’s tea production increased from 14,500 tons in 2000 up to 27,824 tons in 2017/2018 fiscal year.

    Data from the National Agricultural Exports Development Board (NAEB) indicates that Rwanda exported 25,128 tons which yielded $74,5 million in 2016/17 which increased up to 27,824 tons fetching $88 million in 2017-2018 fiscal year.

    As of 2018, there were 16 tea processing factories with 60% women involved.

    In May last year, Rwanda tea scooped 11 of 12 awards given at the Africa Tea Convention that was held in Nairobi.
    Rwandan women are more involved in tea production sector than men by 10 percent

  • Consumers urged on clean green cooking

    When he officially launched the second edition of the Renewable Energy for Sustainable Growth Forum and Rwanda Investment Prospectus, Minister of Infrastructure, Ambassador Claver Gatete said that Rwanda aimed at reducing the use of biomass as source of fuel because it is detrimental to the environment.

    This will be replaced by the use of biofuels and biogas.

    Minister Gatete said that the share of renewables in meeting global energy demand is expected to grow by one-fifth in the next five years to reach 12.4% in 2023 and providing almost 30% of power demand up from 24% in 2017.

    Regarding gas prices that are still high and a challenge to those who do not have means, Gatete said that increasing the number of consumers would reduce gas prices. He encouraged Rwandans to use modern cooking facilities such as Rondereza and biogas.

    Energy Private Developers Executive Director, Dr. Ivan Twagirishema said that it isn’t easy for ordinary people who usually use firewood for cooking to adopt gas.

    “I think gas use is still nascent, but in the future, it will soon be known to you, in the City of Kigali and in other cities such as Rubavu, Rusizi, Huye and elsewhere, people will start using gas,” he said.

    Innocent Niyibizi, the director of Isoko Foundation Ltd also called “Caniryo” told IGIHE that, in order to reduce reliance on biofuels, they make briquettes made from banana peels and ash, that can cook without emiting smoke and can burn for up to three hours.

  • Rwanda, World Bank sign a $20 million agreement to support public funds management for service delivery

    Rwanda, World Bank sign a $20 million agreement to support public funds management for service delivery

    The signing of the loan agreement was officiated by the Minister of Finance and Economic Planning, Dr. Uzziel Ndagijimana and the World Bank Country Director of Rwanda, Yasser El-Gammal.

    The loan is to be paid back in 38 years with six years of grace period and at the interest rate of 0.75%.

    The Rwanda Public Financial Management Reforms Project (PFMRP) is expected to increase the professionalization of public officials and support the Ministry of Finance and Economic Planning in the expansion of the Financial Management Information System (FMIS) coverage and Electronic Government Procurement System (e-GP) as well as provide the IT backbone to all-decision-making processes in the country.

    Besides MINECOFIN, the loan will benefit other PFM core institutions including the Rwanda Public Procurement Authority (RPPA) and the Institute of Certified Public Accountants of Rwanda (ICPAR).

    According to the Minister of Finance and Economic Planning, Dr. Uzziel Ndagijimana, the loan has four components which include the PFM IT Systems rollout which will take about $5 million, the accountability and financial reporting to which allocation is $3.45 million, the performance based and mid-term budgeting which will take $0.7 million and the last and the largest which is the professionalization of PFM staff, and capacity development which will take $10.85 million.

    The World Bank Country Director for Rwanda, Yasser El-Gammar said that Rwanda already has a solid public financial management system and “we hope this support anchored in the overall strategic plan of Rwanda will enhance this accountability to lower levels and allow the government to have more reliable medium-term budgets but most importantly will support the human capital that is involved in public financial management space.

    “Rwanda has also made some very good progress in this area but there is a need for more qualified personnel in this (public financial management). We look forward to a successful implementation and we are always sure that we will, if not achieve objectives, we will exceed these objectives,” Yasser El-Gammar said.

    Statistics by the Ministry of Justice indicate that in the first eight months of 2018, the Government recovered Frw616,688,568 of the public funds that had been embezzled by the public officials which were 52% of Frw1,187,235,012 of public funds stolen.

    banki_y_isi_7568-93cd7.jpg

  • I&M Bank Rwanda announces Rwf2.6 Billion dividend payout

    In March 2017, the State-owned stake of 19.81% in I&M Bank Rwanda was offered for sale, resulting to Rwf99 030 400.

    During the Annual General Meeting between I&M Bank’s Board of Directors and shareholders, that took place this Monday, 29th May 2018, it was agreed that starting from July 4th, shareholders would start receiving Rwf5.16 ($0.006) per share dividend payout.

    The Chairman of the I&M Bank Rwanda Board, Bill Irwin, said that last year the bank reported Profit after tax of Rwf6.8 billion, where 40% will go to shareholders while the remaining will be invested in the I&M Bank Rwanda’s projects, mainly the construction of its General Headquarters.

    “We have to be having a high amount of investment as some of our projects require a grand amount of investment such as the construction of our headquarters and the upgrading of the bank’s technology.”

    The construction of I&M Bank’s General headquarters will take up to USD20 million while the upgrading of the bank’s technology will take up to Rwf3 million.

    I&M Bank officials affirmed that the shares owned by the government were 19.81% of the bank, and that up to date, there were no discussions on increasing them.

    The CEO of Rwanda Stock Exchange, Rwabukumba Pierre Célestin, said that the state-owned shares are now costing Rwf 95 per piece —increasing from Rwf90, and were sold at a minimum of 1,000 shares.

    The sale is in accordance with the government’s policy of divesting itself of public enterprises as well as its shares in private ones.

    The Board of Directors also agreed to change the bank’s name from I&M Bank Rwanda Ltd to I&M Bank Rwanda Plc.

    According to the managing-director, Robin Bairstow, the ‘Plc’ stood as the legal designation that the bank offered its shares to the general public and was not a private entity.

    As of 31 December 2017, the Bank’s Total Assets stood at Rwf260 billion, a year-on-year increase of 26% while Gross Loans increased by 32.3% to Rwf149.6 billion and Net Loans and Advances increased by 33% Year-on-Year to Rwf146.5 billion.

    The I&M Bank Rwanda board has announced Rwf2.6 Billion dividend payoutI&M Bank Rwanda's managing-director, Robin BairstowThe Chairman of the I&M Bank Rwanda Board, Bill IrwinThe CEO of Rwanda Stock Exchange, Rwabukumba Pierre Célestinabanyamigabane_ba_i_m_bank_bagiye_kugabana_miliyari_2_2_-2-6c87a.jpgry6b1193-3-e3133.jpg

    For more pictures, click here
    Photos: Moses Niyonzima

  • Nissan, Renault in Talks to Merge, Create New Company

    A deal would end the current alliance between the companies and marry them as one corporation, said the people, who asked not to be identified as the details aren’t public. Renault currently owns 43 percent of Nissan while the Japanese carmaker has a 15 percent stake in its French counterpart. Carlos Ghosn, the chairman of both companies, is driving the negotiations and would run the combined entity, the people said.

    The parties are discussing a transaction in which Nissan would essentially give Renault shareholders stock in the new company, the people said. Nissan shareholders would also receive shares in the new company in exchange for their holdings, they said. The automaker may maintain headquarters in both Japan and France.

    Renault shares jumped as much as 8.3 percent in early trading Thursday, hitting the highest intraday level in more than a decade. They were up 4.2 percent at 10:05 a.m. in Paris, giving the company a market value of about 29 billion euros ($36 billion). Nissan shares are down nearly 2 percent over the past year, giving the company a valuation of 4.6 trillion yen ($43 billion).

    Getting a deal done could prove very difficult, the people said. The French government owns 15 percent of Renault and may be reluctant to relinquish control over its stake or have its position watered down. Both the French and Japanese governments would also have to approve a deal and may have strong opinions on where the combined company is domiciled, the people said.

    While the companies have claimed a multitude of benefits from their partnership, its staying power could be complicated until imbalances in the companies’ ownership structures are resolved.

    Ghosn reiterated last month that Japan wouldn’t agree to a tighter structure if France remains a shareholder. He also said he isn’t trying to convince the French state to reduce its stake in Renault.

    “They decide to be here or to get out,” he said. “Frankly, I don’t even open this subject. I just consider that I have the shareholders that I have and I try to satisfy them in the best way possible and as much as possible make sure that they understand our strategy and appreciate our results.”

  • Rwanda among the top 10 African countries to invest in for 2018

    Rand Merchant Bank (RMB) has released its 2018 edition of Where to Invest in Africa. The report assesses the economic outlook and investment opportunities in Africa. In this seventh edition, there are significant changes in the top 10 African nations to invest in and some warnings for the future economic outlook across the continent.

    According to Nema Ramkhelawan-Bhana, African analyst of RMB, “Africa’s importance to the global economy is reflected in a number of noteworthy publications that have been distributed by respected organisations in recent years and we understand that no two businesses are alike and that they regard macroeconomic, political, social and operating variables differently.”

    Governments are gradually coming to the realisation that diversification is necessary to foster meaningful growth. But transformation cannot be achieved in isolation. Structural reforms and greater private sector participation are crucial to unlocking Africa’s potential. RMBs analysis of sectoral developments — specifically in the spheres of finance, infrastructure, resources and retail — strongly support this point of view.

    Top East African investment destinations

    Despite significant socio-political instability negatively impacting the country’s business environment and investment potential, Ethiopia has jumped up one spot into fourth as compared to fifth in the previous sixth and fifth publications. If stability came with economic progress, the now East African largest economy could have ranked higher.

    As a result of Ethiopia’s economic gains, Kenya has lost its placing as the region’s largest economy and moved down to sixth on the investment ranking. However, Kenya is still one of the continent’s strongest economies but it comes with frailties that highlight many of the key issues facing African nations: corruption, ethnic divides, political instability and rising debts.

    Also, Tanzania is now one of Africa’s most exciting investment destinations climbing up to number seven in this year’s ranking. Tanzania is hot on Kenya’s tail and it won’t surprise many to see it also overtake the region’s former leader.

    Next, another one of East Africa’s hottest prospects re-enters the top 10. Rwanda claims the eighth spot in this year’s report as the country continues to demonstrate ongoing growth and diversification.

    Top West African investment destinations

    Ghana, previously on fourth, slipped to fifth whilst remaining the most attractive investment destination in West Africa. Despite a myriad of economic challenges, the country labours on as it slowly rebuilds confidence in its processes and policies under the watchful eye of the International Monetary Fund (IMF).

    Côte d’Ivoire also slips down to tenth from eighth in 2016. After years of political paralysis, the world’s top cocoa producer has earned its place in the sun, supported by a booming economy, an emerging middle class, robust infrastructure development and an improved business environment.

    Nigeria does not make it into the top ten for the first time since the report’s first edition in 2011.

    Top North African investment destinations

    Egypt for the first time unseats South Africa as the leading investment destination in Africa as it has tried to succeed in consolidating part of the economic gains accumulated in the aftermath of the Arab Spring. However, the country’s operating environment could have been an inhibiting factor as Egypt’s rise has to do more with South Africa’s decline.

    Morocco is hot on the heels of its North African peer, holding steady at number three for a second consecutive year, buoyed by solid economic growth, favourable geographic positioning, sturdy infrastructure, strong regulatory policies and a stable political setting.

    Tunisia displaces Algeria from the rankings, making it as the ninth most attractive investment destinations in Africa.

    Finally, South Africa falls to number two on the list, losing its coveted spot as a result of faltering growth outlook and uncertain business environment. Despite the streams of negative news, the country remains a bastion of institutional integrity and continues to boast as one of the best-operating environments in Africa.

    Below are the top 10 African countries to invest in 2018:

    1. Egypt
    2. South Africa
    3. Morocco
    4. Ethiopia
    5. Ghana
    6. Kenya
    7. Tanzania
    8. Rwanda
    9. Tunisia
    10. Cote d’Ivoire

    Source: VenturesAfrica