New Zimbabwe.com

Ncube’s private institution ranks Zim economy among Africa’s worst

By Alois Vinga

NEWLY appointed Finance Minister steps into an economy his private organisation once ranked as one of the worst on the continent.

The 2018 Africa Investment Index which was compiled Quantum Global Research Lab then directed ranks Zimbabwe among the 10 worst investment destinations on the continent.

The Africa Investment Index is compiled annually and is meant to paint a picture of the investment attractiveness of countries in the medium term.

It provides a snapshot of the investment climate in 54 countries in Africa and provides a ranking based on their attractiveness.

Unfortunately according to the index ten worst investment destinations on the continent, Zimbabwe is on position ten, Sao Tome Principe on ninth, Guinea on eighth, Sierra Leone seventh, Gambia sixth, Equatorial Guinea fifth, Eritrea fourth, Somalia third, Liberia second and Central African Republic on the first position.

The Index uses six criteria namely economic growth factors, liquidity factors, business environment factors, demographic factors and a measure of social capital using the Facebook penetration rate.

In contrast the top ten countries in the ranking are Morocco, Egypt, Algeria, Botswana, Cote d’Ivore, South Africa, Ethiopia, Zambia Kenya and Senegal.

“Botswana is ranked number one in Sub-Saharan Africa , but number four in Africa overall behind Algeria. Botswana shows strong rankings on risk factors and ease of doing business. Cote d’Ivoire is ranked at number five, due to its strong economic growth and low risk factors. South Africa one of the three largest economies in Africa is ranked at number six. Kenya which experienced a protracted election in 2017 is ranked at number nine and Senegal at number ten,” says Ncube in the index report.

Asked how in his current capacity as Finance and Economic Development Minister he was going to transform the problems he had identified before taking up the new job, Ncube had not managed to respond at the time of publishing.