Zambia Economy is Africa’s 8th Best
Quantum Global Group, a Zurich-Switzerland based Investment Fund and asset organisation with a large african focus has ranked zambia as the 8th best performing economy. According to their 2018 africa investment index report, zambia is also the third best performing economy in the sadc region, behind botswana and south africa.
Quantum Global’s 2018 africa investment index [aii] ranks zambia as africa’s overall eighth best on growth, liquidity, risk, business environment, demographic, and social capital factors.
The Africa Investment Index [AII] averages each country’s macroeconomic and financial indicator rankings on growth, liquidity, risk, business environment, demographic, and social capital factors. The index is constructed from the above listed macroeconomic and financial indicators and the World Bank Group’s Ease of Doing Business Indicators (DBI).
The top ten economies, in a ranking of 54 African countries, are:
5. Ivory Coast
6. South Africa
Among the top ten, north africa was the best performing region with morocco, egypt, and algeria as pace setters, followed by the SADC region represented by Botswana, South Africa, and Zambia, then west africa was third with Ivory Coast 5th and Senegal 10th, and finally East Africa represented by Ethiopia 7th and Kenya 9th.
Zambia’s ranking by Quantum Global is a reflection that the country continues to be recognised as one of the best emerging markets for overseas investment. It is also an affirmation that international investors are looking at a wide range of sectors for investments including in areas such as energy, infrastructure, tourism, and agriculture among others.
Related to 2018 Africa Investment Index Report, Professor Mthuli Ncube, Head of Quantum Global Research Lab stated that in spite of the improvements in commodity prices, African economies are turning their attention towards diversification to stimulate industrial development and attract investments in non-commodity strategic sectors.
Professor Mthuli Ncube also said that continued Foreign Direct Investment [FDI] inflows will continue to drive the much-needed capital to develop Africa’s primary sectors to meet the demands of the continent’s rapidly growing middle-class, and into manufacturing sectors to create more jobs, enhance economic growth and support structural transformation.
Commenting on the development, Minister of Finance Margaret Mwanakatwe says the independent ranking by Quantum Global Group is consistent and in the same positive direction with Zambia’s rating outcomes published by Moody’s, Fitch, and Standard and Poor’s.
Related to the risk factors cited by Quantum Global, Mrs. Mwanakatwe reaffirmed the Government’s commitment to the implementation of the Medium Term Debt Strategy and improvement of the domestic revenue base. She took the opportunity to restate Zambia’s commitment in meeting external debt obligations while remaining steadfast in dismantling the country’s domestic debt. The Minister added that the Treasury has developed a strategy for dismantling domestic arrears.
“To ensure that the confidence of our people and that of the international investment community in our capacity to guide the economy to greater heights is NOT eroded, we will continue with economic stabilisation, transformation, and growth reforms so that we position the country for increased solid economic performance by leveraging on our strategic geographical location, increasing foreign direct investment and improve the overall business environment,” stated Mrs. Mwanakatwe.
She added that, “we will do our best to build a strong private sector, create jobs, and grow wealth without leaving anyone behind.”
Through this initiative, Mrs. Mwanakatwe said, “the Ministry of Finance will ensure that the resources released are channeled towards paying-off contractors and suppliers in respective Ministries, Provinces, and Other Spending Agencies; to energise the economy, promote the growth of the private sector, create jobs and expand wealth.”