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This Is The Most Attractive Country For Investment In Africa For The Second Time In A Row

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Are you looking for the best country for investment in Africa? Look no further because the Rand Merchant Bank (RMB) in South Africa has released a new study report.  It shows exactly where you should be thinking about for 2019. However, the study shows that the most attractive country for investment in Africa is not in the south of the continent.

According to this report by RMB, Where to Invest in Africa 2019, the business and investment environments in the continent has improved since 2017. However, the report singles out a few hurdles that continue to hinder more accelerated development in Africa. These issues include frail governance, reduced access to financing services, problems of infrastructure, rampant corruption in some countries as well as political unrests in some places. But generally, Africa, according to the report, has made important milestones that seek to attract and retain both local and foreign investments in the continent.

Investment Attractiveness Index for Most Attractive Investment Destination

The RMB uses an appropriate Investment Attractiveness index in order to make an assessment and rank the country. The index takes a look at the operating circumstances and economic environments of a country to gauge its potential to attract and retain local, international, and foreign investments. And Viola! Just like that and for the second year in a row, Egypt is the most attractive investment destination in Africa for 2019.

As expected, Egypt got a run for its money from the usual archrivals in the continent. Coming in second position from Cairo all the way down to Cape Town, was South Africa. But following closely in third position was Morocco, while Ethiopia and Kenya came in that order to complete the list of the top five most attractive investment destinations in Africa.

Why Is Egypt the Most Attractive Country of Investment in Africa?

The RMB report associates Egypt’s top rank in Africa with very important milestones. In order to have Egypt as the best, the report singles out the following reasons;

  • A diversified economic environment.
  • Escalating consumer market,
  • Growing availability of hard currency.
  • Stability in exchange rates.
  • Stable improvement in business and investment environments, predominantly in investment-related legal reforms.

Additionally, Egypt is the largest beneficiary of direct foreign investment in Africa. It also has the largest consumer market not only in North Africa, but also in the Middle East.

“Egypt’s economic gain keeps on dominating that of South Africa,” the report says “as South Africa’s growth projections and the size of its economy are lower than those of Egypt and this weighed down its investment ranking.”

Top Ten Countries for Investment in Africa

In addition to the top five most attractive investment destinations in the continent, other usual contenders in African development were named. In a consecutive order from fifth to ten position, the countries are as follows;

  1. Egypt
  2. South Africa
  3. Morocco
  4. Ethiopia
  5. Kenya
  6. Rwanda
  7. Tanzania
  8. Nigeria
  9. Ghana
  10. Ivory Coast

Countries with the Easiest Business and Investment Environments

Mauritius

The country that has the easiest business environment is Mauritius. This is followed by Rwanda while Botswana comes in third. In order to complete the best five countries where doing business is the easiest, the list includes South Africa and Seychelles in that order.

In conclusion, Egypt, Nigeria, and South Africa are the 2018’s three most dominant countries in Africa in terms of GDP. The combined market in these three countries makes up almost half of the approximated $7 trillion market in Africa. In order to maintain this investment attractiveness, Africa expects to improve individual business operating environments.

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Business and Development

Rwanda’s Rise 2.5 Decades After The Devastating Genocide

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Kigali, the capital of Rwanda

Kigali, Rwanda’s capital

Rwanda is emerging as an economic powerhouse in East Africa just 2.5 decades after a very dark and devastating genocide. So good is the economic progress that the country has reduced its reliance on foreign donations. Currently, Rwanda domestically funds 84 percent of its budget. Two decades ago, the country could afford to fund only 36 percent of its budget.

Indicators

In addition to the reduced reliance on foreign aid, several indicators demonstrate Rwanda’s rapid growth. Major indicators are the rate of growth, decline in inequality, diversification, and decline in rates of poverty.

Growth Rate

Between 2001 and 2014, the average economic growth was 8 percent. The IMF projected Rwanda’s economic growth at 7.2 percent in 2018. The projections were based on favorable rains and strong industrial activity. In the first quarter of 2018, Rwanda registered a 10.6 percent growth in economy.

Equality in Rwanda

The country’s growth is also characterized by a decline in rates of inequality. The decline is largely due to improved healthcare, school enrollment, literacy, and life expectancy.

Greater equality is exhibited in the country’s parliament, where women make up 68 percent of parliament. This is one of the highest rates globally, putting Rwanda up in the ranks of countries with highest female representation in parliament.

Diversification

Farming is an important sector in Rwanda’s economy. A majority of the population still live in rural areas and depend on subsistence farming. The government plans to shifts this focus to include more economic and investment opportunities. Specifically, the country is moving towards becoming more of a service-oriented and knowledge-based economy.

Decline in Poverty

The economic growth has translated into reducing poverty levels across the country. In 2005, 57 percent of Rwandese lived below the poverty line. By 2010, this number had reduced to 45 percent. In 2017, the poverty level was registered at 38.2 percent, according to the National Institute of Statistics of Rwanda.

Kagame’s Transformative Leadership

At the centre of the country’s rapid growth is President Paul Kagame. Kagame adopted and pursued policies that have transformed Rwanda to a prospective middle economy. The President continues to implement development plans for the country, as outlined in the country’s vision 2020. Also, under Kagame, Rwanda’s ease of doing business has significantly improved.

Vision 2020

Vision 2020 is Rwanda’s blueprint to continued economic progress. The vision is based on several pillars that include good governance, human resource development, infrastructure development, and private sector-led development. Other pillars are regional and international integration and market-oriented agriculture. With only one year left on the Plan, the government is still optimistic it will hit the targets.

Rwanda will be moving from Vision 2020 to Vision 2050, which heightens the growth prospects of the country by targeting a high income economy status by 2050. In order to reach this target, the country needs to achieve an average growth rate of 10 percent.

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Business and Development

This Pan African, Mentor-Driven And Corporate-Backed Accelerator Is Rewarding the 10 Most Promising Startups in Africa 2019

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The process of selecting 10 most promising startups in Africa 2019 is soon starting. A Pan African, mentor-driven and corporate-backed accelerator, aimed at empowering innovators is looking for the best startups in Africa to support so they can grow and realize their potential. Have you heard of Startupbootcamp Afritech 2019 Fasttrack Tour? This is a tour that will involve pitching events, mentoring and networking as well as hackathons in select cities in Africa.  These tour activities are lined up in order to ensure that the selected startups in Africa 2019 taste the goodies that the corporate giants can provide.

Startupbootcamp AfriTech Accelerator

Startupbootcamp AfriTech is the accelerator behind this exciting opportunity for startups. The team has assembled a powerful squad of sponsors in order to make sure that the selected startups reap maximum benefits. These sponsors include PWC, BNP, RCS, Nedbank, Paribas and Old Mutual. In this way, the accelerator empowers these innovative and promising startups in Africa in order to connect them with the best corporate players on the continent. Pan African, mentor-driven and corporate-backed accelerator, aimed at empowering innovators

Philip Kiracofe, Sebekedi Motlhabane Koloi and Zachariah George make the team behind this South African Startup accelerator. In order to make this opportunity best fitting to startups, the team will visit 15 countries in Africa. There will be 19 events in total so that each selected city gets the best attention. During these events, 10 most promising startups in Africa 2019 will be selected for rewards. In addition to startups, the accelerator is also inviting the corporate world, investors, mentors and other thought leaders to join in the events.

The program is already underway and will end on 22nd May. The 10 selected most promising startups in Africa will have various rewards lined up for grabs. Why should your startup apply and strive to be among the selected few? You should apply because the 10 selected most promising tech startups in Africa will get an opportunity to present their ideas to the accelerator team and fellow innovators. Additionally, you will also get an opportunity to get mentor feedback and network with the corporate world. You will also get to know more about this accelerator program.

What Awaits The 10 Most Promising Startups in Africa 2019?

The selected 10 most promising startups in Africa will receive the following:

  • Be invited to present their innovative ideas to the Startupbootcamp team and fellow entrepreneurs
  • Have the opportunity to receive mentor feedback, network with corporates and learn more about the Cape Town-based Startupbootcamp accelerator program
  • Get in the accelerator program watch list in order to get a better chance to get into the program or get opportunities to do pilots with corporate sponsors.
  • Get exposure to worldwide entrepreneurship and business opportunities in order to develop.
  • Meet with the industry best executives in order to learn even more.

Countries, Cities, and Dates for the Events

Select your nearest city and the best date for your startup in order to submit an application. Additionally, the earlier a startup applies,  the better the chances it will have to become one of the 10 most promising startups in Africa.

For a startup to be among the 10 most promising startups in Africa, it will need to be in at least one of the following sectors;

  • Water, sanitation, and hygiene
  • Transport and logistics
  • Retail and wholesale
  • Leisure and travel
  • Information Communication Technology
  • Healthcare
  • Financial services
  • Education
  • Creative, media and entertainment
  • Construction and manufacturing
  • Clean technology and energy
  • Business services
  • Agribusiness

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African Ingenuity

Video Games Are Emerging in Africa With Strong African themes

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Video games are becoming a booming industry in Africa thanks to a mushroom of innovators and developers on the continent. Startups are spiraling across the continent coming up with unprecedented games and content with African themes. The gaming industry in Africa is now worth millions of dollars due to relentless efforts of these developers, programmers, scientists, entrepreneurs and other tech gurus.

Madiba Guillaume Olivier had dreams like any other teenager when he was growing up in Cameroon. His most pressing dream was to move to America or even to Europe in order to pursue not “greener pastures” but his zeal for video games. He lived a life of video games because his father owned a video store. Olivier did not sit and wait; rather he went online in order to understand more about game design. However, it was not until when he was doing computer science at the University of Yaoundé that his dream (and that of the continent) started to bear fruit. He partnered with a group of friends to work on a project they dubbed Aurion: Legacy of the Kori-Odan.

Video Games Project and the Prince of Planet Auriona

The project was a 2D flight of the imagination game that featured Enzo and Erine, a Prince and his fiancée. The two were embroiled in a quest to reclaim the lost power after a family member betrayed them in the planet Auriona. The team later improved the game design and used it to dive deeper into the industry. Olivier did not move to US or even Europe. The project led to a natural death of his dreams of moving but gave birth to even better dreams with continent-wide and later worldwide ramifications. Olivier and his team released the official version of the game in 2011 winning the hearts of fans, investors and everything else in between. That is how Africa got Kiro’o Games, the first video game studio to come up with an African-themed mythological video game.

“We started to think about the fact that we can make our own studio here [Africa] and sell games abroad,” Olivier remembers.

Olivier and his team are not the only innovators doing Africa proud in this emerging video game industry. In fact, over the last ten years, many video game developers and startups have sprung up across the continent. There are startups in South Africa, Kenya, Ghana, Nigeria, Tunisia and even in Egypt. Because of growth in funding opportunities and supporting accelerator tech hubs on the continent, Africa is moving beyond the confines that resulted from inadequate infrastructure in some countries. Traditional fintechs in Arica are now normal and nothing to write home about anymore. The continent is expanding beyond what has now become normal tech disruptions in education, health, insurance, agriculture into other areas. Now is the time for the gaming industry.

Other African Themed Video Games

The African narratives, myths, legends, traditions, stories, creativities, mysteries and other mystical societal characteristics are more frightening than Halloween. Or at least to those who understand why it is commemorated in the first place. Tapping into this social heritage and cultural material is a sure success path for the gaming industry. That is why a Moroccan Telcom has invested in a mobile game.

There are other notable gaming innovators doing exciting video games. This boom can be observed with The International Game Developers Association having seven chapters in Africa.

Some innovators in this space include:

  • Ananse: The Origin by Leti Arts in Kenya, is a game based on impressive folklore from Ghana.
  • Celestial Games and Thoopid are also doing Africa proud with magnificent games from the South of the continent.
  • Ebola Strike Force that touches on the story of researchers and scientists yearning to save humankind from the lethal virus is breathtaking.
  • Mzito by Weza Interactive Entertainment in Kenya is a game that takes users on a journey to save the continent. Here, you play as a lion and use ancient spirits to save Africa from ancient corruption. “We wanted to focus on the African theme on because we think it’s time for Africa,” George Ohere, the Weza Interactive CEO said recently.
  • Sambisa Assault is another one that gives game enthusiasts the chance to join the fight against terror movements.
  • The Okada Rider by ChopUp studio in Nigeria that simulates the notorious traffic congestion in the streets of Lagos.
  • Digitalmania has more than 87 magnificent games on Google Play, Facebook, and Apple Store. Sadly, these tech giants do not allow merchant payments in Tunisia. Because of this, the innovator cannot get revenue from their innovations.

The African Video Game Industry by Revenue

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