For African countries, Foreign Direct Investment (FDI) is usually a major source of foreign capital and funds. FDI normally provides an added opportunity to increase the transfer of skills, technology, and job prospects. Recent analysis of the effects of FDI on local businesses in African countries suggests that foreign investment vigorously augments local productivity growth.
The African Countries of the Future is an annual classification of countries that measures the FDI strategy, economic potential, human resources etc of countries on the continent. It is generated using data collected by fDi Magazine, a bi-monthly FDI publication owned by The Financial Times Ltd.
Morocco was pronounced the number one African Country of the Future for 2011/2012, as published on fDiIntelligence.com.
Morocco knocked South Africa off the top spot partially due to its success in attracting foreign investment projects. The North African country is also winner in the best FDI strategy and best infrastructure categories. Morocco is also credited with the highest internet users per capita, beating countries like Tunisia and Nigeria, which come in third and fifth respectively.
South Africa, which was the African Country of the Future 2010/2011, came in second this year. Despite a 13 percent reduction in foreign investments in 2010, however, FDI figures for early 2011 showed that the country was still a major destination for FDI projects.
Mauritius follows South Africa closely in third position and is also listed as the African country with the best quality of life. According to the rankings on fDiIntelligence.com, Egypt has the best economic potential and best human resources, Rwanda the best cost effectiveness.
The African Countries of the Future rankings are formulated by an independent collection of data by fDi in 59 African countries. The data is then evaluated under a number of categories and an overall best (in this case Morocco) is selected.