05 May 2010 Africa investor
Africa investor (Ai) and Interbrand-Sampson’s first African Brand Investment Index provides invaluable evidence about how countries are perceived as investment destinations by the global investment community. The first of its kind, the research outlines what investors think about Africa, and what Africa’s countries should be aware of when jostling for investment.
“African governments and business leaders alike need to realise the way in which they are promoting their countries is absolutely crucial for attracting and retaining both domestic and foreign investment, and the Brand Investment Survey and Index aims to highlight just this,” said Hubert Danso, vice chairman and managing director at Africa investor.
In view of the forthcoming World Economic Forum (WEF), this groundbreaking research outlines the following top-line findings:
The top three perceptional investment attributes were political stability, economic growth prospects and currency stability.
Regional benchmarks
According to the poll, Africa was considered the third most attractive investment destination after southeast Asia and India.
Country performance
South Africa emerged the clear winner as the preferred investment destination, and Somalia was ranked to have the worst investment brand on the continent. With 60% of those surveyed saying they rely on professional advisors as sources of information when exploring investment opportunities, many also felt that African governments are not doing enough to promote the region as an investment destination.
The issues highlighted around Africa’s investment brand have much to do with political stability and regulatory practice. The Index also revealed that the majority of respondents feel that Africa will improve its investment brand profile over the next 12 months. “Africa has a great opportunity to harness the goodwill form the investment community to position brand Africa as a globally competitive investment destination. The continent has made great strides implementing a raft of regulatory reforms to ensure its business friendly and it’s up to governments to commission adequate resources to communicate effective in today’s competitive and complex global investment information environment,” says Danso.
Brand promotion
Professional advisers were ranked the top choice when making a decision about a new investment destination.
“We wanted to first understand the strength of the African investment brand in a competitive context, to establish the images associated with that brand, and to find out the positive or negative brand images attached to particular African countries,” says Doug de Villiers, CEO of Interbrand-Sampson, which ran the survey in partnership with Africa investor.
