Egypt is now the top investment destination in Africa, according to the Rand Merchant Bank's newly released Where to Invest in Africa 2018. Egypt has replaced South Africa at the top due to “its superior economic activity score and sluggish growth rates in South Africa” according to the press release accompanying the report. The southern country is now second on the list. According to the report, the top ten African destinations for investment also include Morocco in third place, Ethiopia in fourth, and Ghana in fifth. The top ten include a third Arab African country, with Tunisia at number nine. RMB is a leading African corporate and investment bank, according to its website. Since last year Egypt has implemented a range of reforms aimed at improving its economy. The most significant was a decision in November to allow its exchange rate to float freely. There were also reductions in fuel subsidies, and the country has secured a three-year $12 billion loan from the IMF. In June a long-awaited investment law was ratified by the president. It grants investors a number of incentives, including a 50-percent tax break on investments made in underdeveloped areas, and government support for the cost of connecting utilities to new projects. The legislation also brings back private sector free zones, which are exempt from taxes and customs. It will offer a 50-percent rebate to investors on the cost of purchasing land for industrial projects if production begins within two years. Egypt's net foreign direct investment rose by 14.5 percent to $7.9 billion in the 2016-2017 fiscal year, which finished in June.
