Rwanda has been ranked the most attractive investment destination in East Africa and 9th overall in Africa, according to the Rand Merchant Bank’s 2014/2015 report.
Some of the countries that made it in the top ten include South Africa, Nigeria, Ghana, Morocco, Tunisia, Egypt, Ethiopia, Algeria and Tanzania.
Rwanda also has the best reforms in the world when it comes to the ease of doing business; this is according to the Africa Competitiveness Report 2013.
(READ MORE: Rwanda keen to become a regional economic powerhouse)
“When we look at best ranked country in Africa we look at three criteria, the growth rate focus, market size and the ease of doing business,” Celeste Fauconnier, an RMB Africa analyst told CNBC Africa.
“This was attributed to its reform efforts, and outlook that was earlier also accredited stable with a B+ rating.”
Fauconnier added that the east African country has taken a leaf from Asian tigers like Singapore.
“It’s definitely a country that has taken advantage of being a service provider in the East Africa region. The government has realised that it is a land locked country and does not have resources to be able to attract export revenue,” she said.
(READ MORE: Reforms at heart of Rwanda’s economic transformation)
“They have adopted the Singapore style by taking advantage of investment and being able to tap into the whole of the east Africa economy.”
Fauconnier said Rwanda is set to remain in the same position for the next three to four years.
“However, the country should be cautious of increasing debt levels too much,” she warned.
She also said the regional economic powerhouses like Kenya and Uganda were expected to improve in rankings going forward.
“We are currently looking at 2016 business ranking and Kenya is promising to do well and [possibly fall in the top ten].”