The AII’s Growth Factors look specifically at Domestic investment (as % of Gross Domestic Product), the size of an economy as well as economic growth. Business Environment FactorsThe AII categorises the Business Environment Factors according to the ease of doing business in a given country. It is constructed from macroeconomic and financial indicators and the World Bank Group’s Ease of Doing Business indicators. The case for African investments is becoming an increasingly discussed topic given the intricacies and nuances of doing business in each individual African country. Adjusting this spread with factors such as GDP size of the economy, demographics, ease of doing business, Facebook penetration, then yields a risk-premium for the country.

Source: The North Africa Journal February 01, 2018 15:22 UTC