Baseline Profitability Index (BPI) ranks Botswana position 1 in terms of attractiveness for investment

Thursday, 29 May 2014
English

Botswana has been rated the best destination in the world for foreign investors, according to the U.S.-based Foreign Policy magazine that evaluated 112 countries.  The 2014 Baseline Profitability Index (BPI) value for Botswana was 1.31, followed by Hong Kong with 1.22 and Taiwan's BPI with 1.2.  Therefore, Botswana came tops in terms of Preservation of value, Asset growth and ease of repatriation of profits. Last year Botswana came in second to Hong Kong in the survey.

The BPI report assessed eight factors — economic growth, financial stability, physical security, corruption, expropriation by government, exploitation by local partners, capital controls, and exchange rates — to determine the investment value of an economy based on the security and rate of return on investment.  In this regard,  the index further looks at issues of political stability, good governance as well as economic growth and levels of opportunity in the context of three key factors:

  • how much an asset's value grows,
  • the preservation of that value while the asset is owned, and
  • the ease of bringing home the proceeds from selling the asset.

According to its creators until BPI no index has combined these factors into a summary statistic that conveys a country's basic attractiveness for investment. For more information visit:

http://www.foreignpolicy.com/articles/2014/05/29/where_to_invest_around_the_world_2014_edition_bpi