As an investment destination, North Africa is a strategically important part of any investor’s Middle East & Africa strategy. It is a big region strategically located as a gateway to Europe, Asia, and the rest of Africa, it enjoys attractive demographics, and has some of the highest standards of education in the region. Tunisia has the highest student enrolment ratio in Africa, Egypt is the third largest economy in Africa, and Morocco the one country to emerge from the Arab Spring largely unscathed. The region has shown marked signs of recovery on many fronts – for instance tourist arrivals in North Africa jumped by 22% in 2017 on the back of a much more stable geopolitical environment. This is welcome news not just for the region’s growth, but also for employment, hard currency inflows, and stability. However, despite improvement on several fronts, North Africa continues to grapple with persistent macroeconomic imbalances and economic inequality, creating a constant risk of social unrest.
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