UK research firm African Rainbow Consulting is to launch an index ranking African countries for their investment potential, tapping into increasing interest in the region as its markets become more developed.

The Star of Africa index, which launches on 18 February, will be based on desk and field research by African universities, government departments, non-governmental organisations and international bodies. Rainbow also compiles country briefings and sector focus reports on all Africa’s 53 countries.

At a time when many developed economies are mired in recession, Africa’s GDP growth is forecast to exceed 5 per cent in 2009 and its markets present excellent value investment opportunities, according to Johannesburg-based financial services firm Stanlib.

Several factors support this potential, including a rising middle class which is driving growth in the financial and consumer sectors, along with the long term investments made on the continent by Chinese firms. Renewable energy production is another important factor - a number of countries have huge projects planned which are being funded by sources including foreign governments and banks.

In recent years several investment firms have launched Africa-themed funds, including Julius Baer, Pictet, Franklin Templeton and Fidelity.