Nigeria not among top 10 investment destinations in Africa for 2017 – says Where to invest in Africa report

Poor Economic condition and difficult business operating environment account for this poor rating.

According to the report, Nigeria dropped from six best investment locations in the continent in 2016 to 13th position. This drastic drop is due to economic recession and relatively difficult business operating environment.

However, the stated stated that there is a strong prospect for the Africa’s largest economy as shown by the FDI inflows into the country in 2016.

“For the first time in 15 years, Nigeria does not feature in the Top 10, recessionary conditions having eroded its short-term investment appeal."

"Despite the many challenges it faces though, the West African giant is still regarded as a viable long-term investment option, as evidenced by the improvement in FDI inflows in 2016,” the report said.

Based on the RMB’s Investment Attractiveness Index, Egypt is the best investment destination in Africa for 2017. Other countries on the top ten list are South Africa, Morocco, Ethiopia, Ghana, Kenya, Tanzania, Rwanda, Tunisia and Cote d'Ivoire.

The report further explained that the two major indicators or parameters used in arriving at this ranking for countries in Africa are similar indicators considered by foreign or external investors before making decisions on location for their investments across the globe.

“RMB’s Investment Attractiveness Index provides a means by which to assess the most appealing of African investment destinations. The index does this by overlaying macroeconomic fundamentals with the pragmatics of doing business on the continent,” it said.

“Our methodology, which is detailed in Chapter 2, is straightforward. But it encapsulates what we perceive to be the most important conditions for viable investment in Africa. These are the Economic activity (expressed as a weighted average of market size and forecasted levels of GDP growth) and operating environment (depicted as a weighted average of four international surveys that measure the ease of doing business).”

For Nigeria, improving economic conditions is projected to have a great impact on the country's investment attractiveness.

“The Nigerian economy’s expected recovery over the forecast period is set to push the nation back into the Top 10 rankings in time to come."

"Implementation of the government’s Economic and Growth Recovery Plan should garner greater investor confidence — provided there is policy continuity ahead of the 2019 presidential election.”


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