Nigeria ranked 19th most attractive investment destination in Africa  

….as Botswana comes first

 Nigeria has been ranked the 19th most attractive investment destination in Africa according to the latest Africa Investment Index 2016 by Quantum Global Research Lab on account of high exchange risks, difficulty in doing business and unfavourable regulatory environment.

According to the African Investment Index(AII), a matrix constructed from macroeconomic and financial indicators and the World Bank Group’s Ease of Doing Business Indicators, Botswana, scored highest based on a range of factors that include improved credit rating, current account ratio, import cover and ease of doing business. 

Commenting on the Index, Mthuli Ncube, Head of Quantum Global Research Lab stated: “Despite considerable external challenges and the fall in oil prices, many of the African nations are demonstrating an increased willingness to achieve sustainable growth by diversifying their economies and introducing favourable policies to attract inward investments. 

“Botswana is a case in example – its strategic location, skilled workforce and a politically stable environment have attracted the attention of international investors leading to a significant influx of FDI.” 

According to the report, the top five African investment destinations attracted an overall FDI of $13.6bn. Morocco was ranked second on the Index based on its increasing solid economic growth, strategic geographic positioning, increased foreign direct investment, import cover ratio, and an overall favourable business environment. 

Egypt was ranked third due to an increased foreign direct investment and real interest rates, and a growing urban population. The fourth country on the list, South Africa, scored well on the growth factor of GDP, ease of doing business in the country and significant population. Whilst Zambia, was the fifth country on the list due to its significant domestic investment and access money supply.

Other countries who made the top ten lists includes Cote d’voire, Algeria, Tanzania, Namibia and Burkina Faso. the worst performing countries include war-torn Somalia, Eritea, Central African Republic, South Sudan and Sierra Leone.

Mthuli further commented: “With a population of over one billion people and rapidly growing middle class, Africa clearly offers significant opportunities to invest in the continent’s non-commodities sectors such as financial services, construction and manufacturing amongst others. However, structural reforms and greater private sector involvement are crucial to unlocking Africa’s true potential.”

Quantum Global is an international group of companies active in the areas of private equity investments, investment management as well as macroeconomic research and econometric modeling.

The AII focuses on 6 pillars or factors from a wider range of investment indicators, which include the share of domestic investment in GDP, the share of Africa’s total FDI net inflow, GDP growth rate forecast, population augmented GDP growth factor, real interest rate, the difference of broad money growth to the GDP growth rates, inflation differential, credit rating, import cover, the share of the country’s external debt in its GNI, current account ratio, ease of doing business and the country’s population size.

ISAAC ANYAOGU