Lagos - Nigeria is now the second-most attractive investment destination in the continent.
This is according to Rand Merchant Bank’s (RMB’s) third annual, “Where to Invest in Africa,” which predicted the West African country would top the list ahead of South Africa in the upcoming years.
Joandra Griesel, RMB Corporate Marketing Brand Communications Manager, was upbeat at Nigeria’s prospects as the report was released on Monday.
“One of the most notable conclusions is that Nigeria’s investment attractiveness continues to progress. It has moved into second place from third last year and is now close on the heels of South Africa, which remains in first position, for now.
"South Africa could possibly be overtaken by Nigeria in the next two to four years, or even sooner depending on Nigeria’s rate of economic growth,” Griesel stated in the report.
Ranked 33rd and 38th internationally, South Africa and Nigeria are the only two countries from the continent inside the Top 40.
“African countries still have some way to go to compete with those in the rest of the world as the most attractive investment countries,” Griesel stated.
Meanwhile, another notable movement on the African front was is Ghana.
Ranked 10th in 2007, it has moved up to fourth place despite being only a fifth of the economic size of the three continental giants- South Africa, Egypt and Nigeria.
North and East African countries are jostling for positions within the bottom half of the Top 10 with Morocco overtaking Tunisia and Tanzania moving ahead of Kenya.
Although Egypt is ranked third, continued political discord has detracted from its favourable characteristics such as its sizeable market, large population and decent operating environment, which should support investment once tensions subside.
The 2013/2014 ranking was formulised before the recent flare-up of tensions in Egypt and Libya, which has therefore not been taken into account in the latest attractiveness scorings.
Of the 52 countries ranked in RMB’s Where to Invest in Africa report, 42 showed an improvement in their investment attractiveness. Some of the most troubled countries on the continent showed the best improvements, notably Sao Tome and Principe, Gabon, Cameroon, Sierra Leone, Congo, Mauritania and Liberia.
RMB is one of the continent’s biggest financial institutions.
It uses three main factors to determine the investment attractiveness of each country in its report, namely market size, economic growth and an operating environment index.
- CAJ News