Nigeria has been ranked the 14th preferred investment destinations in Africa still below the top 10 spot despite improvement in oil prices which has boosted its revenue base.
The Africa Investment Index 2018 released on Monday, showed that Nigeria ranked fairly on the Index based on its increasing solid economic growth, strategic geographic positioning, increased foreign direct investment, external debt levels, social capital factors and overall favourable business environment.
According to the Africa investment Index 2018, Morocco emerged the most attractive economy for investments flowing into the African continent in 2017 improving on its second position of the previous year.
The improvement in Nigeria’s revenues was evident in its better ranking in the index which moved five positions up from 19th in 2016 to 14th in 2017 as reflected in the 2018 report.
Published by Quantum Global (an independent research arm, Quantum Global Research Lab), the African Investment Index (AII) seeks to provide a snapshot of the investment climate in the 54 countries in Africa and give a ranking according to their attractiveness.
Overview
Cote d’Ivoire ranks 5th while being the fastest growing economy in Africa and scores relatively well in liquidity and risk factors such as real interest rate, exchange rate risk and current account ratio.
The improved risk profile, combined with strong liquidity, business environment, demographics and the social capital record has rendered Algeria a rise to the 3rd position in the second edition. Botswana, previously ranked as Africa’s top investment destination in 2017, ranks 4th scoring well in risk factors as well as the business environment.
Here are the top 10 most attractive investment destination in Africa
Rank Top 10 (best to worst)..
1. Morocco
2. Egypt
3. Algeria
4. Botswana
5. Cote d’Ivoire
6. South Africa
7. Ethiopia
8. Zambia
9. Kenya
10. Senegal
14. Nigeria
Here are the top 10 least attractive investment destination in Africa.
Rank Bottom 10 (worst to best)
1. Central African Republic
2. Liberia
3. Somalia
4. Eritrea
5. Equatorial Guinea
6. Gambia, The
7. Sierra Leone
8. Guinea
9. Sao Tome and Principe
10. Zimbabwe
Methodology
The AII indicators are based on secondary data collected from World Bank Development Indicators, IMF World Economic Outlook, UNCTAD Data Centre and own estimates.
According to the publishers, the index uses six criteria namely economic growth factors, liquidity factors, risk factors, business environment factors (doing business indicators) demographic factors as well as a measure of social capital using Facebook penetration rate.
