6 indices frustrating Nigeria’s chances of attracting international investments—Report
Latest report released by Quantum Global Research Lab in Lagos has listed six indices hobbling the seamless inflow of international investment to the Nigerian economy. Nigeria ranked 19th out of 54 in the new ranking.
The factors according to the managing director of the group, Prof. Milton Delo include growth, risk, demographic, liquidity, business environment and social capital.
Though the report noted that Nigeria’s population and Gross Domestic product (GDP) remain strong pull factor, ease of doing business tend to rubbish the positive implications of the two indices.
The research, which measured the Africa Investment Index (AII), to guide investors on the countries that are most attractive for investment in the short and medium term, rated Botswana, Morocco, Egypt, and South Africa best.
Botswana emerged as the best short-to-medium-term investment destination in Africa according to the firm, which factored six points; growth, risk, demographic, liquidity, business environment and social capital.
According to the ranking, Botswana made it to the top based on credit ratings, current account ratio, ease of doing business, and import cover.
Delo, at a media briefing in Lagos, said Nigeria stand a better chance for long term investment based on its Gross Domestic Product and population and argued that the country has no reason to worry about its external debt.
He noted that Nigeria would bounce back as the rating showed that efforts to move it out of recession were yielding positive results, adding that the convergence in foreign exchange (forex) remained a remarkable effort that would reduce the risk factor in the market.
According to him, “I expect Nigeria to improve. I see the oil price and the micro economy stabilising. Nigeria is good for a long term investment”.
“Nigeria has huge manufacturing potential. It also has huge potentials in agro processing and massive potentials in infrastructure. The power sector will attract long investment and the real estate sector. Oil is not the complete determinant. Nigeria has a lot more to invest in.”
The report warned Nigeria to double investment in infrastructure that would leverage public private partnership initiative to fast track the country’s growth.
Botswana, Morocco, Egypt and South Africa, Zambia, Cote d’Ivoire, Algeria, Tanzania, Namibia and Burkina Faso were rated top 10, while Somalia, Eritrea, Central African Republic, South Sudan, Sierra Leone, Liberia, Malawi, Equatorial Guinea, Gambia and Madagascar were rated worst.
