Nigeria Is The Ninth Most Attractive Investment Location In Africa

The business and investment bank, Rand Merchant Bank (RMB) has placed Nigeria as the ninth most attractive place to invest in Africa.

31 countries on the continent were evaluated for the rating according to BrandSpur online news, which was just released in the bank’s research titled “Where to Invest in Africa 2024.”

Nigeria’s high population allowed the bank to classify it as a “Highflyer” nation with higher overall RMB rating scores, but the nation still performs poorly in areas of market accessibility and innovation.

According to the report: “Being one of the largest economies on the continent and having the largest population gets Nigeria to an overall ranking of ninth.”

Based on four pillars and twenty metrics; social and human development, economic stability and investment climate, market accessibility and innovation, and economic performance and potential; the bank evaluated thirty-one African nations.

Nigeria was rated as good in social and human development and as satisfactory in economic performance and potential, placing it second and fifteenth, respectively.

It did, however, rank 29th in market accessibility and innovation and 21st in economic stability and investment climate, both categories deemed to be less desirable.

Continuing, the report holds that: “Nigeria’s political stability repeats the nation’s complexity ranking of 29th on the model. This expansive nation of many languages and cultural groupings, a complex and nuanced system of a presidency that alternates between the Christian south and the Muslim north, coupled with an insurgency problem, makes this a politically fraught place for investors. All these make for a challenging business environment where great benefits are available to those who succeed.”

But after 2016, Nigeria has become a more favourable destination for investors to prosper.

It stated: “Its 2016 ranking on the Ease of Doing Business index was 169 out of 190 countries. It rose to position 131 in the 2020 edition.”

The report reads: “Putting these elements together translates into a ranking across the 31 countries. Using the four pillars and the weighted Z-scores, the two small island economies of Seychelles and Mauritius rank as the most attractive investment destinations on the continent while the significantly larger economies of Egypt, South Africa, and Morocco follow next in the attractiveness ranking.”