Nigeria ranks 9th on Where to Invest in Africa Report
The 2024 Where to Invest in Africa Report, published by Rand Merchant Bank (RMB), has identified Nigeria as one of the top ten most appealing investment destinations in Africa, achieving an overall score of 0.163.
The Where to invest in Africa report evaluation utilized a weighted Z-score across four key metric pillars: economic performance and potential, market accessibility and innovation, economic stability and investment climate, and social and human development, with respective weights of 35%, 20%, 25%, and 20%. Notably, Nigeria secured the 2nd position in the Economic Performance and Potential category, underscoring its promising growth prospects, which are likely fueled by a substantial consumer market, a variety of economic sectors, and ongoing reforms.
Nevertheless, the where to invest in Africa report points out several areas needing enhancement. For example, Nigeria’s 29th place in market accessibility and innovation indicates a need for improvements in the business environment and the promotion of a more innovative ecosystem.
Additionally, the country’s 21st ranking in the Economic Stability and Investment Climate pillar suggests that further actions are necessary to create a more stable and investor-friendly atmosphere. Furthermore, Nigeria’s 15th position in the Social and Human Development pillar reflects insufficient investments in human capital and social infrastructure, which are vital for sustainable long-term economic growth.
It is important to interpret the overall performance scores with caution, as they are primarily influenced by economic performance and potential metrics. Nonetheless, the where to invest in Africa report offers policymakers critical insights into the areas that require focus to enhance Nigeria’s appeal to prospective investors.
To draw more investments into the nation, the government should intensify efforts to address challenges such as market inaccessibility, business operation difficulties, and economic instability.
