A new
research released by Quantum Global Research Lab has shown that Nigeria
requires extra effort to regain position as a leading investment destination in
Africa.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.
The ranking
indicated that Botswana made it to the top based on credit ratings, current
account ratio, ease of doing business, and import cover.Coming at the 19th
position out of the 54 countries on the continent, the Managing Director, Head
of Quantum Global Research Lab, Prof. Milton 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.
He said the
country has no reason to worry about its external debt, and 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.
“I expect
Nigeria to improve. I see the oil price and the micro economy stabilising.
Nigeria is good for a long term investment,” Delo said,
that although
the oil price could fluctuate but in the short and medium term it would haul
because the supply exceeds demand.
He noted
that investment in other sectors of the Nigerian economy would increase,
particularly in the areas of social capital. “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.”
Delo
stressed that it is critical for Nigeria to invest in infrastructure leveraging
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.
According to
the report, in terms of improvement in the past three years, Nigeria and other
countries such as Algeria, and Tunisia showed a worsening of their positions in
the ranking, while Burkina Faso, Rwanda, Swaziland and Tanzania showed
improvement.
Guardian
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