August 12, 2024/CSL Research
Based on Rand Merchant Bank (RMB) and Gordon Institute of Business Science (GIBS) 2024 edition of Where to Invest in Africa report – which tracks the investment attractiveness ranking of 31 African nations, Nigeria ranks 9 with overall score of 0.163 behind peers like Seychelles (1), Mauritius (2), Egypt (3), South Africa (4), Morocco (5), Ghana (6), Tunisia (7), and Senegal (8).
The scorecard for the 2024 issue highlights 31 countries that collectively represent 92% of the continent’s economic activity (by GDP), and more than one billion people (75% of the continent’s population). The model is constructed from 20 metrics across 4 main pillars, which are economic performance and potential, market accessibility and innovation, economic stability and investment climate, and social and human development.
Nigeria is recognized for its significant economic potential despite ongoing challenges like foreign exchange shortages and infrastructure deficits. Nigeria’s large and youthful population, along with ongoing economic diversification efforts, makes it a notable emerging market. However, the country ranks lower in areas such as economic stability and market accessibility, which are critical for attracting more foreign investments. Based on the four metrics assessed, Nigeria’s rankings were as highlighted below.
In terms of economic performance & potential which considers factors like GDP growth, market size, and overall economic potential, which are high due to Nigeria’s large population and resource base, Nigeria ranked second. On the basis of market accessibility & innovation, Nigeria ranked 29.
This lower ranking reflects challenges related to infrastructure, ease of doing business, and access to markets, indicating significant room for improvement in creating a more business-friendly environment. Under economic stability & investment climate which assesses factors such as political stability, regulatory environment, and economic policies, Nigeria ranked 21. Nigeria’s position here highlights issues with economic stability, such as inflation and currency volatility. On social & human development which includes metrics related to education, health, and overall quality of life, Nigeria ranked 15.
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