Quantum Global Group, the Switzerland-based investment management and research firm, ranked Nigeria as the 19th most sought-after investment haven for foreign investors in their Africa Investment Index. Jean Claude Bastos de Morais, Quantum Global’s founder, said that Nigeria attracted a foreign direct investment (FDI) of $3.1 billion in 2015 that pushed it up the graph in the Index. Nigeria has also been projected as a recession-free country with a 2.5% growth in GDP in 2018.
Professor Mthuli Ncube, head of Quantum Global Research Lab explains, “Despite the current economic challenges, we are quite confident on the medium to long-term market prospects.” He added, “Nigeria has earmarked a significant amount of capital to develop critical infrastructure in the country and there are various opportunities for public private collaboration providing investors’ return on their investments. We anticipate that investment in infrastructure will underpin the growth of the economy and meet the needs of a large Nigerian growth population.”
As the oil rates fell, Nigeria had to increase its efforts towards the diversification of its economy. They created a well-planned roadmap to develop their public infrastructure and trigger the growth of important industries, such as agriculture and manufacturing. Nigeria plans to puff up the numbers of exports to stabilize the growth rate of its macro-economy.
The global market is unstable. Sub-Saharan Africa’s position is spooked by some downside risks. Moreover, there’s a certain degree of uncertainty regarding United States of America’s trade policies under Trump’s administration. The future of Africa Growth and Opportunity Act (AGOA), Power Africa Initiative and President’s Emergency Plan for AIDS Relief (PEPFAR) looks bleak as there is a 30% cut in the monetary assistance from the US. Further hike in interest rates can push capital outflows and mitigate bond issuances, resulting in a jump in the cost of financing the Sub-Saharan region particularly.
Despite the volatility, Nigeria has brandished attractive investment prospects that kill two birds with one stone. Strengthening of the local economy and the influx of foreign investors will generate a lot of new opportunities for the people of Nigeria.
Botswana topped the African Investment Index with an FDI worth $13.6 billion. The runner-ups are Morocco and Egypt. Somalia and South Sudan are some the countries that are way behind in the rankings. On the other hand, Ghana has been branded the 18th most attractive investment destination. Ghana’s industries are diverse and rich, consisting of manufacturing, exports of digital goods, ship construction, and automotive industry. These have been the contributors to Ghana’s growth, which is 13% annually. It has nurtured Ghana’s economic status to that of a lower-middle-income country.
Quantum Global Group is an international conglomerate of companies involved in investment management, private wealth management, macro-economic research, and econometric modeling. You can know more about them on their website.