- ‘Kenya, Ethiopia Compete With Nigeria for Investment’
Nigeria, South Africa and Egypt are facing increasing competition for investment from Kenya and Ethiopia, a newly released Africa Risk-Reward Index, has said.
The Africa Risk-Reward Index provides investors with a synthesis of risks and opportunities across the African continent. The Index was developed by Control Risks and Oxford Economics.
Control Risks is a global risk consultancy, which helps organisations in the world to understand and manage the risks and opportunities of operating around the globe, particularly in complex and hostile markets.
Oxford Economics is a world leader in global forecasting and quantitative data analysis, acting as a key adviser to corporate, financial and government decision-makers, and thought leaders.
The report showed that Africa’s economic giants including Nigeria, South Africa and Egypt have been stumbling recently.
It stated that economic downturn and militancy in Nigeria, rising security risks and political instability in Egypt, and escalating political risks in South Africa led to doubts whether the balance between risks and opportunities in these markets was still favourable for businesses.
The report added that despite recent recovery in Nigeria and South Africa, Kenya and Ethiopia might soon outshine these economic giants in the competition for investment.
Giving more insights, the report put Nigeria’s reward score at 6.0 (out of 10), ahead of South Africa and Egypt. It stated that Nigeria’s charms, however, fade against a risk score of 7.3 (out of 10), as President Muhammadu Buhari’s government struggles through its first term.