Connect with us

Investment

Nigeria Ranked 17th in Attractiveness Index Survey

Published

on

NIMASA
  • Nigeria Ranked 17th in Attractiveness Index Survey

EY’s (formerly Ernst & Young) Africa Attractiveness Index (AAI) for 2016 has ranked Nigeria 17th among 25 countries in terms of choosing a location to invest in the region in 2017.

The latest index showed that the country fell by two points, compared with the 15th position which it was placed in 2016.

The EY revealed this in its Attractiveness Programme Africa report titled: ‘Connectivity Redefined.’

Nigeria only ranked above Cape Verde, Cameroun, Ethiopia, Burkina Faso, Mozambique, Madagascar, Mali and Benin.

On the other hand, Morocco was ranked first in the survey and was closely followed by Kenya, South Africa and Ghana, in that order.

Also, the report showed that the amount of foreign direct investment (FDI) projects in Nigeria eased by 3.8 per cent in 2016 to 51, compared with the 53 projects that were executed in the country in 2015.

It attributed this to the economic recession which the nation slipped into last year. With the plunge in crude prices, Africa’s largest oil exporter has been hit by a scarcity of foreign exchange, impacting businesses that were already grappling with issues, including insufficient power supply and complexity in paying taxes.

According to the report, Nigeria’sbusiness environment presently needs urgent improvement, considering the country’s 169th ranking on the World Bank’s Ease of Doing Business Index 2017. The EY Africa Attractive Index (AAI) 2017 measures the FDI attractiveness of 46 African countries (with the entry of 3 new countries), constructed on the basis of six broad pillars that act as key determinants for choosing a location to invest.

“On a more positive note, the sheer size of the Nigerian market, and its diversification initiatives have led to a significant shift in the nature of FDI to the country. Should progress be made on various dimensions of the AAI, notably business enablement, governance and human development, Nigeria remains well- placed to become the largest FDI market in Africa over the next decade,” it added.

But the report pointed out that while foreign investors still favour the key hub economies in Africa, a new set of FDI destinations were emerging with some of the Francophone and East African markets of particular interest to us.

Furthermore, it pointed out that in a context of uncertainty, the opportunities for growth and investment were a lot more uneven than they used to be, stating that as such, making investment choices on the basis of fact-based analysis were more important than ever.

“Looking at Africa, 2016 marked the worst year for economic growth across sub-Saharan Africa in over 20 years. However, this overall slowdown in growth masks a significant variance in economic performance across different African economies. Even as SSA’s three largest economies – Nigeria, South Africa and Angola – saw sharp downward revisions in growth forecasts, a diverse group of the second- tier economies in Africa — including Cote d’Ivoire, Senegal, Ethiopia, Kenya, Tanzania, Mozambique and Egypt – are expected to sustain high growth rates over the next five years.

“Low growth was largely driven by external factors, particularly oil prices, which meant two of the largest three economies in SSA, i.e. Nigeria and Angola, had to accept lower receipts for their exports. As a result, both economies fell into recession, with Nigeria hit particularly hard, as the nation dealt not only with reduced terms of trade, but with lower production levels as a result of domestic insurgency.

“At the other end of the spectrum, Cote d’Ivoire remains one of the fastest growing countries globally, although once again, highly dependent on commodity (cocoa) prices, and its ability to manage internal conflict. Staying in West Africa, Ghana’s prospects are also looking increasingly promising, with a newly elected administration promising to manage the public purse of Côte d’Ivoire”

According to the report, “However, there are a number of risks that need to be managed. Countries with high and rising twin fiscal and trade deficits remain at risk of currency devaluation. This becomes all the more evident where national debt levels are either rising too rapidly or are already at high levels.

“Mozambique is the most notable example, although this has not impacted its growth outlook. Africa remains on track to be a US$3 trillion economy. To achieve that will require accelerating diversification initiatives thereby boosting resilience to external shocks,” it added.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

Continue Reading
Comments

Investment

Saudi Arabia Aims for $80 Billion Tourism Investment to Fuel Vision 2030 Goals

Published

on

tourism

Saudi Arabia is embarking on a bold venture to attract up to $80 billion in private investment into its burgeoning tourism industry, a move pivotal to realizing its ambitious Vision 2030 objectives.

Tourism Minister Ahmed Al Khateeb unveiled the kingdom’s aspiration during an interview in Riyadh, emphasizing the imperative role of the private sector in spearheading investment endeavors.

With plans to disburse approximately $800 billion on tourism over the next decade, Saudi Arabia is steadfast in its pursuit to diversify its economy and reduce dependency on oil revenues.

Vision 2030 outlines a trajectory for the kingdom to metamorphose into one of the world’s premier tourist destinations, targeting 150 million annual visitors by 2030, a significant portion originating from overseas.

While the government and sovereign wealth fund have historically fueled tourism development, securing substantial foreign direct investment, particularly from the private sector, emerges as paramount in expediting Vision 2030 initiatives.

The kingdom’s fiscal projections, forecasting deficits until 2026, underscore the urgency of engaging private investors to actualize the ambitious tourism blueprint.

Saudi Arabia, having welcomed 100 million tourists in 2023, predominantly domestic travelers, eyes international markets such as India, China, the UK, France, and Germany for tourist influx.

A new program launched by the Ministry of Tourism aims to streamline investment processes, potentially unlocking $11 billion in private investment, bolstering Saudi Arabia’s tourism trajectory and reshaping its economic landscape.

Continue Reading

Treasury Bills

CBN Unveils Plan to Settle N1.64 Trillion Treasury Bills in Q2 2024

Published

on

FG Borrows

The Central Bank of Nigeria (CBN) has announced its strategic approach to managing liquidity and meeting financial obligations by unveiling a comprehensive plan to settle Treasury Bills (TBs) worth N1.64 trillion during the second quarter of 2024.

This initiative, part of the CBN’s Nigeria Treasury Bills Issue programme, aims to regulate the money supply within the economy while effectively managing liquidity dynamics.

According to documents obtained by Investors King, the TBs settlement program is slated to commence on March 7th and conclude on May 23rd, 2024.

The CBN will focus on settling TBs with varying tenors, including N414.29 billion on 91 days, N43.74 billion on 182 days, and a substantial N1.18 trillion on 364 days.

The breakdown of the settlement plan reveals monthly settlements to address maturing TBs. In March, the CBN plans to settle N660.62 billion worth of TBs, followed by N292.17 billion in April and N688.3 billion in May.

Market analysts interpret this move as a testament to the CBN’s commitment to managing financial obligations and maintaining economic stability.

It provides investors with opportunities to engage in short-term financial instruments while contributing to overall liquidity dynamics.

The strategic settlement plan reflects the CBN’s proactive stance in navigating economic challenges and ensuring stability within the financial landscape.

As the apex bank implements these measures, stakeholders will closely monitor their impact on market dynamics and economic indicators, anticipating implications for investment decisions and monetary policy outlooks.

Continue Reading

Investment

China’s State-Owned Lenders Allocate $8 Billion to Revitalize Property Market

Published

on

General Images Of Residential Property

China’s state-owned lenders have committed a substantial $8 billion in loans to rejuvenate the country’s beleaguered property market, aligning with Beijing’s directives to bolster the sector.

Agricultural Bank of China Ltd. disclosed approving over 40 billion yuan of loans for real estate projects on predefined white lists, signaling a proactive approach towards supporting the housing market’s recovery.

China Construction Bank Corp. also joined the effort, extending 3 billion yuan to five property projects, with plans to greenlight over 20 billion yuan in loans soon.

Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. are among the institutions offering financing assistance, although the exact loan amounts remain undisclosed.

This initiative follows Beijing’s recent call for local authorities to enhance financing support for developers and curate lists of eligible projects.

In response, the big four state lenders pledged to meet reasonable financing demands from developers and projects identified under the coordination mechanism.

However, China’s property market faces challenges despite these measures. New home sales plummeted 34.2% year-on-year, underscoring the ongoing slowdown.

While existing home transactions surged during the Spring Festival holiday, new home sales remained subdued, prompting a cautious outlook among buyers.

The infusion of $8 billion aims to instill confidence and stimulate activity in the property sector, potentially heralding a gradual recovery amid persisting market uncertainties.

Continue Reading
Advertisement




Advertisement
Advertisement
Advertisement

Trending