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Nigeria Ranked 17th in Attractiveness Index Survey



  • 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.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.


Global Deal Activity Down by 4.5% in October 2020



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A total of 6,304 deals were announced globally during October 2020, which is a decrease of 4.5% over the 6,598 deals announced during September, according to GlobalData, a leading data, and analytics company. An analysis of GlobalData’s Financial Deals Database revealed that the deal volume during October remained below the monthly average of Q3 2020.

Aurojyoti Bose, the Lead Analyst at GlobalData, comments: “After demonstrating growth for four consecutive months, the deal volume shrank in October. The decline in deal activity could be attributed to inconsistencies across different regions. The APAC region remained a weak spot, while deal activity remained mostly flat in North America, and the Middle East and Africa (MEA) region witnessed growth in deal activity.”

North America attracted the highest number of investments, followed by APAC, Europe, the MEA, and South, and Central America.

The uncertain global economic landscape lowered the deal volume in October for major markets such as the US, Germany, Australia, France, India, and China compared to the previous month. On the contrary, the UK, Japan, South Korea, and Canada saw growth of 15.6%,14.9%, 3.8%, and 2.2%, respectively, in October as compared to September’s deal volume.

Bose continued: “Most of the deal types witnessed a decline in volume during October compared to the previous month. Private equity, equity offerings, venture financing, debt offerings, and partnership deals volume decreased by a respective 2.4%, 9.1%, 9.8%, 14.6%, and 24.6% – while the deal volume for mergers and acquisitions (M&A) increased by 7.2%.”

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Japaul to Invest in Chinese Firm H&H to Deepen Mining and Exploration Business



Japaul Gold & Ventures Plc (Japaul), formerly known as Japaul Oil and Maritime Services Plc, announced it has gotten approval in principle from H&H Mines Limited to invest in or acquire shares in the company once it concluded its fundraising exercise.

According to a statement released through the Nigerian Stock Exchange (NSE), H&H Mines Limited has several licenses, which include two major Mining Leases for 25 years renewable.

The statement noted that extensive exploration has been done on the Mining properties and the last lap of the exploration works is core drilling. This, it said will allow Japaul knows the measured Minerals Reserve contained in the Mine, which it claimed contain Gold, Silver, Lead, Zinc, etc.

Japaul further explained that the need to get the drilling done was what led H&H Mining to engage the services of Xiang Hui International Mining Company Nigeria.

“Since Japaul will eventually be part of H&H Mines Limited, it was necessary that Japaul is carried along on the kind of Contract of Drilling to be entered into, and that was why the signing of the Drilling Contract between the Chinese Company and H&H Mines Limited was concluded at Japaul’s Head Office,” the company stated.

The drilling is expected to be concluded in the next 12 months and within this time, Japaul is expected to have concluded the Fund Raising and formalise her involvement in the Mining.

The company added that Canadian reports revealed that there are huge gold, silver, lead, etc deposits, but it is drilling that will show the actual reserve.

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Africa Investment Forum (AIF) Rescheduled to Hold in 2021 – AfDB




Investment Forum to Now Hold in 2021 in a Bid to Curb Possible Second Wave of COVID-19  

The Africa Investment Forum scheduled to hold in November 2020 in Johannesburg, South Africa has been rescheduled to hold in2021 as a result of the ongoing global health pandemic.

This announcement was made in a statement by AfDB on Wednesday. The African Development Bank (AfDB) and the Africa Investment Forum founding partners agreed to the postponement of the annual three-day investment market place.

Considering the negative effect of Covid-19 on the global economy, agreement by the two bodies was made after a careful assessment of the impact of COVID-19 on global travels, investments, observing the social distancing rules and curbing the likely possible risk of a second wave.

In the statement, the bank stated that through the forum innovative digital platforms, it would track investments, source for new deals, progress on financial closure of transactions and other existing deals.

“At the 2019 Africa Investment Forum, 57 deals valued at $67.7bn were tabled for discussions. Fifty-two deals worth $40.1bn secured investment interest.

“In July this year, the AIF Founding partners pledged to strengthen strategic partnership engagement and commitments for Africa Investment Forum Market Days 2021, to help ‘reboot investments in Africa.’ They underscored the need to boost local manufacturing while leveraging the continent’s vast resources to unlock investment.”

In the statement, Africa Investment Forum objectives are achieved through the forum’s four pillars; Closing, Connecting, Engaging and Investment Tracking.

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