Africa, a land of immeasurable wealth, is home to a wide range of thriving industries such as mining, oil and gas, real estate, technology and infrastructure, all major contributors to the continent’s economy. Endowed with abundant deposits of precious metals and minerals, Africa accounts for 30% of the world’s mineral reserves and two-thirds of the world’s uncultivated arable land. Furthermore, the continent’s proven oil reserves constitute 8% of the world’s total and 7% of the world’s natural gas.
According to the Where to Invest in Africa 2024 report published by Rand Merchant Bank (RMB), African countries have investment potential based on four measurable pillars:
– Economic performance and potential
– Market accessibility and innovation
– Economic stability and investment climate
– Social and human development.
The top 10 investment destinations in Africa were selected based on their overall scores derived from an average of criteria such as GDP, population, urbanization, growth structure, inflation, and many others.
Ranking Country Overall Score 1 Seychelles 0.72 2 Mauritius 0.69 3 Egypt 0.49 4 South Africa 0.33 5 Morocco 0.3 6 Ghana 0.27 7 Tunisia 0.2 8 Senegal 0.18 9 Nigeria 0.163 10 Algeria 0.158
Nigeria’s performance, below expectations given its size and GDP, can be explained by several factors, including its heavy reliance on oil, which accounts for about 70% of the country’s trade flows. This situation places Nigeria in 29th position in the report’s Economic Complexity ranking.
Similarly, the country’s unstable political climate plays a role in its 29th position in the same Complexity ranking. This instability can deter potential investors and hamper the country’s economic development.
It is essential that Nigeria works on diversifying its economy to reduce its dependence on the oil sector and foster a more stable political and economic environment to attract foreign investors. By moving towards diversifying industries and promoting transparency and good governance, Nigeria could strengthen its position as an attractive investment destination in Africa.