Nigeria tops Africa's investment index   
Written by Omoh Gabriel with agency reports     
Thursday, 19 February 2009 

Nigeria has been described as a future investment destination in Africa, according to a survey report released in London yesterday. The survey report conducted by Business Consultancy African Rainbow's Star of Africa index, though scored Nigeria low on corporate governance, however, noted that the country's potential were huge and saw it on top of the table of future investment destinations on the continent.

According to the report, "Nigeria also scored poorly for corporate governance but its potential for infrastructure expansion in electricity, water, information technology and communications as well as its status as Africa's most populous country were enough to propel it to the top of the list.

"Rising oil prices had made Nigeria a favoured investment destination but as the oil price slumped in recent months, the government has imposed capital controls as the currency fell leaving investors concerned that they might not get their money out," he said.

Ms. Katharine Pulvermacher, Chief Executive Officer of Rainbow, said such events were covered under "corporate governance" and that different investors would have different tolerances for risk and reward. Some investors would view corporate governance as more important than others," she said.

Nigeria and Ethiopia topped the new index of African potential investor destinations on Wednesday, with the survey organisers saying the continent offers good potential growth even against the global economic crisis.

"The world's poorest continent had seen an investment boom in recent years but flows into the region are seen drying up as the global financial crisis and falling commodity prices take the shine off what were seen as promising frontier markets.

Business Consultancy African Rainbow's Star of Africa index ranks 53 African countries in terms of their investment potential in various fields, with its creators arguing that potential growth in energy, water and communications consumption could amply reward investors taking the risk.

"It is for investors to make sure they don't miss a trick by overlooking a country they would otherwise have missed," said Pulvermacher.

"Africa is going to overtake the Middle East to become the second fastest growing region in the world after emerging Asia. It will be affected by the global financial crisis but it is much less exposed than many places."

South Africa, Mauritius and Tanzania took third, fourth and fifth places respectively.


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