Nigeria Ranked Ninth Most Investable African Country in 2024

Nigeria has been ranked as the ninth most investable country in Africa in 2024, according to the latest “Where to Invest in Africa” report by Rand Merchant Bank (RMB).

The report, which offers a comprehensive assessment of investment climates across the continent, awarded Nigeria a score of 0.163 based on four key pillars: economic performance and potential, market accessibility and innovation, economic stability and investment climate, and social and human development.

In this year’s rankings, Nigeria was placed behind Seychelles, Mauritius, Egypt, South Africa, Morocco, Ghana, Tunisia, and Senegal. Algeria rounded out the top ten.

The report provides a nuanced analysis of Nigeria’s investment climate. While the country has long held the position of Africa’s largest economy by GDP, it now ranks third after a significant currency devaluation. Despite its economic size, Nigeria’s overall investability is tempered by various factors, leading to its ninth-place ranking.

“Nigeria boasts $375 billion a year in GDP and the continent’s largest population—nearly 220 million people,” the report notes. “However, this is countered by a middling score for GDP per capita, placing it just 15th in our model. Economic complexity also presents a significant challenge, as Nigeria’s reliance on oil exports is evident in its 29th position for economic complexity. Petroleum and crude oils account for nearly 70 per cent of its trade flows.”

The report also highlights Nigeria’s politically challenging environment, which can be daunting for investors. However, it acknowledges the country’s progress in creating a more conducive business environment. Nigeria’s position on the World Bank’s Ease of Doing Business index improved from 169th out of 190 countries in 2016 to 131st in 2020, reflecting efforts to enhance its investment appeal.

Despite the challenges, Nigeria was listed among the “Highflyer” countries in the report, a category that includes large, well-established economies offering stability and a range of investment opportunities. This group also features South Africa, Egypt, and Ethiopia. The report categorizes other African nations into groups such as “Cleared for Take-off,” “People Potential,” “Global Connectors,” and “Low-Base Boomers,” each representing different growth trajectories and investment risks.

Isaah Mhlanga, Chief Economist at RMB, elaborated on the complexity of analysing Africa’s diverse markets. “The richness of Africa’s diversity makes fully analysing its nuance and contrast a challenging task, but an important one when it comes to understanding the varied markets that make up this vast regional economy,” Mhlanga explained. “The 2024 RMB Where to Invest in Africa report aims to develop a balanced, robust and actionable view of the drivers, challenges, and opportunities that characterise each of the 31 African markets included in the analysis.”

As Nigeria continues to navigate its economic and political landscape, the report underscores both the opportunities and hurdles that define its place as a leading investment destination in Africa.