Nigeria Ranked Fourth Most Risky Country To Invest In Africa

Nigeria ranks 7.24 based on the scale of 1-10, according to the seventh edition of the ‘African Risk-Reward Index,’ seen by THE WHISTLER.

The index captures the evolution of investment environment and risk landscape in major African markets.

The report said the risk score “stems from the economic and political risk evaluator. Each political and economic rating is assigned a default weight based on its significance in the country context and I potential impact on business.

“The reward score incorporates medium-term economic growth forecast, economic size, economic structure and demographics.”

Although, Nigeria marginally witnessed a 0.13 per cent improvement compared to previous ranking in September 2021, it is still among the top four high risk destinations.

According to the ranking, Mauritius and Botswana are the safest destinations with risk score of 3.71 and 3.81 respectively.

Africa’s biggest economy, Nigeria had in recent time witnessed a decline in both Foreign Direct Investment and Foreign Portfolio Investors due to economic challenges especially, insecurity and foreign exchange

In the reward ranking contained in the report, Nigeria also emerged fourth with a score of 5.69, down from the score of 5.77 recorded in September 2021.

Ethiopia ranks as most rewarding with 6.50 points, down from 6.76 points recorded in September 2021, while Egypt emerged second with 5.88 points in September falling 0.61 points from last year.

Cote d’Ivoire emerged third most rewarding with 5.72 points down by 0.37 points compared with September 2021.