By Ogova Ondego
Published December 11, 2013
If you were an investor looking for opportunities in Africa, in which country on the continent would you plant your seed?
A new survey says Nigeria will be Africa’s preferred choice to investors by about 2015 or 2017.
‘Where to Invest in Africa’, a survey by Rand Merchant Bank of South Africa that gives investors a long view of investment opportunities in Africa, has for the first time ranked Nigeria—Africa’s most populous country—above South Africa—Africa’s leading economy. The survey says that Nigeria may overtake South Africa over the next two to four years as the continent’s preferred country for investment.
Saying “the scoring gap between South Africa and Nigeria is narrowing rapidly”, analyst Nema Ramkhelawan-Bhana of Rand Merchant Bank adds that “Nigeria’s expeditious growth rates and also its growth in market size” could see it overtake “South Africa in the next couple of years.”
Nigeria, Africa’s leading oil producer, is diversifying into technology, agriculture and creative sectors.
While the economy of Nigeria is expected to grow at the rate of 6% over the next five years, that of South Africa shall not exceed 3.2%.
The investment appeal is likely to be bolstered further, reports MOFINEWS magazine, when Nigeria—for the first time in 17 years—rebases its Gross Domestic Product (GDP) at the end of 2013. MOFINEWS explains that rebasing enables countries to adjust GDP calculations for changes in the economy, including new sectors and industries.
So where does this leave South Africa?
You tell me.