From Business Day Live
While South Africa remains the most attractive corporate investment destination in Africa, Nigeria is nipping at its heels and may overtake it as soon as next year, according to a new survey.
Nigeria has moved into second place, from third last year, overtaking Egypt which is now in third position despite its continuing political upheavals. This is according to the Rand Merchant Bank’s (RMB’s) annual ” Where to Invest in Africa: A guide to corporate investment” report.
The report places South Africa 33rd in the overall world rankings — its worst position ever. Nigeria, on the other hand, has improved 35 places in the past decade to rank 38th in the world index.
The researcher and co-author of the guide, Celeste Fauconnier, said the gap between the two African giants was narrowing because Nigeria was “doing well” while S A was “stagnating”.
South Africa is placed second last in comparison with its fellow Brics (Brazil, Russia, India, China, South Africa) economies. China is ranked first, India eighth and Brazil 27th with Russia in last place at 34th.
Nigeria could replace South Africa in top place in the next two to four years, or even sooner, if the revisions to gross domestic product (GDP) under way see the size of the former’s economy adjusted upwards as much as 40%. This would put the West African country close to South Africa’s GDP of $384bn.
Nigeria’s GDP is now $268.7bn, according to the World Economic Forum (WEF).
Nigeria’s growth rate forecast at 6%-7% a year for the next five years, compared with South Africa’s forecast of 2%-3%. Therefore, the West African powerhouse could overtake South Africa as the continent’s largest economy by as early as next year.
Nigeria’s population of 162.5-million is more than triple that of South Africa’s 50.6-million, adding to its attraction.
Read more at bdlive.co.za