Nigeria tops investment ranking; Chad and Eritrea at bottom

A new index launched by African Rainbow Consulting indicates Nigeria is the top destination in Africa for investment, as the most attractive market for potential investors and entrepreneurs. Its Star of Africa weighted index ranks each of Africa's 53 countries based on their potential growth in energy, water, communications and other fields.

Chad and Eritrea were ranked as the least appealing markets in Africa after Somalia, which has not had a central government since 1991. They received low ratings mainly for corporate governance and social capital.

After Nigeria, Ethiopia was ranked as the second best destination for investors in Africa. However, the current shortage of foreign currency has recently pushed some investors away, with some of them unable to get their money out of the country.

Ethiopia was followed by South Africa, Mauritius and Tanzania. The organization also analyzes which countries have significant risk or opportunity for successful long-term investment in electricity, internet and the water sectors including sanitation, supply and irrigation.

Africa has been experiencing an investment boom in recent years though the current global financial crisis has slowed it down.

The Star of Africa index is based on 5 key indicators:

1. Energy Index: calculates the potential market size in each country in terms of megawatt hours.

2. Water Index: outlines potential for improving access to sanitation and clean water, weighted by population size.

3. ITC Index: maps potential markets for mobile telephone and internet use, PC ownership, factoring in market competitiveness.

4. Social Capital Index: yields insight into population's health (40%), education levels (40%) and demographics (20%)

5. Governance Index: rescaled aggregate of World Governance Indicators, covering issues such as corruption, violence, rule of law and ease of doing business.

Post A Comment

* Indicates required information

Comments

12 comments for this article

<< < 1 | 2 > >>

Reverse Comment Order

Added: October 27, 2009. 06:11 PM GMT

totaly baised

i want to tell every body who read this false analysis about investment report .it is very contracting idea that while above 20 international campanies invest in eritrea for mining

sick

Alert a moderator

Added: February 19, 2009. 07:20 PM GMT

Have u really understood the index

If you are proud of being top of this index, then you really don't understand it. Have a closer look at the categories, especially number 2. It means that even after so much 'growth' in Ethiopia, most people do not have acess to sanitation and clean water, hence the potential to invest or the potential to make money from the poor by charging for what should have been their basic human right. Look at no 4, it means that current level of health and education is not adequate and therefore the need to improve it.
This index is actually a condemnation of the goverments of both Nigeria and Ethiopia.

Anonymous

Alert a moderator

Added: February 19, 2009. 02:50 AM GMT

after 17 years in power, Isaias Afewerki has made eritreans proud by opposing the american imperialists who were trying to colonize Eritrea.
Honorable President Isaias Afewerki has also made Eritrea the fastest growing economy in Africa and the magnet for investment. He has also created a good transition from mengistu's one-party system to a multi-party government. today, 66% of our population is not starving and Eritrea has the best democracy in africa. Isaias has also implemented the constitution and allowed private media and religious freedom. meles zenawi wants to colonize eritrea and meles zenawi does not recognize Eritrean independence but the amhara rebels that isaias afewerki is giving weapons to love Eritrea and they recognize eritrean independence so much that they never dream about taking asab port. At this time, 10 times less Eritrean refugees are fleeing out of Eritrea compared to the Mengistu era. Isaias is also doing a great job of bringing peace to the horn of africa by hugging ethiopia and djibouti and by supporting peaceloving moderate islamists in Somalia.

in general, Isaias afewerki has been the best leader in world history.

(*if you haven't noticed,i am being sarcastic*)

Death to Hegdef!

Alert a moderator

Added: February 18, 2009. 11:15 PM GMT

Horn of Africa could be Strong in Economy

untrue report will hurt our development in Africa. War in the horn created so many unbalance in our economy. Ethiopia has one thing is going well in her economical development which is WAR. The Meles government gets pay to go to war against Eritrea and Somailia. It is true Ethiopia does not have a plan for its own people for devolment, Education and Health care. Our Etrhiopia could have been the strongest nation in the Horn of Africa but With Malas leadership we can lay to be on top of the chart of the progress but in reality we are far behaind Eritrea, somalia and Chad. Our People need to wake up and take control of our future. Eritrea and Somailia are two nations we have to live with them peacefuly if we want to have a strong true Ethiopian leadership. Meles and his people are destroying our beloved country for thier own needs. Power to the people of Ethiopia.

Mamush(Keb)

Alert a moderator

Added: February 18, 2009. 07:37 PM GMT

Nigeria tops investment ranking

The Camel is marching and Eritrea will be where it wants to be on time.

Anonymous

Alert a moderator

Added: February 18, 2009. 04:52 PM GMT

ethiopians are dying

so why are 15 million ethiopians starving to death?? whatever company organized the ranking must be stupid or maybe bribed by meles zenawi

Saleh

Alert a moderator

Added: February 18, 2009. 04:23 PM GMT

I have just noticed that the article is displayed for political campaign. ethiopia must genuinely work to settle it's food insecurity rather than engaging in a pershing and unproductive opinions. the ethipian commentators may be from the ruling party side usually engage in advacing thier administration through lip service which has never felt on ground. eritreans are now almost have a promosing future in sealing the food aid . you just follow the suit, and thus we neighbours claim our dignity and thus investment would be on mutual relationship rather than a master and serve situation.

Anonymous

Alert a moderator

Added: February 18, 2009. 03:53 PM GMT

Weak up Eritreans. Where is the singapore, Korea, or Japan of Africa - a dream of all and our fallen heros.

Anonymous

Alert a moderator

Added: February 18, 2009. 03:47 PM GMT

it is rubish report. nigeria is the most corrupted and unsafe zone, only lucurative companies might engage in the investment and sustain thier contiunity through corrupted morals. As for ethiopia , the country was living with intensive care unit from USA, and infusioned with dollar cash flow for the last decade, and thus no parameter would be applied for its investment measurement, it is a failed country.

Anonymous

Alert a moderator