Nigeria has risen four places in Bloomberg Economics’ 2026 investment risk ranking for 19 African countries, recording the biggest improvement among the markets assessed.
The country’s improved position — from 12th in 2025 to
eighth in 2026, reflects stronger economic and fiscal conditions as well as
reduced external vulnerability, according to the second edition of Bloomberg
Businessweek’s Investor’s Guide to Africa, published on Monday.
The ranking indicated that Nigeria’s four-place rise was the
biggest improvement in 2026, while Botswana dropped two places as its growth
outlook deteriorated.
South Africa, which topped the ranking in 2025, dropped to
second place, while Mauritius moved into the top position.
Bloomberg Economics said the countries were assessed across
five areas that could influence investment returns: economic strength, fiscal
strength, institutions and governance, infrastructure, and external
vulnerability.
The assessment used indicators like economic growth, debt,
political risk, and foreign reserves to determine the countries’ relative risk
scores.
Bloomberg said Africa was already experiencing an investment
boom before the US and Israel went to war with Iran in 2026, but the conflict
has increased the appeal of African industries by highlighting the risks of
overreliance on the Middle East for energy, fertiliser, and global trade
routes.
The report said critical minerals and data centres remain
among the continent’s major investment opportunities, while fertiliser and
transport infrastructure have emerged as new areas of interest.
It cited increased investment commitments across the
continent, including China’s $33.5 billion commitment to the region in the
first half of 2026 under its belt and road initiative.
Kevin Latter, senior country officer for sub-Saharan Africa
at JPMorgan Chase & Co., said risks vary substantially across countries and
regions.
According to the report, there is a growing interest from US
companies in Africa’s critical minerals, which are used in technologies
including electric vehicles, semiconductors, and artificial intelligence
infrastructure.
“The Africa growth opportunity is now large enough to matter
to global investors. The substantial capital required to support this growth
comes precisely at the time that global capital is searching for new sources of
growth,” Latter said.
Bloomberg Economics said its ranking is intended to provide
an indication of where investors may demand a higher premium for taking on
risk.
The publication said the 19 countries assessed represent
about one-third of Africa, with two-thirds among the continent’s largest
economies and the remainder selected for characteristics such as commodity
reserves, established financial hubs and business tourism.
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