DAVOS: CNN Money Drops Nigeria From 2016 Economy Watch List
22nd Jan. 2016
Nigeria has been dropped from a shortlist of countries to watch in 2016 according to a CNN money report.
The new list of Africa’s most promising economis in 2016 comprises of Rwanda, Tanzania, Ethiopia and Mauritius.
The weakening of the Naira and the global collapse in crude oil prices have wiped billions of dollars from Africa’s largest economy.
The whole country is feeling the effects, including Africa’s richest man, Nigerian billionaire Aliko Dangote.
Analysts say Dangote’s net worth declined by 17% over the past year to $17 billion.
This is not just a Nigerian problem. Low commodity prices and currency volatility are among the key themes plaguing Africa and its investors in 2016.
However, according to the chairman of KPMG financial advisory firm John Veihmeyer, Nigeria remains a crucial economy for investors and remains a much sexier prospect over it’s great economic rival South Africa.
“There’s a lot of concern about South Africa, it’s very flat from an economic standing point, and there are a lot of difficulties operating there.”
“The reason to invest in Nigeria is because you see tremendous long term potential and the current swings we see in commodity prices are going to look a very distant story ten years from now,” Veihmeyer said.
Most African countries have also been impacted by the slowdown in growth in China and the tightening of interest rates by the American federal reserve.
The rise of jihadist terrorism also affects countries like Nigeria, Kenya and Mali.
However, Sub-Saharan Africa is still expected to achieve growth of 3.75% in 2016, and is still home to some of the fastest growing economies in the world.
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