Author Topic: Nigeria Has Most Difficult Business Environment, Says Survey  (Read 192 times)

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Nigeria has most difficult business environment, says survey

SOUTH African-based Omidyar Network Africa, in partnership with Monitor Group, has ranked Nigeria as the most difficult business environment in Sub-Saharan Africa.

The report which was presented to entrepreneurs, investors and government officials in Lagos, listed inadequate electricity supply, lack of access to finance and infrastructural deficiency as some of the challenges militating against entrepreneurs in the country.

The survey, which was carried out in Nigeria, Ghana, Kenya, Tanzania, Ethiopia and South Africa, showed that Nigerian banks demand higher collateral from investors than every other country in the Sub-Saharan Africa.

According to the report, 58 per cent of respondents believe that the physical infrastructure available in the country does not provide sufficient support for new and growing firms, the most negative result amongst benchmarked countries.

It noted that inconsistent electricity supply across the country has resulted in backup generators forming a key part of any business assets, albeit at significant additional operating expenses.

?In fact, only 12 per cent of respondents believe that new and growing firms can afford the costs of using the physical infrastructure available in the country. These findings highlight the impact of Nigeria?s well-documented infrastructural challenges on new business owners?, the report added.

In the survey, challenges related to accessing finance drew mixed perceptions from both the demand and supply sides.

The report stated that while many entrepreneurs bemoaned a limited supply of capital, financiers point out that many projects are not fundable.

However, a press released by the Ernst & Young Research Institute, last week, stated that Africa is becoming more attractive to investors and Foreign Direct Investment (FDI)

The statement signed by the Managing Partner of Ernst & Young Research Institute, Mr Mark Otty, said projects have steadily grown over the past five years in the continent.

According to the statement, despite a fall in project numbers from 867 in 2011 to 764 in 2012, in line with the global trend, project numbers are still significantly higher than anything that preceded the peak of 2008. The continent?s global share of FDI has also grown from 3.2 per cent in 2007 to 5.6 per cent in 2012.

It stated that despite the impact of the ongoing global economic situation, the size of the African economy has more than tripled since 2000.

?The outlook also appears positive, with the region as a whole expected to grow by four per cent for 2013 and 4.6 per cent for 2014. A number of African economies are predicted to remain among the fastest growing in the world for the foreseeable future,? its said.


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