Archive | April, 2014

Nigeria Officially Declared as Africa’s Largest Economy

10 Apr

David O. Kuranga, Ph.D.

The author is the Managing Director and Principal of Kuranga and Associates, a full-service investment, political and economic risk consultancy, and asset management firm that specializes in Africa. He is also the author of The Power of Interdependence with Palgrave Macmillan Press.

Nigeria has officially announce what many economist already knew, it has become Africa’s largest economy. At an estimate of around 510 billion, which some say is low due to inability to measure the tourism sector, it is over 100 billion dollars larger than South Africa, Africa’s second largest economy. The numbers released by Nigeria’s Finance Ministry have been independently verified and endorsed by the IMF and the African Development Bank. The announcement carries substantial significance for the global investment community. Outside of South Africa, mainstream global capital has ignored Africa and still does. There are still many asset managers and investment groups that invest everywhere in the world but Africa. With Nigeria emerging as the largest economy, the conventional trend that it was okay not to invest at all in Africa outside of South Africa will likely change over the coming years. Exposure to Nigeria and Africa will become more common among global capital investors over the next five years. When all the risks are controlled for, investment in Africa remains far below what it should be when compared to other regions. It is very clear that global investment decisions are not based entirely on economic reality especially when it comes to Africa which has 7 of the 10 fastest growing economies in the world. What Africa suffers from most, is perception. The emergence of Nigeria as Africa’s largest economy will do a lot to change this, not just for Nigeria, but for the rest of Africa outside of South Africa.

Kuranga and Associates Global Consultancy is a political and economic risk management firm and an asset manager with a principle practice area of Africa. To learn more about Kuranga and Associates go to © Copyright 2014 David Kuranga. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

David O. Kuranga; Ph.D. Managing Director
Kuranga & Associates Global Consultancy
Phone: 212.363.0936