Nigeria Among Top Three Investment Destinations in Sub-Saharan Africa, KPMG Reports

KPMG’s latest report, ‘Doing deals in sub-Saharan Africa 2024,’ has identified Nigeria as one of the top three destinations for future investments in sub-Saharan Africa over the next two years, alongside South Africa and Kenya.

The survey of international and domestic investors shows South Africa leading with 28 percent of expected investments, followed closely by Nigeria at 26 percent, while Kenya ranks third at 14 percent. No other country in the region received more than 10 percent of investor interest.

South Africa maintains its appeal despite recent challenges with power shortages and logistics issues, drawing investors through its developed financial markets, abundant resources, and large youth population. Nigeria’s position is strengthened by its status as the region’s most populous nation and second-largest economy, combined with significant hydrocarbon production.

The report identifies key drivers for future transactions in the region:

•  Physical assets and natural resources
• Growth capital opportunities
• Attractive valuations
• IP and technology (cited by 20 percent of financial investors)

Sectoral analysis reveals strong investment prospects in specific industries:

• Mining sector leads with 71 percent interest from strategic investors
• Oil and gas following at 51 percent
• Financial investors show particular interest in mining (46 percent) and oil and gas (34 percent)

KPMG’s findings underscore the continued dominance of the region’s largest economies in attracting investment, highlighting the importance of both economic fundamentals and resource wealth in driving investment decisions.