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Ethiopia Economic Growth Risk To Nigeria, Warns Expert

Osuchukwu said foreign investors would prefer to go to Ethiopia or other African countries and not Nigeria because of the difficulty of doing business in the country.

Winston Osuchukwu, Co-founder and Managing Partner at Trans-Sahara Investment (TSIC), has raised the alarm over the growth rate of the Ethiopian economy and how that might adversely affect Nigeria.

Speaking in an interview with CNBC Africa, Osuchukwu said foreign investors would prefer to go to Ethiopia or other African countries and not Nigeria because of the difficulty of doing business in the
country.

The Nigerian Investment Promotion Commission (NIPC) recently said Nigeria ranked 146 out of 190 countries on the Ease of Doing Business globally.

He also raised concern over the Africa free trade agreement which encourages an open border across African countries.

He said: “Free trade could also mean I don’t have to come to Nigeria to do business with Nigeria. I can do business with Nigeria by proxy. It (Africa Free Trade Agreement) is significant because of how difficult it is to do business in Nigeria, you will find that some of the investment that should have come into Nigeria can now go into neighbouring countries and those countries can serve Nigeria.

“The second one is, the rise of Ethiopia is actually a significant risk to Nigeria. Nigeria used to be the centre of gravity for all sub-Saharan Africa. We are the largest economy; we are the largest market out there.

“Ethiopia has opened up its economy. Ethiopia is a much more compelling economy to go to. Only good news has come out of there in terms of how they are opening up their economy. They have better infrastructures in place.”

Source: SaharaReporters

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