- …as Nigeria drops to 39th on Africa Prosperity ranking
For African governments to take millions of their citizens out of abject poverty and achieve real prosperity, they must deliberately pursue policies that would incentivize investments and attract investors into their economies, analysts at the Centre for the Study of the Economies of Africa (CSEA) have said.
The recommendation of the economic research experts derives from the 2019/20 Africa Prosperity Report published by the Legatum Institute, which indicated that though prosperity in Africa was at a record high, disparity between the most and least preposterous countries continued to widen.
According to the report, this development is not uniform as Nigeria, classified as an ‘in-transition economy’, ranked 39th out of 54 countries on the Africa Prosperity Index.
This drop in ranking of Africa’s largest economy was attributed to Nigeria’s increasingly worrisome weak safety and security situation, weak healthcare system and poor economic quality.
Specifically, Nigeria fell 8 positions when compared to the last index of 2016, while countries like Ivory Coast and Togo rose by 14 and 12 positions respectively.
The API report showed that strong personal freedom fosters prosperity improvement efforts and was a driver for the most improved nations.
The CSEA analysts noted that ranking countries based on more than macroeconomic indicators such as GDP per capita, is a positive development considering that the index covers inclusive societies, open economies and empowered people.
“African governments need to incentivise investments into the continent by having more stable foreign exchange rules, tax and customs rules, regulatory frameworks and visa systems, in order to experience significant improvement on all metrics,” the researchers said.
The Legatum Institute’s Africa Prosperity Report quantifies prosperity across each African country and tracks its evolution over the past decade.
By description, the institute states that “prosperity entails much more than wealth. It reaches beyond the financial into the political, the judicial, the wellbeing, and the character of a nation – it is about creating an environment in which people are able to reach their full potential.”
According to the institute, a nation is prosperous when it has an inclusive society with strong institutions, an open economy, and empowered people who are healthy, educated and safe.