Fidelity bank banner Bayelsa State banner
Top 5 business risks for West Africa

By News Express on 19/12/2017

Share on facebook Yahoo mail icon Gmail icon Share on Google+

Views: 734


Militancy and political uncertainty remain key risks for businesses in West Africa 2018, according to specialist global risk consultancy Control Risks in their annual political and security risk forecast ‘RiskMap’ released on Monday.

It identified the following as the key risks facing businesses in West Africa in 2018:

Terrorism and militancy: Business assets and personnel in West Africa will remain vulnerable to attacks by transnational or domestic militant groups. In particular, al-Qaeda and its affiliates will continue to pose a threat to operators in the Sahel, while the oil and gas industry in Nigeria’s Niger Delta will remain exposed to attacks by domestic militant groups. Failure to resolve the underlying political and socio-economic grievances at the root of these movements will see the threat persist in 2018.

Irregular regulators: As countries in the region, notably commodity-dependent economies, face growing fiscal pressures, operators are likely to see regulatory bodies increasingly act as revenue-generating bodies, strengthening local content provisions, introducing stricter fiscal terms, reviewing contracts or erratically imposing fines in companies in the hope of boosting state finances. This will periodically give rise to commercial disputes, legal challenges, and the need for businesses to engage with government stakeholders.

Political instability: Protracted political and socio-economic grievances will continue to fuel popular discontent and a desire for regime change in parts of the region. Cameroonian President Paul Biya’s re-election bid amid a continued crisis in the Anglophone regions will exacerbate tensions, while Togolese citizens will continue to protest for the end of the 50-year Gnassingbé dynasty. Protests will pose security threats to businesses, while regime changes would prompt major institutional changes and complicate engagements for operators.

New sectors, new risks: From Senegal’s offshore potential to Nigeria’s embryonic mining sector, some countries in West Africa will be making forays into previously-undeveloped sectors in 2018. Prospective investors need to monitor closely how government’s ability to oversee these sectors evolves and what the associated risks around these projects become.

On-going operational risks: Many of the major risks and challenges businesses face in West Africa are the on-going practical impediments to day-to-day operations. Shortages of or difficulties in sourcing fuel, foreign currency, equipment and skilled labour; the infrastructure deficits that persist in the vast majority of the region, such as in electricity and transport, will continue to mean higher costs, higher demands on management resources a tougher capital-raising environment, and greater uncertainty for businesses than in other regions.

Many countries in Africa, Nigeria and Cameroon among them, face the prospect of what could become a sovereign debt crisis, a decade after they followed Ghana’s lead in entering the international bond market. The problem is driven by high levels of external debt, persistent uncertainty over the recovery of commodity prices to fund repayments, and borrowing to fund recurrent expenditure. Countries dependent on oil revenues are particularly vulnerable to ballooning debt in 2018.

In Nigeria and Ghana, plans to borrow heavily to finance long-term infrastructure projects will not generate sufficient revenues in the coming year to finance debt repayments. Amid rising inflation and muted oil prices, Nigeria’s debt servicing payments – which in 2016 doubled to 66% of total revenues – are likely to rise further, placing extreme strain on an already stretched budget. With the government of President Muhammadu Buhari well over halfway through its term, yet to fulfil many of the promises that brought it to power and already entering campaign mode, businesses in Nigeria will remain acutely sensitive to political and operational instability in 2018.

Control Risks’ Senior Partner for West Africa Tom Griffin comments: “2017 has been a tough and turbulent year for businesses in the region, however with Nigeria exiting recession, and foreign exchange shortages easing, we see a strong improvement in investor sentiment emerging. Another major engine of growth will be Cote d’Ivoire, where economic expansion is projected at around 7% next year. There will be only a handful of elections in the region in 2018, meaning continuity will largely prevail with policy decisions having the biggest impact on the business environment.”

“In Nigeria however, although presidential elections are next slated for 2019, campaigning has already started. The uncertainty that generates, as well as the need for cash that an election brings, mean that political instability and regulators whose actions will be difficult to predict remain among our top risks for businesses in the year ahead.”

Source News Express

Posted 19/12/2017 12:22:09 PM

 

Share on facebook Yahoo mail icon Gmail icon Share on Google+


 

CLASSIFIED ADS

REVEALED: 3 natural ways to get stronger erections, last 25 minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

 

You may also like...
Kano DPR seals 39 filling stations

Nigerian doctors demand information about true state of...

Pastor attacks RCCG General Overseer Adeboye, declares him...

34 Muslim countries unite to fight terrorism

Queen Elizabeth to vacate Buckingham Palace

Senators shower accolades on new Senate Leader Ahmed...

EFCC officials not reliable when it comes to...

Obiano, wife praise Nigerian women

Senate Committee threatens to revoke port concession agreement...

Buhari sacks DGs of 23 federal agencies, appoints...

Protests: Osinbajo commends Police, promises end to recession...

ABCON backs CBN’s forex market initiatives

 

Latest News Nigerian detainees cry out from Osama prison •Send SOS to Buhari, Adeboye, TB Joshua, UN, others Defection: PDP gives Saraki, Dogara, Tambuwal, Kwankwaso, others two-week deadline We’ll unmask evildoers in Igboland in 2019 — Victor Umeh •Says Okorocha a political error US firms lament ‘pervasive corruption’ in Nigeria PDP moves to change name •Sets up committee 2 Ex-Reps, 2,000 followers defect to APC in Akwa Ibom Herdsmen killings: Miyetti Allah leaders have questions to answer — Gowon 2019 tears Kaduna APC apart •Hunkuyi, Sani, others plot el-Rufai’s fall PDP will win Adamawa in 2019, says Atiku Tension in Rivers over rumour of dead cows IMF warns world leaders, says tariffs will hurt global economy Mob lynches Muslim man transporting cows in India

 

Most Read NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (363,823 views) Nigerian female sex addict opens up, says ‘I like it with both men and women’ (359,309 views) Shameless Genevieve Nnaji exposes breasts in public (287,733 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (236,077 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (215,491 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (213,026 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (187,174 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (169,157 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (156,614 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (153,379 views) Lagos plane crash: Journalist releases victims’ names (148,158 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (139,241 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (52) Business & Economy (3,364) Business Verdict (48) Columnists (890) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (516) Features (616) Global Business Monitor (286) International (2,159) Interview (158) Live Commentary (28) Love Matters (127) News (37,352) Opinion (1,024) Pidgin (10) Politics (5,646) Religion (790) Sports (1,613) Stock Watch (33) AMA & Al Jazeera Global Update

 

CBN banner

Firstmobile banner

 

 

NEWS EXPRESS TV

Nigerian detainees send SOS from Osama prison

 

APO Group Partner

 

 

CLASSIFIED ADS

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement