NewsExpress advert FCMB banner Fidelity bank banner NewsExpress advert
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: 610


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 25minutes on bed, and increase manhood size without using drugs. Also, Natural Prostrate Enlargement Remedy.. Get In HERE...

 

You may also like...
Niger Delta Avengers alleges genocide plans, halts hostilities...

Knife-wielding men kill 27 and injure 109 in...

Buhari warns against bribery and extortion during police...

Senate and its basket of empty probes, By...

Jammeh declares Gambia an Islamic republic

Okowa to commission 15 roads in Asaba

Life of Daily Independent’s Abuja Bureau Chief detained...

MY CLOSE SHAVE WITH DEATH —Ex-CAN President opens...

MASSOB attacked Enugu Govt. House? You’re suffering from...

NAF Ground Training Command concludes arrangement for 2-day...

El-Rufa'i appoints Amirul Hajj, saves N221m from sponsorship...

Okorocha cuts working days in Imo to 3...

 

Latest News Reps summon Buhari over endless killings, pass vote of no confidence on Service Chiefs Court nullifies change of election sequence FG to blame for Benue Catholic Church massacre — Intersociety CAN declares peaceful protest, prayers for freedom of abducted Christian girl Leah Sharibu US militants declare war on foreigners, Muslims Dino Melaye transferred to National Hospital, admitted in Intensive Care Unit Imo Guber 2019: Plot to frame up Madumere thickens Ex-Finance Minister Aganga appointed Queen’s Commonwealth Trust Adviser MTN moves closer to $500m public offer N805m Fraud: Sen. Nwaoboshi arraigned, remanded in prison Drama, as Innoson shuns arraignment for fourth time Coalition scores Buhari high on anti-corruption war.

 

Most Read Nigerian female sex addict opens up, says ‘I like it with both men and women’ (339,941 views) NUDE PHOTO OF OMOTOLA JALADE-EKEINDE surfaces online (335,024 views) Shameless Genevieve Nnaji exposes breasts in public (268,044 views) Finally named: The full list of friends of Nigerian female sex addict who prowled Facebook (220,403 views) Igbo scholar disgraces Femi Fani-Kayode •Demolishes claims on Igbo/Yoruba history with facts and figures (202,227 views) OLUMBA OLUMBA OBU (the one who called himself God) IS DEAD (198,327 views) Breaking News: POPULAR REVEREND CONVERTS TO ISLAM in Kaduna (Nigeria) (173,029 views) OBJ’s son reported dead in Lagos plane crash •Names of more victims emerge (155,384 views) THE FINAL DISGRACE: Igbo scholar unleashes more facts about Igbo/Yoruba history, finishes off Femi Fani-Kayode with second article (147,233 views) My wasted years in Olumba Olumba Obu’s Evil Brotherhood (139,203 views) Lagos plane crash: Journalist releases victims’ names (137,027 views) Gunmen kill ASP, 2 other police officers in vain bid to kidnap Rivers PDP chieftain (129,689 views)

 

Categories Advertorials (3) African Press Organisation (81) Art & Literature (36) Business & Economy (3,075) Business Verdict (40) Columnists (838) Complaints & Requests (94) Enterprise & Opportunities (207) Entertainment (485) Features (569) Global Business Monitor (264) International (1,929) Interview (149) Live Commentary (28) Love Matters (116) News (34,753) Opinion (917) Pidgin (10) Politics (4,817) Religion (724) Sports (1,485) Stock Watch (28) AMA & Al Jazeera Global Update

 

Firstmobile banner

 

 

NEWS EXPRESS TV

Boko Haram commanders surrender

 

APO Group Partner

 

 

CLASSIFIED ADS

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

GOCOP Accredited Member

GOCOP Accredited member

 

 

Africa Media Agency and Al Jazeera

Advertisement