Fresh from having its GDP rebased, increasing it by c.89% to USD 510bn, Nigeria has also emerged as the frontier-market economy that is attracting the most attention from American and European multinationals.
The Frontier Markets Sentiment Index, created exclusively for the Wall Street Journal by Washington DC-based advisory firm Frontier Strategy Group (FSG) and touched on in yesterday’s Africa Rising, tracks the level of interest shown by major European and American multinational companies in countries across the frontier markets world. The index is based on information collected from FSG’s roughly 200 multinational clients, which include companies such as Coca-Cola, General Electric, Novartis, Dell and Akzo Nobel. “We collect data about which countries the companies are watching for potential future investment. Over time, that gives us a clear picture of their market priorities — which countries are they including in their future plans and which they are dropping,” said Matt Lasov, FSG’s global head of advisory and analytics, as he explained how the index works.
The research provides two key insights: the current state of sentiment toward countries in the frontier markets, and the change in sentiment over time. Corporate sentiment is calculated as the percentage of companies that include a particular country on their watch-list. If 50 of the 200 companies are keeping an eye on a particular country, the sentiment index score would be 25%.