A dual-framework scoring system that tells institutional investors not just whether to enter African markets — but how, when, and whether capital can exit.
Governance is the single biggest driver of investment outcomes — yet it's the only major domain without real-time data.
The ACI compresses thousands of fragmented signals — policy shifts, regulatory changes, court rulings, institutional behaviour — into a single continuously updated governance score. No annual PDFs. No insider networks. Just evidence, updated as the world moves.
Four sub-components, each scored independently, combine to produce a composite ACI score from 0–100. Higher scores indicate stronger governance conditions for investment entry.
The ERS answers the question that existing indices never ask: can capital exit? It quantifies how, when, and whether an investor can realise returns from a specific market and sector combination.
Five weighted components produce a score from 0–100. A score of 100 represents the easiest possible exit environment. Scores below 40 are classified EXIT-DIFFICULT — signalling structural barriers to capital repatriation.
Nigeria's energy sector presents a compelling entry thesis: strong IRR benchmarks, active sector reform, and growing DFI interest. But the ERS tells a different story on exit. Currency controls, shallow domestic M&A markets, and prolonged regulatory clearance timelines combine to produce an ERS of 38 — signalling that while entry conditions are improving, capital faces structural barriers to exit.
This is the intelligence gap AlgoEconomics fills. ACI alone would show a governance environment that is improving. ERS shows that exit risk remains structurally elevated — and why.