The worlds narratives of Africa as cul-de-sac in terms of economic contribution to global growth has since taken a new and positive turn. Africa is now the rising sun for global investments. In view of this, discerning minds in business and investment arena are now jostling for a space in the highly profitable African market. For future investment expansion, Africa market is the hot spot as all economic sectors are yearning for development and growth. At Euroafricaasia, we are here to ensure that your investment plans into Africa from all corners of the Continent is accorded a smooth sail. With highly analytical surveys by some of the worlds business consulting firms like Ernst & Young on business opportunities in Africa, investors can be rest assured that their investments are up for high and sustainable yields.
Measuring potential and progress: the Africa Attractiveness Index
To support investors in adapting to a more uncertain environment, and to assess variable opportunities and risks across the continent, we have developed a tool that provides a balanced set of shorter- and longer-term-focused metrics. This tool – the AAI – helps to measure both likely resilience in the face of current macroeconomic pressures, as well as progress being made in critical areas of longer-term development, namely governance, diversification, infrastructure, business enablement and human development. Our initial observations of the overall AAI results include the following: Despite macroeconomic challenges (and a low-growth environment), South Africa still outperforms most other African economies due to relatively high scores across every other dimension (partly a reflection of the fact that the South African economy is more developed than any other African economy). • Kenya and Côte d’Ivoire benefit from strong economic growth performance and prospects, with both performing moderately well in terms of infrastructure and business enablement. • Botswana, Mauritius and Rwanda, although small markets, have all got a strong track record in areas of business enablement, social development and economic management, and perform relatively well. • The North African countries of Egypt, Morocco and Tunisia, as well as Ghana, in West Africa, remain under some pressure economically, but have the advantage of a relatively business-friendly environment, good infrastructure and, in the case of Ghana, a strong governance track record. • Nigeria’s relative under performance on the AAI (ranked at number 15 overall) is perhaps somewhat surprising; while the Nigerian economy ranks as one of the most resilient in Africa, lower scores on the business enablement, governance and human development pillars are reflected in the overall ranking. • Similarly, other high-growth economies like, Tanzania, Uganda and Ethiopia, are all ranked in the top 10 in terms of macroeconomic resilience (with Ethiopia at number 1), but are also relative under performers on other longer term focused dimensions. It is important to recognize that this kind of indexed ranking does not provide a definitive assessment of any of these markets; there are obviously no absolute answers in searching for market potential. In reality, there will be different answers for different organizations and investors with different priorities; and as priorities change over time, so will the answers. The AAI can, however, provide a useful starting point for analysis and enable strategic dialog on growth priorities, risk appetite and investment criteria.
EY’s AAI country ranking: 1. South Africa 2. Morocco 3. Egypt 4. Kenya 5. Mauritius 6. Ghana 7. Botswana 8. Tunisia 9. Rwanda 10. Côte d’Ivoire (Ivory Coast) 11. Senegal 12. Tanzania 13. Uganda 14. Ethiopia 15. Nigeria 16. Algeria 17. Zambia 18. Namibia 19. Benin 20. Mozambique Measuring potential and progress: the Africa Attractiveness Index 9
Source: Ernst & Young, 2016(Africa attractiveness program Navigating Africa’s current uncertainties)