Page 16

AFRICA MACRO surpassed official development assistance inflows (in the form of aid). It should be noted that this estimate understates the true amount of remittances as it is compiled from official banking sources and does not reflect unofficial methods of sending money. According to World Banks estimates, the amount of informal remittances could be as high as the amount of formal remittances. The World Bank estimates that 30 million Africans have migrated to other African countries or to countries outside of Africa with 9.0% of these going to France, 8.0% to the Ivory Coast, 6.0% to South Africa, 5.0% to Saudi Arabia and around 4.0% each to the US and the UK.

South Africa and Botswana both have per capita incomes that are roughly similar to Malaysia’s, while Gabon’s is higher than Mexico’s. Fueled by high oil prices and increased oil production, Angola’s per capita income is now on par with China’s. The pace of economic catch up has been remarkable. In 2000, it was 38.1% below China’s. Even some countries that are widely perceived to be dysfunctional, such as The Republic of the Congo, actually have a higher per capita income than Indonesia and Peru. Ease of Doing Business has improved In its annual Ease of Doing Business Survey for 2011, the World Bank included a study on changes in the business environment over the last five years in 174 nations. Of the 15 countries that made the largest gains in making their regulatory environment more favorable, six were African countries: Rwanda (in second place), Burkina Faso (in fourth place), Mali (in sixth place), Ghana (in eighth place), Mozambique (in twelfth place) and Egypt (in thirteenth place). According to the Wall Street Journal , and the Heritage Foundation 2011 Index of Economic Freedom, Rwanda was the “most improved country” in the world for reductions in barriers to doing business. In its annual Ease of Doing Business Survey for 2012 the World Bank Joab’s Technologies and Research, Natu Court Flat B.

ANALYSIS AND STRATEGY

indicated that of the top 10 spots for countries that made the largest gains in the past year in making their regulatory environment more favorable five were African countries: Morocco (in first place), Sāo Tomé and Principe (in fourth place), Cape Verde (in joint fifth place), Sierra Leone (sixth place) and Burundi (seventh). World Bank Index: Ease of Doing Business

Source: World Bank The AfDB 2011 Development Effectiveness Review, indicated that, “For the last quarter of the 20th century, Africa’s economic growth barely kept pace with its population increase. Then, from the late 1990s, Africa suddenly surged ahead, with growth accelerating to 6% and more in the mid- to late-2000s, exceeding the world average. This was due in no small part to the rise of China and other emerging economies, whose strong demand for raw materials was a boon for the resource-rich African continent. But the acceleration in growth was more than a resource boom. African governments made serious efforts to restore macroeconomic stability, tightening their belts, trimming their foreign debt and taming inflation. They introduced microeconomic reforms to stimulate the market by reducing trade barriers, cutting corporate taxes and strengthening regulatory systems. All of a sudden, Africa became an attractive destination for foreign investment, with telecoms, banking, retail and construction all developing rapidly.”

Page 16 of 104

Equity Research in Africa, Like an Electric Train Africa is picking up, a True Emerging Market  

Economic analysis of Africa as a whole, as well as of particular countries and sectors, with special regard to their potential as investment...

Equity Research in Africa, Like an Electric Train Africa is picking up, a True Emerging Market  

Economic analysis of Africa as a whole, as well as of particular countries and sectors, with special regard to their potential as investment...

Advertisement