CHAPTER 1. The Services Sector in Africa: Emerging Trends
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cent of output. The shares of these services categories in total services in Africa also mirrored the shares observed in developing economies. The wholesale trade, retail trade, restaurants and hotels subsector contributed more than 25 per cent to output in the Gambia and Sao Tome and Principe during the period 2009–2012. The transport, storage and communications subsector accounted for more than 25 per cent of output only in Djibouti, a major services exporter, reflecting the economic importance of its port services to neighbouring landlocked countries and its strategic location close to the Suez Canal. The other activities category represented more than 40 per cent of output in Lesotho, Namibia, South Africa and Seychelles. In countries where the services sector is already a major contributor to GDP and exports, an important policy question is how to use the sector as a launch pad for creating further employment and delivering on inclusive growth and sustainable development. This requires understanding the constraints of the sector in order to enhance its competitiveness, as well as identifying opportunities for optimizing backward and forward linkages between the services sector and other sectors that have a potential for growth and are critical for economic development. During the period 2009–2012, 21 African countries had a share of services in output greater than 50 per cent. As shown in table 1, during the period 2009–2012, the share of services in real output accounted for more than 50 per cent on average in 21 African countries (excluding South Sudan). Seychelles was the most services-dominant economy (80 per cent), followed by Djibouti, Mauritius and South Africa. However, of the 21 countries, only the following eight — mostly relatively small countries dependent on travel and tourism services — were dependent on the exports of services: Cabo Verde; Djibouti; the Gambia; Madagascar; Mauritius; Rwanda; Sao Tome and Principe; and Seychelles. In most African countries where the share of services in real output was above 50 per cent, the services sector was mostly domestic demand-driven rather than exports-led. Although the Comoros, Ethiopia and Liberia were classified as services exports-dependent during the period 2009–2012, the share of services in output in these countries did not exceed 50 per cent. The least services-dependent economies were Equatorial Guinea, Liberia, Angola, the Congo, Chad and Libya, all of which, with the exception of Liberia, are among the top eight oil-exporting economies in Africa. Equatorial Guinea was the only country with a share of services in output of less than 5 per cent. From the