Nigeria, S'Africa, Ghana top development index in PwC's survey
- Written by Taiwo Hassan
NIGERIA and Ghana have been ranked top rising economies, among 10 other African countries, in respect of modal transportation connectivity and road infrastructure development. South Africa was however assessed as having the best overall performing economy, with its attractive economics, business environment, trade and logistics and transport infrastructure, although it scored an average on demographics and resources.
But in the report, Ghana, which came second, was assessed as politically stable and well connected to its neighbours, while also offering a high level of education.
Besides, Nigeria was adjudged he world's fourth fastest growing economy, driven largely by oil and gas exports.
The ranking was contained in PwC report released at the weekend.
PwC's Capital Projects and Infrastructure Solutions Associate Director, Andrew Shaw, revealed in the report that Nigeria's economic size could double within the next 10 years, should it manage the average 6.8 per cent Gross Domestic Product (GDP) growth forecast for 2012 to 2017.
The report said the Federal Government's ambitious plans to expand its infrastructure, rated in the study as average could further assist in growing the economy.
The report pointed out that a new $1.6billion deep-sea port is already earmarked at Lekki, in Lagos, while $2-billion would be invested to reconstruct 2,000 kilo metre of rail lines.
The 10 countries included in the study, completed with the assistance of Econometrix in South Africa, are Algeria, Angola, the Democratic Republic of Congo (DRC), Egypt, Ghana, Kenya, Mozambique, Nigeria, South Africa and Tanzania.
The countries were judged against one another in terms of demographics and resources, economics, business environment, trade and logistics and transport infrastructure, with each rated as either 'attractive,' 'average' or 'unattractive.'
Ghana's public expenditure on education as a percentage of its GDP is the highest of all 10 countries.
The DRC scored worst in the PwC study, with average demographics and resources, and unattractive economics, business environment, trade and logistics and transport infrastructure.
Looking ahead from 2012 to 2017, the situation in the DRC is not expected to improve significantly, despite average GDP growth of 8.6 per cent – the highest of all the 10 countries.
Angola is forecast to record average GDP growth of 5.7 per cent during this period, with Ghana at 5.9 per cent, Kenya 6.2 per cent, Mozambique eight per cent, Nigeria 6.8 per cent, South Africa three per cent, Algeria 3.6 per cent, Egypt 3.5 per cent and Tanzania seven per cent.
Shaw, however, said that Mozambique is a case in point of how inadequate infrastructure can stall growth.
"The country has massive reserves of coal and natural gas that can't get out.
"Mozambique's lack of infrastructure, and fast-deteriorating existing infrastructure, have forced landlocked countries, such as Zimbabwe, to rather move their goods through Tanzania or South Africa," he said in the report.
New oilfields in Kenya and Uganda, as well as growing agricultural exports, are expected to kick-start a new round of investments at East African ports.
Just over $50-million is to be invested in Kenya's Mombasa port, and $400- to $500- million in Tanzania's Dar es Salaam port.
Shaw said China is an important driver of infrastructure construction in Africa, in exchange for much-needed natural resources.
The DRC State copper company has, for example, signed a contract with China worth more than the DRC's yearly budget.
"Kenya's $5-billion rail agreement linking Mombasa with Uganda was also driven by China," Shaw said.
While exporting and importing goods are important, he emphasises that Africa should do more to improve intra-Africa trade.
Only 11 per cent of Africa's trade is with African trading partners, compared with 50 per cent between Asian countries. This means Africa's road network has to improve.
Shaw says a roll-out of infrastructure to cater for mining, oil and gas projects should lead to a growing retail and agricultural sector, which has a different set of infra- structure demands, such as cold storage.
He names threats to the African business environment as corruption, strike action in South Africa, the continued Arab Spring up north, piracy on the East Coast, and regular floods in Angola and Mozambique. "There is also a lack of political will to collaborate."
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