Monday, July 4, 2022

‘Botswana to miss chance to be among Africa’s economic powerhouses’ – Ernst & Young

With the whole world looking at Africa as an investment destination of choice in the next decades, Botswana has not been considered among growth powerhouses of the Global Economy by 2040.

This is according to Ernst & Young’s third Africa Attractiveness Survey, released on Monday. This year’s report reinforces the point that those already doing business in Africa are overwhelmingly confident about the continent’s progress and prospects.

Countries like Nigeria, Ghana, Angola, Egypt, Kenya, Ethiopia and South Africa have been considered to be among the growth powerhouses of the global economy by the 2040s.

The 3rd annual report gives an insight of foreign direct investment (FDI) project flows into Africa for various periods going back as far as 2003. The report has revealed that Africa’s share of global foreign direct investment (FDI) has grown over the past five years highlighting the growing interest from foreign investors.

In the period since 2007, the rate of FDI projects from emerging markets into Africa has grown at a healthy compound rate of over 21 percent.

“There is a growing confidence and optimism among Africans themselves about the continent’s progress and future,” said Ajen Sita, Ernst & Young’s Africa Managing Partner.

According to the report, despite the impact of the ongoing global economic situation, the size of the African economy has more than tripled since 2000. The outlook also appears positive, with the region as a whole is expected to grow by 4 percent for 2013 and 4.6 percent for 2014.

“A number of African economies are predicted to remain among the fastest growing in the world for the foreseeable future,” stated the report.

The report revealed that 86 percent of those with an established presence on the continent believe that Africa’s attractiveness as a place to do business will continue to improve. Those surveyed rank Africa as the second most attractive regional investment destination in the world after Asia.

South Africa has been at the forefront of growth in intra-African trade and broader emerging market. Kenya and Nigeria have also invested heavily. While investment into North Africa has largely stagnated, FDI projects into Sub-Saharan Africa have grown at a compound rate of 22 percent since 2007. Among the star performers attracting growing numbers of projects have been Ghana, Nigeria, Kenya, Tanzania, Zambia Mozambique, Mauritius and South Africa.

“With an increasingly solid foundation of economic, political and social reform, together with resilient growth rates, we are confident that the continent as a whole is on a sustainable upward trajectory,” said Ajen.

The report has, however, proposed a shift in emphasis towards enabling those already doing business on the continent.

“Governments and business need to work together to make it easier for companies already established in Africa to invest and do business across the continent,” stated the report.

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