Page 22 - index_main
P. 22
AFRICAN ISSUES
The vital Port Louis, capital of Mauritius.
importance It is the only African nation to
of making make it into the top 50 countries
business easy worldwide when it comes to
ease of doing businesss
‘Ease of doing business’ is one of the challenges
of Africa and impacts everything from the
ability of marketers to export/import products
efficiently, to the willingness of retailers and
manufacturers to operate in certain regions.
We investigate the state of play.
D OING BUSINESS IN AFRICA IS It was followed in Africa by Rwanda Morocco’s
tough. It is a statement that’s (ranked 62nd), Botswana (ranked Tangier-Med is
repeated frequently for good 72nd) and South Africa, Africa’s largest Africa’s largest
reason. But it is but one that should also economy, ranked 73rd – way down from container port
be tempered with some reality, some the 33rd place it occupied in 2010. and is helping the
experts believe. country to attract
Among the 50 worst performing major international
“Rewind 15 years and you realise countries in the world, 30 were African – investment
how much progress has been made in and in company with the likes of war-torn
many African countries,” says Michael Yemen, Syria and Afghanistan. Among
Lalor, Africa Business Centre Leader for major African economies faring especially
professional services firm EY (formerly dismally are Angola (181st), Nigeria (169th)
Ernst & Young). In further defence of the and Algeria (163rd).
continent, Lalor continues: “People have
a generally bad perception of Africa and Nigeria, which briefly held the title of
look for things to reinforce their view. In Africa’s largest economy, falls short in a
reality, few emerging markets are easy number of key areas, not least availability
to do business in.” of electricity – where it ranks 182nd in the
world. To simply gain access to an erratic
He makes valid points. But there is mains electricity supply in Lagos, Nigeria’s
no escaping the reality that Africa’s 54 commercial capital, takes almost seven
countries by-and-large perform abysmally months, notes the World Bank.
in the World Bank’s benchmark annual
Ease of Doing Business study. The 2016 “Businesses can’t operate in Nigeria
study spans 189 countries, ranking them without their own generation ability,”
on 11 criteria including starting a business, observes Helmut Engelbrecht, Head of
obtaining construction permits, electricity Investment Banking in Africa at Standard
supply, registering property, cross-border Bank Group, Africa’s largest bank with
trading, enforcing contracts and labour operations in 20 sub-Saharan countries
market regulation. including Nigeria and Angola. The
economic damage resulting from the
Only Mauritius, ranked 32nd, made electricity shortage is huge. According
it into the top 50 countries worldwide. to a Nigerian government estimate,
20 strategicmarketingafrica Issue 4 2016
