Event date: 19 July 2018
Our Members’ July Business Briefing has come and gone, and just like that we find ourselves firmly in the second half of the year and the winter season. It was a real privilege to be the first to hear insights from EY’s annual Africa Attractiveness Survey report, which will not be publicly released for some time still.
On top of that, EY also introduced Wavespace™ – a physical, mental and digital emersion space for EY and their clients to have think-tanks fit for solving tomorrow’s problems. This is the first Wavespace on African soil.
Here are some key insights that emerged from the Africa Attractiveness Survey results:
The fundamentals (of Africa’s economic indicators) are largely positive, but debt levels and currencies are concerning
Nigeria: Growth prospects will rebound on higher oil prices and return to a trade surplus
Kenya: This is the currency that seems to defy gravity! Growth holds steady on macro policy commitments addressing twin deficits
Cote d’Ivoire: Will be one of the fastest growing economies globally in the next few years
South Africa’s FDI (Foreign Direct Investment) still derives mainly from Western countries, but this is changing, although slowly (Top three foreign investors are: EU cumulative 35%; USA 27%, UK 18%)
FDI from BRICS nations remains low
South Africa makes up 21.5% of Africa’s GDP
South Africa hosts 20% of Africa’s technology hubs, leading the digital shift
What can Africa do to attract more FDI? Economic growth, more policy certainty and increase the ease of doing business