Survey shows growing importance of Nigeria
A survey of 206 African business executives shows that the revenue and profit contribution from the continent is expected to rise in the coming five years;
Nigeria’s importance as a primary market is likely to increase and South Africa’s decrease.
The ‘Africa is the horizon: the 2015 African Business Outlook Survey’, report was compiled by The Economist Corporate Network, which canvassed executives from Nigeria, South Africa, Angola and Kenya.
The Economist expects sub-Saharan Africa’s GDP to expand by 4.5% in 2015, making it the world’s fastest-growing economic zone, ahead of Asia’s 4.3%regional average. The group’s global expectation is for growth of 3.6%.
The survey estimates that, over the coming five years, sub-Saharan Africa’s share of global GDP will more than double, from 1.4% to 4% by 2020.
Most respondents felt their local markets would grow in importance, but Southern African executives, particularly in South Africa, felt their local markets’ importance would decline by 2020 as they look more to West and East Africa.
While many South African executives believe most new opportunities “are up north”, those to the north of South Africa believe South Africa is an attractive destination.