Exporters should not underestimate
the opportunities
in Zambia, Ghana and
surprisingly, Rwanda, as
these three countries are
standing out, thanks to ongoing
improvements via reforms and
accelerated growth.
“Anyone wanting to expand
into Africa as well as those
already active on the continent
should be keeping a very close
eye on Rwanda as this country
is doing exceptionally well,”
said Celeste Fauconnier, an
African analyst with Rand
Merchant Bank.
“It is not just the fastest
growing economy in Africa,
but the fastest in the world.
And yes there are reservations,
especially around the President,
but there is no denying the
reforms they have put in place.”
Addressing the Exporters’
Club Western Cape recently,
she said major steps had been
taken to diversify the economy
while at the same time
investments in infrastructure
were under way and efforts
to improve the operating
environment were paying off.
“You can open a business
in Rwanda within 24 hours
online. It is a country that is
worth watching.”
She said an RMB report on
where to invest in Africa had
highlighted Rwanda as one of
the countries that would see
sustained growth over the next
couple of years.
“They have taken
cognisance of who their
competitors are and what they
need to do to attract foreign
investment. Another country
that is standing out is Zambia,
which has already doubled
its economy and is expected
to continue growing into the
foreseeable future.”
She said the country had
also learnt some valuable
lessons during the 2008/9
recession when the price
of copper fell and was
diversifying its economy while,
like Rwanda, there was a
major focus on infrastructure
improvements.
“Another country that one
has to highlight is Ghana as
it already has a diversified
economy. Until recently it was
focused on cocoa and gold, but
with the finding of oil and gas
big things are being predicted
for the country.”
In the process of reforming
their regulatory environment,
Fauconnier said the Ghanaian
economy had stabilised
following a significant increase
in growth of around 15% a few
years ago. “The start of oil and
gas production contributed to
this. It is now stabilising but
we expect to see growth still
above 7%.
She said other economies
that were considered to be
extremely attractive investment
options were Kenya, Ethiopia,
Tanzania and Uganda in
the east, while Tunisia and
Morocco were the most notable
in the north.
“Libya also stands out
from a growth perspective,
representing the recovery from
the civil war, but caution is
advised due to the political
instability.”
Countries that have been
identified as less than attractive
in the report include Benin,
Guinea and Gabon.
“One of the countries that
has worsened in its ratings is
Namibia while countries such
as Angola and Zimbabwe
have not scored very
highly,” said Fauconnier.
“It is important to note that
we are not saying there are
not opportunities there, but
rather in comparison to other
countries on the continent
they have not rated well.”
She said Angola remained
on the cautionary list
because of its difficult
operating environment and
its reputation of being one of
the most corrupt countries in
the world, while Zimbabwe’s
political dictatorship spoke
for itself.
CAPTION
Celeste Fauconnier ... ‘You can
open a business in Rwanda within
24 hours online.’
