SA joins ranks of ‘Rapid Growth Markets’

Several African countries will rank among the top 25 rapid growth markets (RGM) in the next few years – and those will include South Africa, Nigeria, Ghana and Egypt, according to Victor Kgomoeswana, associate director: African business centre for Ernst and Young. “Africa is the growth frontier of the world,” he said at the Freight Intra- Africa 2012 conference held in Pretoria recently. “The focus has shifted from more mature markets to RGMs. By 2020 these markets will make up 50% of the world’s GDP and represent some 36% of the global spend.” He said South Africa was one of these markets. While the country did not rate extremely high in terms of a growing economy compared to many other African countries – South Africa does not even make it in the top 30 when it comes to economic growth – it had many other factors in its favour. These include the ease of doing business in the country, its political stability as well as its location. “The top 25 RGMs are selected according to several criteria including their GDP, demographics and business development. Another important factor that is taken into consideration is the correlation between logistical infrastructure and the ability to grow. Several African countries are ranked in the top 25 RGMs,” said Kgomoeswana. “Africa offers more upsides over longer periods than the East for example,” he said.