UK trade index ranks SA tops in Africa

United Kingdom (UK) companies looking to expand their businesses on the African continent should look at South Africa as “the most open and potentially lucrative country”, according to the first Barclays Africa Trade Index released this week.

Of 31 sub-Saharan countries, South Africa ranked second in terms of abundance of opportunities (after Nigeria) and first for openness and ties to other African states, according to the index.

“While South Africa is the standout performer in the overall index, Nigeria arguably represents the most exciting long-term opportunity for UK businesses,” Barclays said. “However, its performance in terms of openness, 12th, and intra-African connectivity, 16th, means that Nigeria still has a long way to go before it can hope to compete with South Africa as a regional trade hub or as a gateway to other African markets.”

Barclays added that there had been an increased interest in trading and investing in the sub-Saharan region over the past few years, with the UK having exported about US$12.5 billion of goods to sub-Saharan countries in 2013.

Nigeria, Ethiopia, the Democratic Republic of Congo, South Africa and Tanzania all rank in the top six performing countries on trade opportunity, while Ethiopia, Congo, Tanzania and Nigeria, together with Ghana and Mozambique, lead in average economic growth over the past five years, Barclays said.