West African economies score high on integration index

The economies of Nigeria and Ghana are more integrated than those of the “Southern African Cluster” comprising Angola, Mozambique, South Africa, Zimbabwe and Zambia, according to the 2013 Visa Integration Index. Four key metrics to measure integration were used: the flow of goods and services or trade; financial integration and the movement of capital; the flow of information and knowledge; and the movement of people. Ghana scored 52.1 on the integration score, and Nigeria 40.6. According to Visa, South Africa is the continent’s most integrated economy, with a score of 63.3. The score of the Southern African cluster is brought down by Angola (28.8) and Zimbabwe (31.1), which have the least integrated economies of the 11 countries in the survey. Ghana is third behind South Africa and Kenya (53.9). Ghana has made “substantial progress in recent years – especially toward its regional integration, where it has increased from 50.4 to 55.1 in the period measured, but still has a way to go in terms of greater global integration,” says the report. The relatively strong Visa Africa Integration Index score is based largely on its regional integration and growing linkages and exchanges with Nigeria. “These developments bode well for Ghana and the broader West African region, and increased regional integration will allow Ghana to benefit enormously from Nigeria’s extensive market,” it says. Nigeria’s Visa Africa Integration Index score of 40.6 is however below the average of the 11 countries measured, despite it being the largest economy in West Africa. But, the country is becoming more connected, improving its regional integration score from 30.8 to 35.7 during the period measured. “This is likely to translate into broader integration across the continent and further afield in global integration,” says the report. “The size and influence of Nigeria in Africa cannot be overstated. While the country’s levels of regional and global integration still are relatively low, Nigeria is likely to be one of the key drivers of integration in Africa and one of the primary forces of African integration with the rest of the world. “While the Nigerian economy is diversifying, aided by an increasing number of Nigerian multinationals emerging and expanding across the continent, it will be Nigerians themselves that will be the true catalysts of integration,” it adds. INSERT 4 KEY METRICS TO MEASURE INTEGRATION INFORMATION, TRADE MOVEMENT OF PEOPLE, CAPITAL.