A new index, ranking each of Africa’s 53 countries in terms of investment potential is launched. The Star of AfricaTM is a weighted index based on governance and social capital as well as Africa’s electricity, water (supply, sanitation and irrigation), internet and telecommunications sectors.
The index is launched by African Rainbow Consulting, which provides intelligence briefings on doing business in Africa. It is designed to help investors and entrepreneurs to establish which countries offer significant risk or opportunity for successful long-term investment.
Topping the index is Nigeria, which, despite its poor governance score, offers significant scope for improvement in access to water, electricity and ITC infrastructure. Ethiopia ranks second, based on its potential for better countrywide access to water and electricity.
Some of the major opportunities available include:
-An estimated 497 million people need access to electricity.
-47% of Africa’s energy use is sourced from biomass, much of which is inefficient and environmentally destructive.-600 million potential customers are waiting for access to improved sanitation.
-Over 36 million hectares in Africa are suitable for irrigation, but are not actually irrigated.
-628 million Africans do not have mobile telephone subscriptions.
-Only 6% of Africans use the Internet.
“Africa represents a market of a billion people,” says Katharine Pulvermacher, chief executive, African Rainbow Consulting. 80% of Africans live in rural areas, many without access to what most of us consider basic amenities. Significant and highly profitable business opportunities exist in the continent.”
“If these are maximised, the result will be improved African living standards and a boost to economic growth. But while many people in the west would like to contribute to development in Africa without giving aid, there is very little reliable information available to potential investors on where the opportunities lie and the risk involved. The Star of AfricaTM is designed to address this.”
L.D.