A focus on Nigeria - EYFILE… · Africa by numbers A focus on Nigeria Special report issued for:...

Africa by numbersA focus on NigeriaSpecial report issued for:World Economic Forum on Africa 2014

Introduction

| Africa by numbers A focus on Nigeria1

Over the past 3 years, EY’s Africa attractiveness reports have highlighted the continent’s steady rise. Our research, which includes both investor surveys and analysis of greenfield and brownfield FDI trends, has helped to provide some quantitative substance to the growing perception that African markets offer an exciting growth and investment opportunity. What our research has also highlighted, however, is a lingering perception gap between those companies already doing business on the continent and those with no business presence.

We have recently completed our 4th annual survey, and the perception gap continues to persist – those respondents with an established business presence in Africa are more positive than ever about the continent’s prospects, and, for the first time, have also ranked Africa as the most attractive regional investment destination in the world today. In stark contrast, respondents that have not yet invested remain negative, rank Africa as the least attractive regional investment destination in the world.

The realityIn many respects, Nigeria epitomises this almost bi-polar view of Africa: for many of us already doing business on the continent it is an exciting, dynamic, high octane growth market; for some others, often on the outside looking in, it seems chaotic, unstable, and uncertain. The reality is obviously less cut and dried than

either of these extremes and in many respects depends on the perspective that one chooses to adopt. Nevertheless, we certainly believe that the facts support the more positive perspective on Nigeria and its prospects as an investment destination.

The numbers tell us that Greenfield FDI projects into Nigeria have grown at a compound rate of close to 20% since 2007, positioning it among the 10 countries with the highest growth rates in Africa. Nigeria has also attracted the most FDI capital and the 2nd most FDI projects in Sub-Saharan Africa over that period, making it one of the star performers in a period in which FDI flows into the region have been fairly robust.

What is equally positive is the increasingly diversified nature of the investment. Although more than 50% of the FDI capital invested into Nigeria since 2007 has been into the capital intensive resource sectors (primarily oil), nearly 50% of FDI projects are service-orientated. There has been particularly strong growth in investment into telecommunications, with the sector attracting 23.9% of FDI projects between 2007 and 2013. Growth in investment into other service sectors like financial services, consumer products, tourism and business services, further highlights the growing opportunities emerging in these sectors.

A key driver of growing levels of investment has been Nigeria’s robust and sustained economic growth. Over the past decade,

the economy has consistently registered high single digit growth rates. The recent rebasing of Nigeria’s GDP now makes it the largest economy in Africa, and one of the 30 largest economies in the world. Nigeria’s economic performance is still somewhat dependent on oil, and remains susceptible to changes in the oil price. However, as the FDI trends indicate, it is the non-oil sector that has been the main driver of growth in recent years, led by agriculture, services, and wholesale and retail trade.

However, like most emerging markets, Nigeria will continue to face its fair share of challenges. Corruption, threats to physical security and poor infrastructure are among those often cited as constraints to investment and doing business. Arguably though, power shortages have been the biggest constraint to expanding investment and doing business. Nigeria has one of the lowest per capita national power supplies in the world, and most businesses rely on fuel-powered generators for reliable power. Besides the cost this adds to doing business (estimated to be as much as 40% in some sectors), it also significantly hampers broader industrial development. Recent progress made in the privatisation of the power sector should significantly increase levels of investment into electricity generation and distribution, and could transform the business environment in Nigeria.

Nigeria has also attracted the most FDI capital and the 2nd most FDI projects in Sub-Saharan Africa

2Africa by numbers A focus on Nigeria |

A robust economyDespite these challenges, and while many other emerging markets are suffering from the consequences of global monetary tightening, the Nigerian economy has remained remarkably robust. EY recently developed a heatmap to illustrate the economic vulnerability of a group of 25 different emerging markets, drawing on previously published research into currency and banking crises, and ranking each country under seven indicators of risk (current account balance, government debt, inflation, currency volatility, etc.). According to these indicators, Nigeria has the 3rd highest overall ranking among all these emerging markets (and is also well ahead of the aggregate ranking for the US, Japan and Germany). This strong macro-economic management coupled with progress in the political domain, provides us with confidence that overall growth rates will continue in the 5-6% zone for the foreseeable future.

Given these continued growth rates and the recent GDP rebasing, an improving business environment, a portfolio of active infrastructure projects with a value close to $100b, and, of course, a population of about 170m people, Nigeria’s billing as a powerhouse in a dynamic, high growth region is certainly justified. As a result, we anticipate that Nigeria will continue to be a key hub for investment into Africa, and is likely to emerge as one of the most attractive developing market investment destinations in the world in coming years.

The privatisation of the power sector should significantly increase levels of investment into electricity generation and distribution, and could transform the business environment in Nigeria.

3 | Africa by numbers A focus on Nigeria

*Aggregate measure of Germany, Japan and the US.

What is displayed in each column1. Overall scores are based on the addition of the seven rankings. We have

then normalised the total rankings from 1 to 20. The highest figure indicates the highest risk.

2. Current account balance shows the strength of the current account balance in 2013.

3. External debt shows the level of external debt over GDP in 2012.4. Government debt shows the level of government debt over GDP in

2012.5. Inflation shows average inflation in 2013. 6. Growth in credit market shows the average growth of credit markets as

a share of GDP fro 2010 to 2012.

7. Import cover shows the ratio of foreign exchange reserves to imports in 2013.

8. Currency change over year shows the change in the currency against the US Dollar over the 12 months to mid-December 2013.

Legend of colours used in first column (overall score).

For each indicator, we have marked:• In red: the eight countries with the highest risk• In orange: the nine ountries with medium risk• In green: the nine countries with the lowest risk

Economic vulnerability heatmap

Overall score Current account External debt Government

debt Inflation Growth in credit to GDP Import cover

Currency change over

year

Turkey 20 26 19 13 21 26 16 21

Argentina 19 14 16 14 24 24 17 24

Ghana 19 25 13 20 26 10 22 16

Vietnam 18 13 22 18 18 23 25 8

India 17 22 6 19 25 17 13 20

Egypt 16 19 5 23 23 5 23 18

Czech Republic 16 20 21 15 6 18 21 10

Brazil 15 17 4 22 17 25 3 19

Poland 15 23 24 21 5 16 15 1

Indonesia 15 12 9 7 20 21 11 23

South Africa 14 18 11 12 15 1 20 22

Advanced* 14 10 26 24 3 6 14 15

Ukraine 13 24 25 10 1 3 24 4

Colombia 13 21 8 9 9 20 9 14

Mexico 13 15 7 11 14 19 18 6

Chile 12 16 18 2 7 13 12 17

Thailand 11 11 12 8 10 22 7 11

Kazakhstan 11 5 23 4 16 4 19 9

Malaysia 11 4 15 17 8 15 8 12

Russia 10 6 14 3 19 12 4 13

Korea 9 8 17 16 4 7 10 3

UAE 8 3 10 1 2 8 26 4

Qatar 8 1 20 1 12 11 5 4

Nigeria 7 7 1 6 22 2 6 7

China 6 9 2 5 11 14 2 2

Saudi Arabia 5 2 3 1 13 9 1 5


Country overview

Nigeria

Henry EgbikiEY West Africa Regional Leader

Tel: +234 8023145694 Email: [email protected]

Opportunity indicators Risk indicators

GDP (current)* US$262.61bnEase of doing business overall rank out of 184 countries (17th in Africa)

131

Population growth (annual) 2.56%Transparency International Corruption Perceptions Index (0=highly corrupt, 100=very clean; ranked 38th in Africa)

27

Population (m) 171.3Strength of investor protection index (0 =unfavorable, 10=favorable; ranked 12th in Africa)

5.7

Mobile penetration (% of population with mobile access)

58.58 %Logistics Performance Index: overall rank out of 155 countries (25th in Africa)

121

Urban population (% of total) 49.62 % Democracy score (0=lowest, 10=highest) 4

Real GDP growth (compound average growth rate): 5-year forecast (2018)

5.38 %Mo Ibrahim Index of African Governance (rank out of 52 countries)

43

Real GDP growth (compound average growth rate): 10-year historical (2003)

6.62 %Perceptions of governance – rule of law: percentile rank (0=lowest, 100=highest)

25.82

GDP per capita (US$): 5-year forecast (2018) US$2,652Perceptions of governance – regulatory quality: percentile rank (0=lowest, 100=highest)

20

Country wealth (1=low income, 2=lower middle, 3=upper middle, 4=high income (non-OECD), 5=high income (OECD))

2Quality of overall infrastructure (1=extremely underdeveloped, 7=extensive and efficient by international standards)

3.2

Literacy rate (total population %) 61.3 % Corporate maximum tax rate (%) 30%

Source: The World Bank; OECD National Accounts; United Nations Population Division & World Urbanization Prospects; Oxford Economics; ITU International; Transparency International; International Bank for Reconstruction and Development; Polity IV Project; Mo Ibrahim Index of African Governance; Worldwide Governance Indicators; WEF Global Competitiveness Report; Worldwide Corporate Tax Guide

• This is Nigeria GDP as per World Bank statistics. This is before recent rebasing of Nigerian economy by the Nigerian Bureau of statistics.

Algeria Libya Egypt

Mauritania Mali

Côte d’Ivoire Gabon

Equatorial Guinea

Congo

Central AfricanRepublic

Cameroon

Nigeria

Niger Chad Sudan Eritrea

Ethiopia

SomaliaKenyaDemocratic

Republic ofCongo

RwandaBurundi Tanzania

Seychelles

Comoros

MalawiZambiaMauritius

Mad

agas

car

Reunion

Zimbabwe

Angola

NamibiaBotswana

South Africa LesothoSwaziland

Guinea

Sao Tome

Djibouti

Morocco

Burkina Faso

UgandaTogo

Benin

Tunisia

CapeVerde

GambiaSenegal

Liberia

WesternSahara

Sierra Leone

GuineaBissau

Mozambique

SouthSudanGh

ana

Abuja

IbadanLagos

Port Harcourt


Nigeria’s top 10 project investors since 2007Countries are ranked by most new projects (2007–13).The US, South Africa and the UK are the top 3 investors into Nigeria. In terms of capital investment, there is still a strong bias towards the oil sector. However, there is a marked shift, with investors from South Africa, the UK, and India, for example, leading the way in investing in sectors like telecommunications, consumer products and automotive.

Source: All diagrams on this page have been sourced from fDi Markets and EY analysis.

Top sectors

Nigeria’s investment into top sectors (2007–13) by most projects

(Total = 306)

Investments into Nigeria have been rapidly diversifying in the period since 2007. Although the oil sector still attracts the most capital, there has been significant growth of FDI in telecommunications, consumer products, construction and business services.

Nigeria’s investment into top sectors (2007–13) by most capital invested

(Total = US$55,318m)

FDI trends in Nigeria

Capital invested FDI (US$m) Jobs created by FDI New project FDI

2004 2005 2006 2007 2009 2010 2011 2012 20132008

6531

19

35

25

20

4143

34

50

6058

4656

14257

1166410447

4906

12069

13543

7293

94419249

5145

37684811

84807613

59836581

23059

3303

% CAGR (2007–13)New projects Capital invested Jobs created19.4% 10.4% -9.6%

Jobs created by FDICapital invested FDI (US$m) New project FDI

United States South Africa UK India Germany Japan South Korea Singapore SwitzerlandFrance

4613

43

3835

27

14 1311

9 9 8

5775

3111

5595

3963

5447

7563

1978

561

2516

642327

835986

1441 2761

293

915

28702708


TMT

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1224

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0

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9919

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616

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9

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3

United States UK India FranceSouth Africa14% projects/8% capital 12% projects/6% capital 11% projects/7% capital 9% projects/5% capital 5% projects/5% capital

Project number Capital value (US$m)

Roads andbridges

Power plantsand transmission

grids

Airports Rail Ports Oil and gaspipelines

Commercialconstruction

WaterIndustrialconstruction

16,475

13,782

2,848

5,288

2,470

7,015

10,500

12,600

103

46

24

11

75

4 32 2

Nigeria’s inflow of investment of FDI since 2003Nigeria received 6% of Africa’s total FDI for new projects and 11% of capital invested since 2007.Nigeria has seen strong compound growth in FDI projects of close to 20% since 2007. Although the average value of projects has declined, this reflects the growing diversification of investment (and the Nigerian economy).


2004 2005 2006 2007 2009 2010 2011 2012 20132008

6531

19

35

25

20

4143

34

50

6058

4656

14257

1166410447

4906

12069

13543

7293

94419249

5145

37684811

84807613

59836581

23059

3303




4613

43

3835

27

14 1311

9 9 8

5775

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1978

561

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835986

1441 2761

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0

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44 76 1246

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Roads andbridges


grids




16,475

13,782

2,848

5,288

2,470

7,015

10,500

12,600

103

46

24

11

75

4 32 2

Nigeria’s top 5 investors for FDI new projects since 2007 (total = 306)Capital invested FDI (US$m) Jobs created by FDI New project FDI

2004 2005 2006 2007 2009 2010 2011 2012 20132008

6531

19

35

25

20

4143

34

50

6058

4656

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1166410447

4906

12069

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16,475

13,782

2,848

5,288

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10,500

12,600

103

46

24

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75

4 32 2

United States (14%)

France (5%)

Other investors (49%)South Africa (12%)

UK (11%)

India (9%)

Nigeria’s top 5 investors for FDI capital invested since 2007 (total = US$55,318m)Capital invested FDI (US$m) Jobs created by FDI New project FDI

2004 2005 2006 2007 2009 2010 2011 2012 20132008

6531

19

35

25

20

4143

34

50

6058

4656

14257

1166410447

4906

12069

13543

7293

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84807613

59836581

23059

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4613

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16,475

13,782

2,848

5,288

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12,600

103

46

24

11

75

4 32 2

South Africa (6%)

Other investors (40%) Canada (31%)

United States (8%)Mauritius (8%)UK (7%)


2004 2005 2006 2007 2009 2010 2011 2012 20132008

6531

19

35

25

20

4143

34

50

6058

4656

14257

1166410447

4906

12069

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84807613

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23059

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4613

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5595

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7563

1978

561

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1441 2761

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grids




16,475

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2,848

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10,500

12,600

103

46

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4 32 2

Coal, oil and natural gas 52%

Retail and consumer products

4%

Chemicals 3%

Other sectors 7%

Real estate, hospitality and construction 8%

Technology, media and telecommunication 25%

Technology, media and telecommunication24%

Retail andconsumer products21%

Other sectors 47%

Financial Services9%

Business Services8%

Coal, oil and natural gas 8%


2004 2005 2006 2007 2009 2010 2011 2012 20132008

6531

19

35

25

20

4143

34

50

6058

4656

14257

1166410447

4906

12069

13543

7293

94419249

5145

37684811

84807613

59836581

23059

3303




4613

43

3835

27

14 1311

9 9 8

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3111

5595

3963

5447

7563

1978

561

2516

642327

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1441 2761

293

915

28702708


TMT

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Busi

ness

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Fina

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9919

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67 410

845

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488

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1

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44 76 1246

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1776

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1988

616

1000

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6

4 202190

119

64

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9

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5 54 4

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4 4 3 24 3 2 2 1

3



Roads andbridges


grids




16,475

13,782

2,848

5,288

2,470

7,015

10,500

12,600

103

46

24

11

75

4 32 2


Nigeria’s top investors by their top sector FDI investments since 2007Investor countries are ranked by most new projects 2007–13.These top investors contribute to 56% of all project activity and 44% of capital invested into Nigeria since 2007.

Nigeria’s FDI outlook

FDI outlook2000 2013 2018 Comments

Natural resourcesNigeria's oil and gas sector attracts a large proportion of total FDI, and its oil reserves will continue to attract substantial capital.

LaborA rapidly growing working population, but relatively low levels of education remains a hindrance.

Market sizeLargest population and now the largest economy in the region, with rising GDP per capita levels, makes this an increasingly attractive consumer market.

InfrastructureRemains a challenge, but improvements have been made over previous decade, and there is a substantial number of currently active infrastructure projects.

BureaucracySignificant levels still remain, which hinders economic activity. However, Government is increasingly open for business.

Political environmentDemocratic institutions and processes have improved substantially, but social tensions remain a concern.

Overall outlook for FDINatural resources and a growing consumer market are strong pull factors for FDI. Investment in infrastructure and improvements in the overall business environment will boost FDI levels going forward.

Source: Oxford Economics; EY analysis

Very unattractive Unattractive Average Attractive Very attractive for FDI


2004 2005 2006 2007 2009 2010 2011 2012 20132008

6531

19

35

25

20

4143

34

50

6058

4656

14257

1166410447

4906

12069

13543

7293

94419249

5145

37684811

84807613

59836581

23059

3303




4613

43

3835

27

14 1311

9 9 8

5775

3111

5595

3963

5447

7563

1978

561

2516

642327

835986

1441 2761

293

915

28702708


TMT

RCP

Busi

ness

ser

vice

s

Fina

ncia

l ser

vice

s

Coal

, oil

and

natu

ral g

as

RCP

Fina

ncia

l ser

vice

s

TMT

Busi

ness

ser

vice

s

TMT

Real

est

ate,

hos

pita

lity

and

cons

truc

tion

Busi

ness

ser

vice

s

Coal

, oil

and

natu

ral g

as

RCP

Fina

ncia

l ser

vice

s

TMT

Life

sci

ence

s

Hea

lthca

re

Busi

ness

ser

vice

s

Aut

omot

ive

Coal

, oil

and

natu

ral g

as

TMT

Real

est

ate,

hos

pita

lity

and

cons

truc

tion

Fina

ncia

l ser

vice

s

RCP

1224

953

243

1491 15

4

58 4516

0

1862

710

256

1980

9919

4

2239

1887

16

67 410

845

1540

488

3410

1

1125

619

409

760

44 76 1246

1593

47 492

1110

9

24 639

189

1776

690

1988

616

1000

2212

6

4 202190

119

64

13

9

64 4

8

5 54 4

7

4 4 3 24 3 2 2 1

3



Roads andbridges


grids




16,475

13,782

2,848

5,288

2,470

7,015

10,500

12,600

103

46

24

11

75

4 32 2

Source: fDi Markets; EY analysis.



2004 2005 2006 2007 2009 2010 2011 2012 20132008

6531

19

35

25

20

4143

34

50

6058

4656

14257

1166410447

4906

12069

13543

7293

94419249

5145

37684811

84807613

59836581

23059

3303




4613

43

3835

27

14 1311

9 9 8

5775

3111

5595

3963

5447

7563

1978

561

2516

642327

835986

1441 2761

293

915

28702708


TMT

RCP

Busi

ness

ser

vice

s

Fina

ncia

l ser

vice

s

Coal

, oil

and

natu

ral g

as

RCP

Fina

ncia

l ser

vice

s

TMT

Busi

ness

ser

vice

s

TMT

Real

est

ate,

hos

pita

lity

and

cons

truc

tion

Busi

ness

ser

vice

s

Coal

, oil

and

natu

ral g

as

RCP

Fina

ncia

l ser

vice

s

TMT

Life

sci

ence

s

Hea

lthca

re

Busi

ness

ser

vice

s

Aut

omot

ive

Coal

, oil

and

natu

ral g

as

TMT

Real

est

ate,

hos

pita

lity

and

cons

truc

tion

Fina

ncia

l ser

vice

s

RCP

1224

953

243

1491 15

4

58 4516

0

1862

710

256

1980

9919

4

2239

1887

16

67 410

845

1540

488

3410

1

1125

619

409

760

44 76 1246

1593

47 492

1110

9

24 639

189

1776

690

1988

616

1000

2212

6

4 202190

119

64

13

9

64 4

8

5 54 4

7

4 4 3 24 3 2 2 1

3



Roads andbridges


grids




16,475

13,782

2,848

5,288

2,470

7,015

10,500

12,600

103

46

24

11

75

4 32 2

Nigeria’s active* infrastructure projects up to July 2013Nigeria ranks 2nd in Africa by number of projects and 2nd by capital allocation.

Nigeria’s infrastructure project breakdown

Examples of some active infrastructure projects in Nigeria

Project name Capacity and time frame Company involvement Other details

Lagos Rail Mass Transit (PPP) ProjectSponsored by the Lagos Metropolitan Area Transport Authority (LAMATA).

• Phase one: the 27.5km Blue Line from Marina to Okokomaiko; LAMATA's has envisioned a long-term plan of seven lines

• Completion of phase one is pushed out to end-2015

The China Civil Engineering Construction Corp. (CCECC) is the main EPC contractor on phase one. The project is sponsored by the Lagos State Government (LSG) and will be developed by LAMATA on behalf of LSG.

This modern rail-based public transport system is the first of its kind in SSA outside of RSA. The railway equipment, including signaling, rolling stock and fare collection equipment, will be provided by the private sector. The project is also responsible for generating its own electricity. Detailed design and surveying for the entire project has been completed.

Abuja-Kaduna Rail Modernisation (PPP) ProjectUpgrading to standard gauge.

• 186km rail modernization network will result in a track with 36 bridges and 9 fully developed stations

• In progress (brownfield); completion expected in 2014

China Exim Bank is providing a US$500m concessionary loan, the remaining US$374m comes from the Federal Government of Nigeria. China Civil Engineering Construction Corporation (CCECC) was awarded the main EPC contract.

Track laying for the single standard gauge line was officially launched in July 2013. The railway modernization initiative in Nigeria aims at replacing the existing narrow gauge system with the wider standard gauge system, while allowing high-speed train operations on the railway network.

Geregu II Gas-Turbine Power PlantLocated in Ajaokuta, Kogi State.

• 434 MW• The plant was turned over

on schedule in mid-2013

Siemens won the turnkey EPC contract to build the power station for the Nigerian utility Niger Delta Power Holding Company (NDPHC).

The project was commissioned under the National Integrated Power Project (NIPP) plan. Geregu II is now the third gas-turbine power plant to be constructed by Siemens in Nigeria as a turnkey project. By 2020, Nigeria plans to increase the country's generation capacity by five to eightfold from its current level of approximately 5 gigawatts (GW).

Infrastructure’s % contribution by number of projects


2004 2005 2006 2007 2009 2010 2011 2012 20132008

6531

19

35

25

20

4143

34

50

6058

4656

14257

1166410447

4906

12069

13543

7293

94419249

5145

37684811

84807613

59836581

23059

3303




4613

43

3835

27

14 1311

9 9 8

5775

3111

5595

3963

5447

7563

1978

561

2516

642327

835986

1441 2761

293

915

28702708


TMT

RCP

Busi

ness

ser

vice

s

Fina

ncia

l ser

vice

s

Coal

, oil

and

natu

ral g

as

RCP

Fina

ncia

l ser

vice

s

TMT

Busi

ness

ser

vice

s

TMT

Real

est

ate,

hos

pita

lity

and

cons

truc

tion

Busi

ness

ser

vice

s

Coal

, oil

and

natu

ral g

as

RCP

Fina

ncia

l ser

vice

s

TMT

Life

sci

ence

s

Hea

lthca

re

Busi

ness

ser

vice

s

Aut

omot

ive

Coal

, oil

and

natu

ral g

as

TMT

Real

est

ate,

hos

pita

lity

and

cons

truc

tion

Fina

ncia

l ser

vice

s

RCP

1224

953

243

1491 15

4

58 4516

0

1862

710

256

1980

9919

4

2239

1887

16

67 410

845

1540

488

3410

1

1125

619

409

760

44 76 1246

1593

47 492

1110

9

24 639

189

1776

690

1988

616

1000

2212

6

4 202190

119

64

13

9

64 4

8

5 54 4

7

4 4 3 24 3 2 2 1

3



Roads andbridges


grids




16,475

13,782

2,848

5,288

2,470

7,015

10,500

12,600

103

46

24

11

75

4 32 2

Social and welfare 4%Construction sectors 7%

Power generation andtransmission 23%

Logistics sectors 66%

Infrastructure’s % contribution by capital value


2004 2005 2006 2007 2009 2010 2011 2012 20132008

6531

19

35

25

20

4143

34

50

6058

4656

14257

1166410447

4906

12069

13543

7293

94419249

5145

37684811

84807613

59836581

23059

3303




4613

43

3835

27

14 1311

9 9 8

5775

3111

5595

3963

5447

7563

1978

561

2516

642327

835986

1441 2761

293

915

28702708


TMT

RCP

Busi

ness

ser

vice

s

Fina

ncia

l ser

vice

s

Coal

, oil

and

natu

ral g

as

RCP

Fina

ncia

l ser

vice

s

TMT

Busi

ness

ser

vice

s

TMT

Real

est

ate,

hos

pita

lity

and

cons

truc

tion

Busi

ness

ser

vice

s

Coal

, oil

and

natu

ral g

as

RCP

Fina

ncia

l ser

vice

s

TMT

Life

sci

ence

s

Hea

lthca

re

Busi

ness

ser

vice

s

Aut

omot

ive

Coal

, oil

and

natu

ral g

as

TMT

Real

est

ate,

hos

pita

lity

and

cons

truc

tion

Fina

ncia

l ser

vice

s

RCP

1224

953

243

1491 15

4

58 4516

0

1862

710

256

1980

9919

4

2239

1887

16

67 410

845

1540

488

3410

1

1125

619

409

760

44 76 1246

1593

47 492

1110

9

24 639

189

1776

690

1988

616

1000

2212

6

4 202190

119

64

13

9

64 4

8

5 54 4

7

4 4 3 24 3 2 2 1

3



Roads andbridges


grids




16,475

13,782

2,848

5,288

2,470

7,015

10,500

12,600

103

46

24

11

75

4 32 2

Logistics sectors 51%

Social and welfare 2%

Construction sectors 25%

Power generation and transmission 22%

*Active projects are categorized into three phases: 1. Conceptual to feasibility; 2. Financial closure to early implementation; 3. In progress and near completion.

Source: Africa Project Access, Business Monitor International; EY analysis.

Source: Africa Project Access, Business Monitor International; EY analysis.


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About EYEY is a global leader in assurance, tax, transaction and advisory services. The insights and quality services we deliver help build trust and confidence in the capital markets and in economies the world over. We develop outstanding leaders who team to deliver on our promises to all of our stakeholders. In so doing, we play a critical role in building a better working world for our people, for our clients and for our communities. EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients. For more information about our organization, please visit ey.com. © 2014 EYGM Limited. All Rights Reserved.

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EY contacts at WEF Africa 2014

Henry Egbiki Regional Managing PartnerEY West AfricaTel: +234 8023145694Email: [email protected]

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Adekunle Salau Leader Advisory ServicesEY West Africa Tel: +234 8112092999Email: [email protected]

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In our first edition of the Africa attractiveness survey 2011, we declared “It is time for Africa!” We also said that there was a window of opportunity to act before others woke up to the African opportunity. Today, that window is closing, and the cost of entering African markets is already beginning to rise. Companies with an already-established presence continue to expand and entrench their advantages. In our opinion, the risk of missing this window is likely to be far greater than any of the risks you will encounter in actually doing business in Africa. EY’s attractiveness surveyAfrica 2014 – Available 15 May.

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