Emerging Markets‐Middle East & Africa
2001‐2008: Buoyant growth (5.6% a year).
End 2008‐Early 2009: Sharp decline (2.9% a year).
End 2009‐2010: Resumed growth (4.5% a year).
Anticipated increase in aid by 11% (between 2008 and 2010).
Africa’s Economic Performance
2
Doing Business in Africa
Political Governance: 33 countries with at least 2 successive elections.
Telecommunications: mobile subscriber 561 million on 2012 .
Diaspora: Approximately $12 billion remittances to Sub‐Sahara Africa alone in 2007.
Solid progress in Business environment reforms.
Mineral Reserves: 30% of the world’s share: Gold (40%), Cobalt (60%) and PGM(90%).
Moving InMajor investment projects in other African nations by South African businesses since the end of apartheid
Aviation
Telecommunications
Manufacturing
Hotels & Retail
MiningSource: Business Map; New York Times
Africa Business Hubs
Energy & Oil
Banu Qurayza
Country Examples of Reforms
• 67 regulatory reforms registered in 29 of the 49 sub‐Saharan African countries.
• Rwanda ranked as the world’s top reformer.
• Liberia, Ethiopia, Ghana and Togo: streamlining of inspection processes.
• Uganda, Sudan: improved customs processes.
• Cape Verde: improved access to credit information.
• Cameroon: eliminated licence tax for new businesses.
Challenges to Doing Business in Africa
• Progress in ‘overall’ ease of Doing Business Rankings remains slow.
• Power outages among the highest in the World.
• Inland transportation costs higher than other regions.
• Attracting FDI into diversified and higher value‐added sectors still a challenge.
• African firms are some of the most highly taxed in the world.
Infrastructure and Energy Opportunities
• Bridging of Africa’s infrastructure gap estimated at $93 billion a year: with high returns.
• Oil reserves of 117.481 billion barrels in 2007: (9.49 % of the world's total).
• Natural gas reserves of 14.58 trillion cubic metres, (8.22% of the world total).
• 17 countries in Africa have the largest potential for solar, wind, hydro, and geothermal energy.
Imports % Contribution
China 28.7
India 12.9
USA 11.3
France 11.2
Brazil 7.4
UK 7.4
Japan 2.9
Product Category Export World Import WorldBasic Foods 14,875,274 21,052,701
Beverages & Tobacco 1,934,175 1,653,717
Ores, Metals & Precious Stones 19,304,114 3,931,312
Fuels 81,278,815 17,188,542
Manufactured Goods 19,442,801 34,861,887
Chemical Products 6,829,963 16,684,141
Machinery & Transport Equipment 9,685,665 53,868,421
Total 153,350,808 149,240,722
Exports % Contribution
EU 41.9
ROW 17.87
USA 17.6
Asia 6.6
Intra Rec 5.8
China 5.5
ROA 2.81
MENA Region – Arab region
Countries in the Middle East:- Turkey - Cyprus- Iran- Iraq- Kuwait - Syria- Lebanon- Israel- Jordan- Egypt- Saudi Arabia- Oman - Qatar- Yemen- UAE- Bahrain
The Middle East in the Twenty-First Century• Regional conflicts – Security issues• Bilateral trade agreements with the US and EU
(e.g., Saudi Arabia, Israel, Jordan)• Restrictions and trade sanctions (e.g. Iran)• Dependence on oil revenues and state-sponsored
subsidiaries • Large cultural/economic/political differences
among countries in the Middle East. (e.g. Turkey, Israel, Saudi Arabia)
Potential Economic Opportunities• Policies intended to attract FDI and to diversify
economically.• Privatization of traditionally state owned
enterprises.• Progress on building institutional infrastructure
(e.g., Israel, Turkey, Kuwait)• Population growth.• Regional integration efforts. • Reconstruction efforts in Iraq.
Key Points• Middle East is culturally, economically and politically
diverse (Arabs, Kurds, Iranians, Turks).• Resource rich countries with stable governments
with high rates of economic development (e.g. Saudi Arabia, Qatar, Kuwait).
• Countries with close trade relationship with the rest of the World (e.g., Turkey, United Arab Emirates).
• Potentially lucrative market but typical developing country market environment.
• Less fortunate countries of the Middle East (e.g., Syria, Iran, Iraq, Jordan).
Key Points• Region’s rich history, culture and religion, and their
implications.• Critical role of government in the Middle East.• The role of skepticism in the Middle Eastern World. • Islam is the glue of the Middle Eastern social fabric.• Collectivist, hierarchical and close knit societies.• The importance of shame / face / honor / consensus /
respect for authority / seniority.