THE JUDGING PANEL, METHODOLOGY

AFRICAN COUNTRY OF THE FUTURE:

SOUTH AFRICA

South Africa is the clear winner in fdi’s first pan-African competition, ranking top in four out of the seven main categories. As well as claiming the title of African Country of the Future 2005/06, the continent’s largest economy was judged to have the best economic potential, best quality of life, best human resources and best transport system. South Africa also ranked in the top three in several sub categories: GDP; level of FDI; FDI/capita; cost of central office space; cost of industrial space; quality of universities; level of mobile phone ownership; cost and quality of housing; quality of healthcare; and quality of schools.

Last year, foreign investors poured at least $565m into the country, equivalent to more than $12 per capita. Yet, despite the strong economic development in the past decade, central office space remains cheap: grade A offices in Johannesburg cost on average $58 per square metre per year, while industrial space in Central Witwatersrand costs just $32 per square metre per year.

The country has 10 major airports, over 700 minor airports and 14 universities, including several internationally recognised institutions. There are 28,000 schools (including 1000 private schools) and 366,000 teachers. Around 38% of the population owns a mobile phone. However, housing costs are rising. Rapid economic development led to an average house price gain of just over 30% last year.

Runner up:Tunisia

Consistently high levels of inward investment into Tunisia in recent years made it a strong runner up in this year’s competition. Tunisia, the third largest economy in the competition, attracted more than $650m in foreign investment last year and more than $3.5bn in the past five years.

Significant investments in 2004 include those from British Gas ($61m), Uniland ($28m), Benetton ($7.5m), Lear Automotive Corporation ($7.5m), and Danone ($6.3m). Tunisia also scored well for human resources and ranked joint first for IT and telecoms.

BEST ECONOMIC POTENTIAL:

Winner: South Africa

South Africa has Africa’s largest economy and GDP is forecast to grow 4.3% next year. Economic growth has strengthened the rand against the US dollar for the third year in a row, making it the second best performing currency in the world in 2004. Business confidence is at a 23-year high, while inflation remains at its lowest rate in years.

Runners up: Tanzania/Tunisia/ Algeria

Tanzania, Tunisia and Algeria experienced surging economic growth in 2004 with GDP rises of 6.6%, 5.8% and 7.1% respectively. The three runners up also attracted significant levels of FDI.

Mozambique’s average of 8% GDP growth in the past five years makes it the fastest growing economy in the competition.

FDI PROMOTION:

Winner: Egypt

Egypt impressed the judges with the quality of its promotional strategy and recent infrastructure projects, and for its overall attractiveness as a destination for foreign investment. Egypt’s partnership approach has helped to build local industry by forging stronger links with foreign companies. Easy access to markets in the EU, Middle East and Africa, plus the availability of low-cost utilities, raw materials and a skilled, productive, low-cost workforce, also won points.

Egypt also got votes for its recent projects, particularly water, sanitation and the expansion of Cairo Airport. Sokhna Port has been particularly proactive in chasing FDI, recently organising and sponsoring the first all-Egypt investment conference, held at the European Parliament.

Runner up: Nigeria

Nigeria caught the judges’ attention for the quality of its recent projects and overall FDI appeal, and was voted runner up for its overall FDI promotion strategy.

Tanzania picked up votes from the judges for its excellent promotion strategy, while Nigeria, Mauritius, Tunisia, Namibia and Rwanda won votes for infrastructure development. The judges thought Botswana had the best incentive scheme, followed by Egypt and Tunisia. Tanzania, Ghana, Mozambique and Rwanda scored points for investment incentives.

BEST TRANSPORT:

Winner: South Africa

South Africa boasts a modern and extensive transport infrastructure. Transnet, South Africa’s public transport and logistics company, and its major divisions include the biggest rail service in Africa responsible for freight, container and passenger transport, as well as 10 major airports that have doubled their traffic in the past 10 years to 14 million passengers a year.

Major airports include Cape Town International, Johannesburg International and Durban International; ports include Cape Town, Durban, Port Elizabeth, East London and Mossel Bay. South Africa is upgrading 13,000km of road. Its railway lines account for more than a quarter of Africa’s rail network.

Runner up: Egypt

Egypt’s extensive highways (including a 113km ring road around Cairo), a railway network that claims to be the second longest established in the world and Cairo’s underground metro system (which is being expanded to link up with the airport) all impressed the judges. Cairo International Airport has daily flights to most European, Asian and African countries, and the US. Egypt’s two main ports are Alexandria and El Sokhna.
Morocco, Senegal and Tunisia also picked up points for their transport links.

Winner: Ethiopia/Malawi (tie)

Industrial space costs an average of just $32 per square metre per year in Malawi, while out-of-town offices can be rented for an average of $48 per square metre per year. Ethiopia tied with Malawi as one of the lowest cost locations, largely on the basis of its low wage costs. Ethiopian secretaries earn an average of $1596 per year, middle managers $3120 per year and manual workers $0.34 an hour. Malawi’s manual workers make $0.18 an hour, secretaries make $2700 a year and middle managers $4800.

Runner up: Zambia

Zambian manual workers average $1 per hour, secretaries $3064 per year and middle managers $5620 per year. Office rental costs in Zambia were among the lowest of any country in the competition.

BEST HUMAN RESOURCES:

Winner: South Africa

More than 80,000 students graduate each year from South African universities. Among the best known of the country’s 14 universities are the University of Cape Town, Stellenbosch University, University of the Western Cape, Rand Afrikaans University and University of the Witwatersrand.

Runners up: Egypt/Tunisia/Senegal

Cairo, Egypt, is home to four public and six private universities, including the University of Cairo, and the American and German universities. Tunisia’s numerous universities and colleges have modern courses in management, infomatics and applied sciences. Tunisia is building research capabilities in areas such as renewable energy, water, environment, plant biotechnology, pharmacology, mechanical, electrical and computer industries, computer sciences and others.
The judges were also impressed by universities in Botswana and Algeria.

BEST IT AND TELECOMS

Winners: Mauritius/Tunisia (tie)

Since October 2004, Mauritius has had 284 telephone lines per 1000 people and just under 43% of the population owning mobile phones. The islanders are Africa’s most connected population, with more than one household in five wired up to the internet, way ahead of most of the continent. Excluding Mauritius, the average level of internet connection of African countries in the competition is below 5%.

Tunisia’s telephone density of 390 fixed and mobile lines per 1000 inhabitants and mobile phone ownership of 46% of households makes it one of the best countries for telecoms. The government projects the number of telephone lines per 1000 people will rise to 500 by 2006. Tunisia also has 771,000 connected internet users, equivalent to about 7.5% of the population.

Runner up: Ghana

Internet use in the West African nation is growing fast: one in 10 Ghanaians is now connected to the internet and the figure is rising. Ghana’s telephone density has reached 102 lines per 1000 people and 8.47% of the population owns a mobile phone.

QUALITY OF LIFE:

Winner: South Africa

South Africa won top votes for housing, healthcare and schools. According to Absa, South Africa’s biggest mortgage lender, average house prices rose 21.5% in 2003 and 30.3% in 2004. The average price for a medium-sized house in Cape Town is $110,000.

South Africa has also been investing in healthcare in the past decade. Between 1994 and 2004, more than 1200 new clinics were built and a further 252 clinics were upgraded. As a result of the expansion under the government’s free primary healthcare policy, the number of visits per person has increased from 1.8 per year in 1992 to an average of 3.5 visits in 2003.

South Africa has top quality schools in both the state and private sector. Many schools have boarding facilities to cater for students from aboard.

Runner up: Mauritius

Mauritius was the judges’ second choice for housing, healthcare and schools. Luxury houses range from $200,000 to $800,000 and rental rates vary from $500 to $1500 per month. The island offers extensive private healthcare facilities. Schools include government-run and private British and French schools. Secondary schooling offers Cambridge ‘A’ level college degrees, international baccalaureates and French baccalaureates.
Botswana won the judges’ vote for best cultural and natural heritage, followed by Tanzania.

REGIONAL AWARDS

CENTRAL AND EASTERN AFRICA:

Winner: Tanzania

Tanzania picked up points for its 6.6% GDP growth, $260m foreign investment in nearly 120 projects in 2004 and low-cost office rents averaging $60 per square metre per year. Judges also noted its transport system, schools and investment incentives. They were impressed by the IPA’s active promotion strategy: it has organised investment conferences in key locations in Europe, the Middle East and Asia. The panel also ranked Tanzania second for its cultural and natural heritage.

Runner up: Ethiopia

Ethiopia won points for its track record on FDI deals (the country has granted licences to more than 500 projects representing investment of $1.1bn), low wage levels (secretaries earn just $1596 a year), its cultural and natural heritage, and recent projects that include an $180m investment in Addis Ababa International Airport, $85m into the Addis Ababa Ring Road and $300m into the Gilgel Gibe I Hydro Power Station.

NORTHERN AFRICA:

Winner: Tunisia

Tunisia picked up points for its strong economic potential, based largely on the size of the economy (2004 GDP is estimated at $26.4bn), high levels of inward investment ($611m in 2004), recent FDI deals (see African Country of the Future 2005/06 runner up), low central office rents, universities and high levels of education, transport system, IT and telecoms network, housing, healthcare, schools, incentives, promotion strategy and projects.

Runner up: Egypt

Egypt ranks as the country with the best track record on recent FDI deals involving companies such as Ciments of France, Nissan Motor Co of Japan, Canon of Japan, and Cisco of the US. The judges were also impressed with the country’s universities, ranking them second after those of South Africa. The country’s transport system came second only to South Africa’s.

Egypt ranked first for its overall promotion of FDI, coming second after Botswana for investment incentives, second after Tanzania for its marketing strategy, equal first with South Africa for attractiveness for FDI and first for quality infrastructure projects.

See above: African Country of the Future 2005/06

Runner up: Mauritius

Mauritius has attracted significantly more FDI per capita than any of the other countries in this year’s competition. This is four times the level of investment into South Africa, the next most heavily invested country. Mauritius has a good IT and communications network, excellent expatriate housing and schools, and liberal foreign investment policies. It ranked equal second with Tunisia for its infrastructure and other building projects.

WESTERN AFRICA:

Winner: Senegal

Low industrial rents, low manual labour costs, high levels of education (9.1% of the population holds a degree), good transport links, reasonable telephone density, and high-quality expatriate housing and schools helped push Senegal to the top. Judges also awarded points for the country’s investment incentives and promotion strategy.

Runner up: Ghana

Ghana has low wage costs (secretaries earn an average of just $1643 per year, middle managers $3945), an improving transport network, good internet access (10% of the population is connected) and strong schools. The country also picked up points from the judges for its investment incentives, promotion strategy and its overall attractiveness for FDI.

Printer friendly version

Email this to a friend