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Harare – South Africa’s economy is better connected to the rest of the global economy and others on the continent than its peers in the region, according to the Africa Integration Index.
However, sub-Saharan Africa economies remain “substantially unconnected” to the rest of the world, noted experts in the index that was released by Visa on Tuesday.
Additionally, the experts say, economic integration within the region is also lagging behind. “African economies are substantially unconnected to the rest of the world.
"Secondly, African economies largely are unconnected to each other,” said Mandy Lamb, the country manager for Visa in South Africa on Tuesday.
The index, which measures the extent of economic integration in sub-Saharan Africa, concluded that SA was the “most globally integrated economy in Africa” and that other countries in the region, although still behind, could improve.
The region was also said to offer “major growth potential through greater regional integration”.
South Africa leads the Southern African region and the continent’s economic integration rankings after rising by nearly three points to 66.7 points while Mozambique is marginally up at 42.5 points.
Zambia had substantially raised its ranking by as much as 11 points after it climbed upto 37.2, with Zimbabwe remaining below it with 31.2 points.
Ghana leads West Africa with 52.5 points while Nigeria – Africa’s largest economy – was placed below it at 40.5 points. In East Africa, Kenya had a top score of 55 while Uganda and Tanzania are closely behind, with 48.3, 47.1 and 45.6 points respectively.
Even though, South Africa, Kenya and Ghana topped the Southern Africa, East Africa and West Africa regions, Visa notes in the report that the three countries are still “a long way off the global” standards with the “the index results (flagging) the need for further structural improvements” to enhance economic integration within the region and with other global economies.
“Africa stands to gain from a sustained structural benefit brought about by the opening up of African economies to each other and to the world at large."
Visa said it was working with its partners to drum up and drive "cross-border integration to open up money flows across the region,” noted Lamb.
Visa notes in its report on the index that economic growth in Africa is likely to continue, with regional economies expected to attain average yearly growth rates of nearly 5.5% this year. Africa has a collective gross domestic product (GDP) of about $1.9 trillion, with the figure expected to top $2.6 trillion.
The Africa Economic Integration Index study was carried out with assistance from the Gordon Institute of Business Science visiting professor, Adrian Saville and Dr Lyal White, director for the Centre for Dynamic Markets and senior Lecturer at GIBS.
However, sub-Saharan Africa economies remain “substantially unconnected” to the rest of the world, noted experts in the index that was released by Visa on Tuesday.
Additionally, the experts say, economic integration within the region is also lagging behind. “African economies are substantially unconnected to the rest of the world.
"Secondly, African economies largely are unconnected to each other,” said Mandy Lamb, the country manager for Visa in South Africa on Tuesday.
The index, which measures the extent of economic integration in sub-Saharan Africa, concluded that SA was the “most globally integrated economy in Africa” and that other countries in the region, although still behind, could improve.
The region was also said to offer “major growth potential through greater regional integration”.
South Africa leads the Southern African region and the continent’s economic integration rankings after rising by nearly three points to 66.7 points while Mozambique is marginally up at 42.5 points.
Zambia had substantially raised its ranking by as much as 11 points after it climbed upto 37.2, with Zimbabwe remaining below it with 31.2 points.
Ghana leads West Africa with 52.5 points while Nigeria – Africa’s largest economy – was placed below it at 40.5 points. In East Africa, Kenya had a top score of 55 while Uganda and Tanzania are closely behind, with 48.3, 47.1 and 45.6 points respectively.
Even though, South Africa, Kenya and Ghana topped the Southern Africa, East Africa and West Africa regions, Visa notes in the report that the three countries are still “a long way off the global” standards with the “the index results (flagging) the need for further structural improvements” to enhance economic integration within the region and with other global economies.
“Africa stands to gain from a sustained structural benefit brought about by the opening up of African economies to each other and to the world at large."
Visa said it was working with its partners to drum up and drive "cross-border integration to open up money flows across the region,” noted Lamb.
Visa notes in its report on the index that economic growth in Africa is likely to continue, with regional economies expected to attain average yearly growth rates of nearly 5.5% this year. Africa has a collective gross domestic product (GDP) of about $1.9 trillion, with the figure expected to top $2.6 trillion.
The Africa Economic Integration Index study was carried out with assistance from the Gordon Institute of Business Science visiting professor, Adrian Saville and Dr Lyal White, director for the Centre for Dynamic Markets and senior Lecturer at GIBS.
