EY-africa-attractiveness-survey-june-2015-final

www.ey.com/attractivenessWhy here? Natural resources, growth and marketsare the big drawsThis year’s survey shows that Africa’s investment appeal isbuilt on a set of stable, fundamental factors. Natural resourcesremain a strong draw for foreign investors, despite the growingdiversification of FDI in Africa. This suggests that naturalresources in Africa, including agriculture, still have considerableinvestment potential. At the same time, the strengtheninginvestor focus on consumer-facing activities reflects strongeconomic and demographic growth.Please rate the following parameters for investment in Africa as very, fairly, not very or not at all attractiveNatural resources53.2%23.5%14.4%7.7%1.2%Economic growth30.5%36.6%24.0%8.2%0.6%Domestic markets24.6%36.2%26.8%9.9%2.5%Large, low-costlabor force27.5%32.1%28.0%10.7%1.8%Demographics22.1%35.1%27.0%12.5%3.3%Political and socialenvironment8.9%18.5%37.1%34.3%1.2%Very attractive Fairly attractive Not very attractive Not at all attractive Can’t saySources : EY's 2015 Africa attractiveness survey (total respondents: 501).Natural resources: digging and drillingAfrica is well endowed with natural resources and its mineralwealth has long made it a destination for resource-hungryinvestors. However, only a fraction of them are yet beingextracted. The continent has 8.6% of the world’s proven oilreserves and 7.2% of its natural gas. 35 Africa also has a heftyshare of the world’s minerals — including bauxite, copper,chromium, cobalt, gold, manganese, phosphate, titanium anddiamonds. 36 The African Development Bank forecasts that thecontinent’s natural resources will contribute more than US$30ba year to the revenues of its governments by 2033. 3735 Annual Statistical Bulletin 2014, OPEC, 2014.36 Minerals and Africa’s Development: The International Study Group Report on Africa’s MineralRegimes, United Nations Economic Commission for Africa (UNECA), November 2011.37 “Africa’s mineral wealth: A blessing or a curse?,” African Development Bank Group website,www.afdb.org, accessed 6 February 2015.EY’s attractiveness survey Africa 2015 Making choices25