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

Perception How foreign investors see AfricaWhy not? Africa’s attractiveness slipsDespite Africa’s strong fundamentals, investors’ retrospectiveviews on how the region’s attractiveness has changed in oneyear, indicating an increase among those who believe that it hasremained constant, and a drop in those who saw an improvement.Even though optimism for the coming years has also falteredcompared with one year ago, the total percentage of positiveresponses remains high.A decline in Africa’s perceived attractivenessFifty-three percent of respondents to our survey say Africa’sattractiveness as a place to do business has improved over thepast year. Yet this result is down seven percentage points on thefindings of our last survey, published in 2014. By this measure,Africa’s attractiveness, though still strong, is at its lowest since ourAfrica’s past attractivenessdown by seven percentage pointsOver the past year, has your perceptionof Africa’s attractiveness as a place to do business …?survey began five years ago. Perceptions differ according towhere investors are based. This year, fewer decision-makers inAsia (49.6%) and Europe (54%) believe Africa’s attractiveness isimproving. But executives from North America (49.9%) were morepositive than last year — optimism reflected in the increase of FDIprojects launched by North American companies.Declining optimism about prospects for doing business in Africais also apparent when investors are asked about Africa’s futureattractiveness. Although a strong majority (69%) of respondentsremain positive about the continent’s investment appeal overthe next three years, the proportion of optimists has fallen fourpercentage points since our 2014 survey.Africa’s future attractivenessdeclines by four percentage pointsOver the next three years, do you think the attractivenessof Africa as a place for companies to establish or developactivities will …?7% 11%24%28%14% 17% 20%25% 19%26%5%19%4%21%7% 10% 14%16% 14%15%66%60% 56% 60%53%71% 73% 72% 73% 69%2011 2012 2013 2014 20152011 2012 2013 2014 2015Improved (includesresponses for significantlyand slightly improved)Deteriorated (includesresponses for significantlyand slightly deteriorated)Improve (includesresponses for significantlyand slightly improve)Deteriorate (includesresponses for significantlyand slightly deteriorate)Neither improved nordeterioratedCan’t sayNeither improve nordeteriorateCan’t saySource: EY’s 2015 Africa attractiveness survey (total respondents: 501).Source: EY’s 2015 Africa attractiveness survey (total respondents: 501).28 EY’s attractiveness survey Africa 2015 Making choices