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

www.ey.com/attractivenessOn the whole, more inclusiveness is needed in Africa. Thisincludes not just maintaining political stability, but also improvingthe quality of government policies, enhancing the efficiency ofinstitutions, encouraging respect for the rule of law and citizens’political rights, and promoting rules to foster accountability andtransparency. Inclusiveness has to be built. And the processrequires concerted efforts by African countries themselves, andalso their partners. But, it is equally important to remind investorsnot to assume the entire continent is unstable. Business decisionmakersmust remember that Africa is made up of 54 nations withdiffering economic and political dynamics.Responding to investor appeals to reform Africa’s business environmentForeign investors continue to highlight Africa’s operatingenvironment as an ongoing challenge to doing business on thecontinent. African countries generally lag other emerging marketsin the World Bank’s Doing Business 2015 ranking. Only threecountries, Mauritius, Rwanda and South Africa, are among thetop 50. Business incorporation continues to be more costly andexpensive in Africa than in any other region. However,it is important to note progress by SSA countries in reducingburdensome business regulations. Since 2005, all SSA nations inthe rankings have implemented reforms to make it easier to dobusiness, led by Rwanda, and followed closely by Mauritius andSierra Leone. 53 These initiatives are continuing. However, someof SSA’s largest economies (including Nigeria and Angola) stillremain very complex environments for business.What do you think are the main measures that African governments can take to improve the region's business environmentand increase its attractiveness for investment?26.8% 16.8% 16.7% 16.6% 13.1%Build sustainablegovernance systemsStrengthen corporatetax reliefs and taxbreaks for investorsInvest in education andtraining programs fora qualified workforceEnforce effectiveanti-bribery andcorruption initiativesInvest in and encourageinfrastructuredevelopment10.3% 10.2% 8.5% 7.8%Focus on public-privatepartnershipsIncrease measuresaimed at fosteringinternational andbilateral tradeIncrease incentives forcompanies to invest in R&Dand innovative technologiesImprovesecurity7.4%Can't say(do not suggest)Source: EY’s 2015 Africa attractiveness survey (total respondents: 501).53 “SSA Implements the Most Business Regulatory Reforms Worldwide,” World Bank website,www.worldbank.org/en/news, accessed 29 October 2014.EY’s attractiveness survey Africa 2015 Making choices33