EmergingMarkets Middle

East&Africa

AfricasEconomicPerformance
20012008:Buoyantgrowth(5.6%ayear).
End2008Early2009:Sharpdecline(2.9%ayear).
End20092010:Resumedgrowth(4.5%ayear).
Anticipatedincreaseinaidby11%(between2008
and2010).

DoingBusinessinAfrica
PoliticalGovernance:33countrieswithatleast2successiveelections.
Telecommunications:mobilesubscriber561millionon2012.
Diaspora:Approximately$12billionremittancestoSubSaharaAfrica
alonein2007.
SolidprogressinBusinessenvironment reforms.
MineralReserves:30%oftheworldsshare:Gold(40%),Cobalt(60%)
andPGM(90%).

AfricaBusinessHubs
Moving In
Major investment
projects in other
African nations by
South African
businesses since the
end of apartheid
Energy & Oil
Aviation
Telecommunications
Manufacturing
Hotels & Retail
Mining
Source: Business Map; New York Times

Banu Qurayza

CountryExamplesofReforms
67 regulatoryreformsregisteredin29ofthe49 subSaharanAfricancountries.
Rwandarankedastheworldstopreformer.
Liberia,Ethiopia,GhanaandTogo:streamliningofinspectionprocesses.
Uganda,Sudan:improvedcustomsprocesses.
Cape Verde:improvedaccesstocreditinformation.
Cameroon:eliminatedlicencetaxfornewbusinesses.

ChallengestoDoingBusinessinAfrica
ProgressinoveralleaseofDoingBusinessRankingsremainsslow.
PoweroutagesamongthehighestintheWorld.
Inlandtransportationcostshigherthanotherregions.
AttractingFDIintodiversifiedandhighervalueaddedsectorsstillachallenge.
Africanfirmsaresomeofthemosthighlytaxedintheworld.

InfrastructureandEnergyOpportunities
BridgingofAfricasinfrastructuregapestimatedat$93billionayear:
withhighreturns.
Oilreservesof117.481billionbarrelsin2007:(9.49%oftheworld's
total).
Naturalgasreservesof14.58trillioncubicmetres,(8.22%ofthe
worldtotal).
17countriesinAfricahavethelargestpotentialforsolar,wind,hydro,
andgeothermalenergy.

Product Category

Export World

Import World

Basic Foods

14,875,274

21,052,701

Beverages & Tobacco

1,934,175

1,653,717

Ores, Metals & Precious Stones

19,304,114

3,931,312

Fuels

81,278,815

17,188,542

Manufactured Goods

19,442,801

34,861,887

Chemical Products

6,829,963

16,684,141

Machinery & Transport Equipment

9,685,665

53,868,421

153,350,808

149,240,722

Total
Exports

% Contribution

Imports

% Contribution

EU

41.9

China

28.7

ROW

17.87

India

12.9

USA

17.6

USA

11.3

Asia

6.6

France

11.2

Intra Rec

5.8

Brazil

7.4

China

5.5

UK

7.4

ROA

2.81

Japan

2.9

MENARegion Arabregion

Countries in the
Middle East:
- Turkey
- Cyprus
- Iran
- Iraq
- Kuwait
- Syria
- Lebanon
- Israel
- Jordan
- Egypt
- Saudi Arabia
- Oman
- Qatar
- Yemen
- UAE
- Bahrain

The Middle East in the Twenty-First Century

Regional conflicts Security issues
Bilateral trade agreements with the US and EU
(e.g., Saudi Arabia, Israel, Jordan)
Restrictions and trade sanctions (e.g. Iran)
Dependence on oil revenues and state-sponsored
subsidiaries
Large cultural/economic/political differences
among countries in the Middle East. (e.g. Turkey,
Israel, Saudi Arabia)

Potential Economic Opportunities

Policies intended to attract FDI and to diversify
economically.
Privatization of traditionally state owned
enterprises.
Progress on building institutional infrastructure
(e.g., Israel, Turkey, Kuwait)
Population growth.
Regional integration efforts.
Reconstruction efforts in Iraq.

Key Points
Middle East is culturally, economically and politically
diverse (Arabs, Kurds, Iranians, Turks).
Resource rich countries with stable governments
with high rates of economic development (e.g.
Saudi Arabia, Qatar, Kuwait).
Countries with close trade relationship with the rest
of the World (e.g., Turkey, United Arab Emirates).
Potentially lucrative market but typical developing
country market environment.
Less fortunate countries of the Middle East (e.g.,
Syria, Iran, Iraq, Jordan).

Key Points
Regions rich history, culture and religion, and their
implications.
Critical role of government in the Middle East.
The role of skepticism in the Middle Eastern World.
Islam is the glue of the Middle Eastern social fabric.
Collectivist, hierarchical and close knit societies.
The importance of shame / face / honor / consensus /
respect for authority / seniority.