Barclays considers SA as best for potential UK trade

According to the first edition of the Barclays Africa Trade Index, South Africa ranked second out of 31 sub-Saharan countries in terms of abundance of opportunities. The country is ranked after Nigeria and first for openness and ties to other African states, according to the index, commissioned by London-based bank Barclays. “While South Africa is the standout performer in the overall index, Nigeria arguably represents the most exciting long-term opportunity for UK businesses,” Barclays said in the report published yesterday. “However, its performance in terms of openness, 12th, and intra-African connectivity, 16th, means that Nigeria still has a long way to go before it can hope to compete with South Africa as a regional trade hub or as a gateway to other African markets.” Growth in South Africa, the continent’s most developed economy, has slowed amid power blackouts and rising interest rates and inflation. Nigeria’s economy, hurt by the slump in the oil price, is still forecast to expand 4.8% this year by the International Monetary Fund, against 1.2% for South Africa. “The trader and investor appetite for engagement with sub-Saharan Africa has picked up considerably in recent years,” Barclays said, adding that the UK exported about £8.2bn (N$168.8 billion) of goods to sub-Saharan countries in 2013 and exports increased 6% annually since 2004. “The most populous states are the most prominent in terms of trade opportunity in the Barclays Africa Trade Index and their future prospects on the whole suggest rising incomes, an expanding middle class and much larger and more sophisticated consumer markets.” Nigeria, Ethiopia, the Democratic Republic of Congo, South Africa and Tanzania all rank in the top six performing countries on trade opportunity, while Ethiopia, Congo, Tanzania and Nigeria, together with Ghana and Mozambique, lead in average economic growth over the past five years, Barclays said. JOHANNESBURG BLOOMBERG