Ghana scored 52.5 in the latest Visa Africa Integration Index to become the highest scorer in West Africa, while Nigeria scored 40.5 in the 11 countries survey which measures the degree of economic integration amongst key economic regions in sub-Saharan Africa- West Africa, East Africa, and Southern Africa.
Ghana’s Visa Africa Integration Index score has risen consistently over the period of the survey resulting in achieving the highest score in the region and the third highest of the countries in the study, according to the researchers.
Launching the study in Accra, the Country Manager for Visa in West Africa, Ade Ashaye noted: “Ghana has made substantial progress in recent years – especially toward its regional integration where is has increased in the period measured, but still has a way to go in terms of greater global integration.”
Ghana also has seen a rise in its global integration score from 2011 to 2013, albeit slightly less impressive than the country’s regional score. The slight rise can be attributed almost entirely to a small increase in capital flows, he stated.
This, Mr Ashaye explained was on the back of growing economic prospects coupled with improving macroeconomic management in Ghana. New oil discoveries, a vibrant mining sector and growing agribusiness have all contributed toward greater breadth in capital flows.
But Ghana’s relatively strong Visa Africa Integration Index score is based largely on its regional integration, and obviously its growing linkages and exchanges with Nigeria.
“This is not surprising given Ghana is making economic gains from the exciting new market opportunities in the West African region.
“These developments bode well for Ghana and the broader West African region, and increased regional integration will allow Ghana to benefit enormously from Nigeria’s extensive market,” Mr Ashaye noted.
Professor Saville said that Africa is still the least integrated region in the world, but there are signs of change. “While improving off a modest base, the countries that make up the Index have undergone positive structural transformation over the past decade.
“The Index offers both recent and robust evidence of this: all 11 countries show improvements in economic integration over the period measured, namely the four half-year periods that make up 2011 and 2013.”
Overall, South Africa scores highest amongst the 11 countries for global integration with a score of 42.6 out of 50. Kenya scores highest for regional integration, scoring 27.5 out of 50, narrowly ahead of Ghana.
But all of these countries – South Africa, Ghana, Kenya and the other eight – are a long way off the global median of 50.
The same observation holds for the underlying depth and breadth pillars that make up the Index.
While South Africa scores highest for global depth (48.3 against the global median of 50) and global breadth (36.9); Mozambique scores highest for regional depth (27.3); and Kenya has the highest score for regional breadth (40.9).
Notably, none of these scores achieves the global median of 50. Therefore, while the economic transformation among these African countries is impressive, the Index results flag the need for further structural improvements.
The study offers a detailed analysis of key country clusters in sub-Saharan Africa, revealing strengths and areas of growth potential. The clusters are: West Africa-Ghana and Nigeria; Southern Africa- South Africa, Angola, Mozambique, Zimbabwe and Zambia; and East Africa: Kenya, Uganda, Rwanda and Tanzania.
The 11 constituent countries are highly representative of the region, with a combined population of 437 million people, or 55 percent of the total population at the end of 2012.
The study was carried out in conjunction with Professor Adrian Saville, Visiting Professor of Economics at the Gordon Institute of Business Science (GIBS) in Johannesburg.
Four key metrics to measure integration were used: the flow of goods and services or trade (T), financial integration and the movement of capital (C), the flow of information and knowledge (I) and the movement of people (P).
African Eye News.com
