Future prospects in Africa for the transportation & logistics industry. Africa gearing up.

Transcription

1 Future prospects in Africa for the transportation & logistics industry Africa gearing up

2 Methodology PwC 15

3 Methodology As Africa has risen to prominence as an investment destination over the past few years, so the role of transportation and logistics has taken on greater significance. Whether moving resources off the continent or bringing goods and services into its burgeoning economies, Africa s future growth and development will depend on the quality of its infrastructure and the efficiency of its transport networks. Ten African countries profiled Ghana Algeria Nigeria Angola Democratic Republic of Congo Egypt Tanzania Kenya Mozambique In this report, we focus on 10 of Africa s leading developing nations: Algeria, Angola, the Democratic Republic of Congo (DRC), Egypt, Ghana, Kenya, Mozambique, Nigeria, South Africa and Tanzania. The countries were chosen based on their economic significance, their strong growth in recent years and their potential as transportation and logistics gateways. The content of this publication draws on the expertise of specialists in a broad range of areas. Our team comprises PwC industry professionals from PwC s global transportation and logistics group and from PwC Southern Africa s transportation and logistics group as well as from economic research partners, Econometrix, and independent industry experts. South Africa We worked closely with Econometrix, South Africa s leading independent economic consultants. The country profiles featured in this publication are a summary of extensive research carried out by Econometrix and evaluated by our specialists. 16 Africa gearing up

4 Research sources The research results were drawn mainly from five sources: Business Monitor International (BMI), NKC Independent Economists, Africa Infrastructure Country Diagnostic (AICD), International Monetary Fund (IMF), The World Bank, and The World Economic Forum. Commentary in the text that has not been taken from these sources, and that is not our own opinion, is referenced in the endnotes at the end of each section. The accuracy and completeness of information obtained from thirdparty sources, and the opinions based on such information, cannot be guaranteed. Model of analysis Following a five-pillar model, all countries profiled here were analysed in terms of five characteristics and their impact on the transportation and logistics industry: 1. Demographics and resources; 2. Economics; 3. Business environment; 4. Trade and logistics; and 5. Transport infrastructure. The first pillar is focused on the resources of a country, both human and natural, while the second analyses how the country makes use of its resources and turns these into an economic output. Pillar three includes not only a country s business environment, but also political stability and security issues. Within pillar four, a country s trade activity and its trade facilitation logistics (for instance, its customs clearance processes) are analysed. Finally, pillar five is dedicated to each country s transport infrastructure, which is fundamental to the business of transportation and logistics companies. Here we take a closer look at the capabilities of the countries ports, airports, railways, roads and other infrastructure. All findings noted in the country chapters were supported by interviews with executives from companies operating in Africa. A total of 17 interviews were conducted between May and July Investment potential assessment We assessed the 10 countries surveyed against each other in terms of the five pillars mentioned above. No other country was included in the assessment. Each assessment was made on the current state and the fiveyear medium-term prospects. Current-state assessments examine whether investment into the local transportation and logistics sector today would be attractive, average, or unattractive, if only this single characteristic was taken into account. Evaluations of future prospects take into account concrete measures for growth in each country that are set to improve its performance. Visual icons depicting the assessments are shown here: Icon colours depict the current state (2013) Key: Attractive Average Unattractive Arrow orientation shows future prospects Key: Strong improvement expected Some improvement expected Stagnation/marginal change expected Assessments are based on: Key statistics for all five pillars of analysis gathered from thirdparty sources; Broad research on each country, done by Econometrix and PwC; Real-life experience of people who work in Africa; and Expert opinions from our team of specialists. These investment assessments were prepared to help potential investors get to know the risks and opportunities of the main transportation and logistics markets in Africa. They should not be regarded as investment recommendations. PwC 17

5 The information contained in this publication is provided for general information purposes only, and does not constitute the provision of legal or professional advice in any way. Before making any decision or taking any action, a professional adviser should be consulted. No responsibility for loss to any person acting or refraining from action as a result of any material in this publication can be accepted by the author, copyright owner or publisher PricewaterhouseCoopers ( PwC ), the South African firm. All rights reserved. In this document, PwC refers to PricewaterhouseCoopers in South Africa, which is a member firm of PricewaterhouseCoopers International Limited (PwCIL), each member firm of which is a separate legal entity and does not act as an agent of PwCIL. ( )