Integration With Other Countries Will Boost Nigeria’s Growth –Report
Nigerian Punch
GREATER regional and global economic integration will promote Nigeria’s growth and development, Visa Integration Index report has found.
The report notes that although the country’s regional integration has improved over time, an improvement in the current level will help the nation to achieve its developmental objectives.
The index measures the degree of economic integration within key trade corridors of the sub-Saharan Africa, namely West Africa, East Africa and Southern Africa.
It says, “Nigeria will benefit enormously from greater integration, as its growing market matures and modernises, and the demand for capital and a diversity of trade partners rises to address the needs of increasing industrialisation, a rising appetite for production and services and growing sophistication in lifestyles.”
The report used four key metrics to measure integration, namely the flow of goods and services or trade, financial integration and the movement of capital, the flow of information and knowledge, and the movement of people.
The model assigns a numeric value to the level of integration, with the global median score being 100.
The report shows that Nigeria, which recently overtook South Africa to become the largest economy in Africa, had score of 40.5 at the end of 2013 on the Visa Africa Integration Index improving from 37.7 at the start of 2011. It, however, notes that at the end of 2012, the index level was virtually the same at 40.6.
South Africa has the highest score on the Visa Africa Integration Index, improving from 61.1 at the start of 2011 to 66.7 at the end of 2013.
South Africa scores highest among the 11 countries measured in the region for global integration with a score of 42.6 out of 50.
The study notes that Nigeria has made significant strides in regional integration efforts where its score increased from 30.8 to 34.8 during the three year period ending 2013.
This, it says, is likely to translate into broader integration across the continent and further afield in global integration.
Kenya scores highest for regional integration, narrowly overtaking 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, according to the report.
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).
The report states, “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
“Findings around openness and increased integration have important implications for the socio- economic advance of African economies based on at least two structural drivers. Firstly, African economies are substantially unconnected to the rest of the world. Secondly, African economies largely are unconnected to each other.”
The report further says, “Despite 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 six half-year periods that make up 2011, 2012 and 2013.”
The study, however, quoted the General Manager, Visa, West Africa, Mr. Ade Ashaye as saying,
“Africa stands to gain from a sustained structural benefit brought about by the opening up of African economies to each other and to the world at large. Visa is also working hard with its partners to drive cross-border integration to open up the money flows across the region.”
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; East Africa- Kenya, Uganda, Rwanda and Tanzania; and Southern Africa-South Africa, Angola, Mozambique, Zimbabwe and Zambia.
GREATER regional and global economic integration will promote Nigeria’s growth and development, Visa Integration Index report has found.
The report notes that although the country’s regional integration has improved over time, an improvement in the current level will help the nation to achieve its developmental objectives.
The index measures the degree of economic integration within key trade corridors of the sub-Saharan Africa, namely West Africa, East Africa and Southern Africa.
It says, “Nigeria will benefit enormously from greater integration, as its growing market matures and modernises, and the demand for capital and a diversity of trade partners rises to address the needs of increasing industrialisation, a rising appetite for production and services and growing sophistication in lifestyles.”
The report used four key metrics to measure integration, namely the flow of goods and services or trade, financial integration and the movement of capital, the flow of information and knowledge, and the movement of people.
The model assigns a numeric value to the level of integration, with the global median score being 100.
The report shows that Nigeria, which recently overtook South Africa to become the largest economy in Africa, had score of 40.5 at the end of 2013 on the Visa Africa Integration Index improving from 37.7 at the start of 2011. It, however, notes that at the end of 2012, the index level was virtually the same at 40.6.
South Africa has the highest score on the Visa Africa Integration Index, improving from 61.1 at the start of 2011 to 66.7 at the end of 2013.
South Africa scores highest among the 11 countries measured in the region for global integration with a score of 42.6 out of 50.
The study notes that Nigeria has made significant strides in regional integration efforts where its score increased from 30.8 to 34.8 during the three year period ending 2013.
This, it says, is likely to translate into broader integration across the continent and further afield in global integration.
Kenya scores highest for regional integration, narrowly overtaking 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, according to the report.
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).
The report states, “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
“Findings around openness and increased integration have important implications for the socio- economic advance of African economies based on at least two structural drivers. Firstly, African economies are substantially unconnected to the rest of the world. Secondly, African economies largely are unconnected to each other.”
The report further says, “Despite 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 six half-year periods that make up 2011, 2012 and 2013.”
The study, however, quoted the General Manager, Visa, West Africa, Mr. Ade Ashaye as saying,
“Africa stands to gain from a sustained structural benefit brought about by the opening up of African economies to each other and to the world at large. Visa is also working hard with its partners to drive cross-border integration to open up the money flows across the region.”
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; East Africa- Kenya, Uganda, Rwanda and Tanzania; and Southern Africa-South Africa, Angola, Mozambique, Zimbabwe and Zambia.
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