Think of Ivory Coast and what comes to mind? The war? The one that ended 4 years ago? I would hope that what comes to mind is what the Financial Times reported recently, that Ivory Coast has been transformed “from the worst performer in Africa in 2011 to one of its fastest-growing economies today.”
What does the Ivory Coast environment look like relative to 2011? If you’ve been following my posts, you’ll know that I’m not keen on official statistics when it comes to Africa, they have to be complemented with first-hand information on the conditions relevant to your business. Still, official indicators may help as a starter.
I had a look at those serving as the basis for the Venture Capital & Private Equity Country Attractiveness Index (VCPC Index) 2015. This Index was released recently by my colleague at IESE Business School Heinrich Liechtenstein. Some reference points:
- Globally, the US ranks 1, Spain 27, and Burundi 120;
- At the sub-Saharan African level, South Africa ranks highest (37) and all other 24 SSA countries included in the Index fall into the ranking range of 52 (Zambia) to 120 (Burundi).
Ivory Coast has moved from rank 98 in 2011 up to rank 93 in 2015 out of the 120 countries included in the Index. Not a big improvement, but still an improvement. You can learn about the specifics of this change by digging into the Index. I will just highlight the major improvements here:
- In economic activity it has risen from position 88 to 68: the main driver of this change is the dramatic improvement in expected real GDP growth. The current rate is 8.5%, making the country number 3 in this dimension up from 91 in 2011;
- In human and social environment it has moved from position 106 to 60: This has been driven mainly by an improvement in education and human capital (from rank 90 to 60), and reduced relative levels of bribery and corruption (from 116 to 86);
- In entrepreneurial opportunities it has moved from position 101 to 95: although the improvement is not as substantial as in other dimensions, it’s worth highlighting the progress made in terms of the burdens of starting and running a business (from 110 to 41).
In my opinion, the fact that the improvement in economic growth comes accompanied by an improvement in the human and social environment is to be celebrated. Even the most impressive economic growth, unless it’s accompanied by authentic human and social progress, turns against humanity .
As I said earlier, official statistics need to be complemented with first-hand experience. Today I have given you a glimpse at official indicators – both economic and social. What’s your first-hand experience?