Trabajo de Emerging Economies, Wroclaw University of Economics , sobre las economías emergentes de Nigeria, Sud África y Egipto. En ingles.

1. EMERGING ECONOMIES:
SOUTH AFRICA
NIGERIA
EGYPT
ALBERTO PUCHADES SANJUAN
DAVID BONILLO SEVILLA

2. REPUBLIC OF SOUTH AFRICA
• Capitals: Pretoria (executive), Cape Town
(legislative), Bloemfontein (judicial)
• Area: 1,219,092 km2
• Politics: Republic
• Religion: Christianity (79,8%), Muslim (1,9%),
Hindu (1,35%), No religion (11,5%), Others
(5,45%)
• Population: 55,436,359
• Medium age: 26 years
• Grow rate: 1.34%
• Unemployment rate: 25,15%
• Life expectancy: 61,93 years
• Education level: 94,37%

3. POPULATION PYRAMID

4. ARAB REPUBLIC OF EGYPT
 Government: Presidencial Republic
 Population: 95,7 millions of habitants
 Area: 1.001.450 km²
 Density: 87,66 hab/km2
 Religion: Islam (82-93%)
 Language: Arab
 Annual grow rate: 1,6%
 Life expectancy: 71 years
 Unenployment rate: 11,90%

5. POPULATION PYRAMID

6. FEDERAL REPUBLIC OF NIGERIA
• Capital: Abuja
• Area: 923.770 km2
• Politics: federal republic
• Religion: Muslim (50%), Christian (40%),
others (10%)
• Population: 191,835,936
• Medium age: 17.9 years
• Grow rate: 2,4%
• Unemployment rate: 4,28%
• Life expectancy: 53 years
• Education level: 72% in mens; 50% in
womans

7. POPULATION PIRAMYD

8. ECONOMY SOUTH AFRICA
 GDP (294,8$ billions) by sector:
 Agriculture: 2.4%
 Industry: 28,95%
 Services: 68,71%
 Labour force: 21,7 million people
 Destinations of exports: China ($6.81B), United States ($5.47B), Germany
($5.26B), Botswana ($3.71B), Namibia ($3.53B)
 Destinations of imports: China ($12.8B), Germany ($10B), United States
($4.61B), India ($3.24B), United Kingdom ($2.67B)
2%
29%
69%
% GDP
Agriculture Industry Service

9. EXPORTS SOUTH AFRICA

10. IMPORTS SOUTH AFRICA

11. TRADE BALANCE SOUTH AFRICA:
IMPORTS AND EXPORTS

12. WHY YOU SHOULD CHOOSE TO INVEST IN
SOUTH AFRICA?
STRONG POINTS WEAK POINTS
• High market potential, well
developed infrastructures and a
reasonably competitive domestic
economy.
• Democracy is also well-established
with transparent and contested
elections.
• Has put into place economic
reforms, which have led to macro-
economic stability, as well as tax and
customs reductions.
• Has a large and active stock
exchange.
• The tourism and retail sectors also
have great potential.
• Has been an increase in labour
strikes in recent years.
• Violent crime and corruption
continue to be widespread.
• Access to electricity is also
increasingly problematic.
• Although unemployment is high,
high-skilled labour is in short-supply
and immigration laws make it
difficult to hire foreign workers.
• The import-export process can also
be cumbersome.

13. TRADE AGREEMENTS SOUTH AFRICA
 The African Growht and Opportunity Act (AGOA)
 Trade Agreement between the European Union and South Africa
 The Southern African Development Community (SADC)
 Trade Agreement between Zimbabwe and South Africa
 Trade Agreement between Southern Africa Customs Union (SACU) and
European Free Trade Association (EFTA) states
 US-Southern African Customs Union Free Trade Agreement (SAUC)

14. ECONOMY EGYPT
 Currency: Egyptian pound
 GDP: 336,3 billion USD (2016)
 Grow of GDP (2015/2016): 4,3%
 GDP/hab: 3.549,49 USD
 Human development index: 0,682
 Gini index: 0,30
 Main industries:
 Services (54,6% of GDP): Tourism,
Public sector and Suez Canal
 Agriculture (11,2 of GDP): 30% of labor force
 Industry: (34,2% of GDP)

15. GDP Estructure
Egypt: Distribution of gross domestic product (GDP) across econo
2006 to 2016
ShareofGDP
14.07%14.07% 14.07%14.07% 13.22%13.22% 13.63%13.63% 13.99%13.99% 14.52%14.52% 11.11%11.11% 10.97%10.97% 11.06%11.06% 11.15%11.15% 11.93%11.93%
38.43%38.43% 36.76%36.76% 37.91%37.91% 37.55%37.55% 37.53%37.53% 37.63%37.63%
38.68%38.68% 38.8%38.8% 38.91%38.91% 36.23%36.23% 32.89%32.89%
47.5%47.5% 49.17%49.17% 48.86%48.86% 48.82%48.82% 48.48%48.48% 47.85%47.85% 50.22%50.22% 50.24%50.24% 50.04%50.04% 52.61%52.61% 55.18%55.18%
Agriculture Industry Services
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016
0%
25%
50%
75%
100%
This statistic show
domestic product
Egypt from 2006 t
contributed aroun
Egypt, 32.89 perce
55.18 percent from

16. EXPORTS AND IMPORTS EGYPT
 Exportations (22,4 billion $)
 Gold (11,8%); Crude oil (8,1%); Refined oil (3,6%); Nitrogen fertilizers (3,4%); Insulated wire
(3,4%); Citrus (2,6%)
 Imports (57,7 billion $)
 Refined oil (5,7%); Natural gas (5,5%); Cars (4,3%); Packaged medicines (3%); Wheat (2,7%); Corn
(2,6%); Crude oil (2,4%)
 Comercial balance: 35,2 billion $ of imports

17. EXPORTS AND IMPORTS EGYPT
3.42
3.48
3.78
5.01
10.4
0 2 4 6 8 10 12
ITALY
EEUU
RUSSIA
GERMANY
CHINA
MAIN IMPORT COUNTRIES 2016
(Billion $)
1.05
1.44
1.47
1.75
2.83
0 0.5 1 1.5 2 2.5 3
UUKK
TURKEY
ITALY
SAUDI ARABIA
UNITED ARAB EMIRATES
MAIN EXPORT COUNTRIES 2016
(Billion $)

18. TRADE BALANCE EGYPT

19. FOREIGN DIRECT INVESTMENT

20. ESTRUCTURE OF FOREIGN DIRECT
INVESTMENT
Main Investing Countries 2014-2015,
in %
UK 47.4
UAE 10.6
USA 7.0
Belgium 5.4
Saudi Arabia 2.5
France 2.0
Netherlands 1.9
South Korea 1.8
Germany 1.6
Qatar 1.5
Main Invested Sectors 2014-2015,
in %
Oil sector 53.2
Finance 3.8
Real estate 3.7
Manufacturing 3.4
Construction 1.5
Communication and information 0.5
Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. **
The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy
Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New
Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures
the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.
FDI INFLOWS BY COUNTRY AND INDUSTRY
Source: Central Bank of Egypt, Statistical Bulletin December 2016 - Latest available data.

21. STRONG/WEAK POINTS TO INVEST IN EGYPT
 Geopraphicaly strategic location
 Cheap and relatively qualified
labour force
 Growing population
 Energy resources
 Invest in transport ways
 Liberalization policy and improving
appeal to foreign inventors
 No privatization
 Delay infraestructure
 Bureaucrazy
 Shortage of skilled labour
 Limited credit
 Terrorism/not safety place
 Corruption index: 34%

22. TRADE AGREEMENTS EGYPT
 The General Agreement on Tariffs and Trade (GATT)
 The General Agreement on Trade in Services (GATS)
 European Union-Egypt Free Trade Agreement (Association Agreement)
 Free Trade Agreement with EFTA States
 Turkey-Egypt Free Trade Agreement
 Greater Arab Free Trade Area Agreement
 Agadir Free Trade Agreement among Egypt, Morocco, Tunisia and Jordan
 Egyptian-European Mediterranean Partnership Agreement
 The Common Market for Eastern and Southern Africa (COMESA)
 Pan Arab Free Trade Area (PAFTA)

23. ECONOMY NIGERIA
o GDP (405.083$ billions) by sector:
 Agriculture: 20.3%
 Industry: 23.6%
 Services: 56.1%
o Labour force: 74 million people
 Destinations of exports: India ($9.1B), Spain ($4.36B), South Africa ($4.58B), Brazil
($4.14B), Netherlands ($3.37B)
 Destinations of imports: China ($13.6B), United States ($3.24B), Netherlands ($3.22B),
India ($2.28B), Belgium-Luxembourg ($1.98B)
20%
24%
56%
% GDP
Agriculture Industry Service

24. EXPORTS NIGERIA

25. IMPORTS NIGERIA

26. TRADE BALANCE NIGERIA:
IMPORTS AND EXPORTS

27. WHY YOU SHOULD CHOOSE TO INVEST IN
NIGERIA?
STRONG POINTS WEAK POINTS
• With a population of over 190 million
people, Nigeria is the most populous
country in Africa and therefore among
its largest markets.
• The country has abundant natural
resources and an inexpensive workforce,
strategically located near many
West African countries.
• The Nigerian Government tends to
pursue a policy of economic
liberalization, promoting public-
privatepartnerships and
strategic alliances with foreign firms.
• Poorly developed transport and energy
infrastructure, which result in high
operating costs.
• Inefficient government institutions
and corruption.
• Inefficient judicial system and
unreliable dispute settlement
mechanisms.
• High tax burden; a restrictive trade
policy.
• Increasing lack of security, especially in
connection with the extremist
group Boko Haram operating in the
north-east of the country.

28. TRADE AGREEMENTS NIGERIA
 Global System of Trade Preferences among Developing Countries (GSTP).
 Economic Community of west African States (ECOWAS).
 World Trade Organizations (WTO).
 Others Bilateral Investment Agreements.

29. COMPARED GDP

30. SHELL SOUTH AFRICA AND
NIGERIA
 Shell South Africa is part of the Royal Dutch Shell Group and began trading in
Africa in 19 century, focusing on paraffin and kerosene.
 The company was the first to provide light and heat to communities across
Southern Africa.

31. UNSUCCESFUL PERFORMANCE
 Despite a multimillion pound payout,
fisherman across the Niger Delta will
continue to count the cost of Shell’s oil
spills.
 Shell must pay 55 million pounds of fine.
 The bad reputation of shells affected a
business with South Africa.

32.  His first wind turbine supply contract with
Egypt was in 2003
 Now, they are leading the Eolic Energy
Market in the country

33. SUCCESFUL PERFORMANCE
How?
 Wind farm installation agreements
 Turnkey agreements:
 They instal and begins the activity
and after, the company belongs to
a local company or government
 Operation centre and maintenance
service center
Why?
 Adapted products to the specific
needs of Egypt.
 Guaranties
 International financial support
 Preferential treatment to access
public tenders

34.  Sainsbury's is a supermarket chain in the
United Kingdom, the second largest in the
country
 Third largest chain by revenue, after Tesco
and Asda
 They decided to open 100 stores in Egypt
and they have been put out of the market
quickly

35. UNSUCCESFUL PERFORMANCE
How?
 They began with a Joint Venture
 They open more than 100 own
stores around the country
Why?
 They didn’t properly investigate:
 Market
 Partners
 Lack of sensitivity to local
conditions
 Low GDP
 Disorganized country

36. THANK YOU FOR YOUR ATTENTION