The Africa Business Confidence Index (ABCI) for December shows expansion in both the index for manufacturing and non-manufacturing sectors in Africa. The difference compared to November in the manufacturing index is a decrease of 1.2 percentage points, and in the non-manufacturing index a plus of 3.6 percentage points. The index measures business confidence in the manufacturing and non-manufacturing private sector throughout Africa. Results are published on a monthly basis.
The December ABCI results indicate confidence and growth with an index of 52.2 and 56.1 for the manufacturing and non-manufacturing sectors respectively. A level of 50 and above indicates expansion. Business professionals from more than 30 countries in Africa participated in the survey making the results a reliable gauge and early indicator of the underlying economic activity on the African continent.
The ABCI follows a similar methodology and logic as the PMI indices which set the global standard. Members of the Africa Business Panel are business professionals and entrepreneurs working in Africa’s private sector. On a monthly basis they are invited to report change from the previous month on the following indicators: new orders, production, employment, supplier deliveries, inventories, costumer inventories, prices paid, backlog of orders, new export orders and imports for the manufacturing sector, and similar indicators for the non-manufacturing sector. For more information on the survey and index methodology please visit www.africabusinesspanel.com
December ABCI Results Highlights:
Private sector business confidence index for the African continent
- African business professionals from more than 30 countries in Africa participated in this survey
- Manufacturing sector confidence index 52.2; non-manufacturing 56.1
- These levels indicate expansion for the manufacturing and non- manufacturing sectors in December
Whenkeremma Okezie, Geomarine Systems in Port Harcourt, Nigeria: "Energy, commodities and infrastructure projects will dominate the business climate. A lot of foreign exchange will continue to be spent by African businesses for input into their projects. This situation also presents opportunities for investors in basic technologies and technical inputs - foundry products, small tools, ropes, cable & wire, fabrication."
Minoo Dastur, Nihilent in Johanesburg, South Africa: "Businesses and Government entities in many African countries continue to seek sustainable improvements that provide both incremental and radical competitive advantages. These translate into flexibility to provide a wider range of services, facilitate rapid evolutionary changes and constantly reduce costs of delivering increasing quality of services. The cycle times are constantly being questioned and improvements sought as the end-customers begin demanding improvements. Home grown African companies are becoming more responsive to their markets and are evolving into very discerning buyers of services that help them achieve the same."
Thomas Mims, Emerging Africa in New York, USA: "Being based in the USA and working in Africa since 1980, we are presently witnessing Africa being looked at very seriously by investors. The level of interest is at an all-time high and steadily increasing."
Akinyele Aluko, The Lagos Chamber of Commerce & Industry, Nigeria: "Africa is still largely import dependent and at the same time low on export of finished products to other parts of the world. This has a negative impact on its balance of payment and foreign reserve structure."
Moses Mwangi, Sanofi Pasteur in Nairobi, Kenya: "During December, thanks to better exchange rate versus USD, there is a better feeling about the business trend. Inflation remains a key challenge."
About Africa Business Panel
Africa Business Panel (ABP) is a joint initiative of Africa Business Communities www.africabusinesscommunities.com , a fast-growing network of African entrepreneurs and business professionals, and NarrowMinds - www.narrowminds.com, a leading architect of online market research and loyalty programs.
Africa Business Panel generates reliable indices on business developments and economic outlook in Africa. In doing so, Africa Business Panel wishes to contribute to the continent’s business reputation and produce in-depth market research data for governments, the business community and international organizations. Africa Business Panel provides intelligent matches for African business professionals with the rest of the world which results in promising business opportunities.
Join the Panel
Business professionals based in Africa are invited to join the Africa Business Panel. As a member of the Panel your insights and opinions directly contribute to the Africa Business Confidence Index. Panel members benefit by participating: the outcome of the survey results are shared with Panel members directly and in greater detail than with non-members. All surveys are permission based, allowing you to decide when and to what degree you wish to participate. Your personal details are treated strictly confidential by the Africa Business Panel. No personal information is ever published or sold to third parties. If you qualify, please go to www.africabusinesspanel.com and click on Register and shine your light on the business climate in Africa!
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