This presentation gives a brief comparison between the two largest African economies on the basis of various macroeconomic parameters.

1. A comparison of the economies of
South Africa and Nigeria
Presented by:
Arun Kumar Singh
17p239

2. Nigerian economy v/s South
African economy
South African Economy Nigerian Economy
Economic indicator South Africa Nigeria
GDP Growth Rate -0.7 % -12.92 %
Unemployment Rate 27.7 % 14.2 %
Inflation Rate 5.1 % 16.1 %
Interest Rate 6.75 % 14 %
GDP 295 USD Billion 405 USD Billion
GDP per capita 7504 USD 2458 USD
3% 5%
17%
10%
22%
28%
12%
3%
South Africa
23%
5%
11%
15%
3%
42%
1% 0%
Nigeria
GDP Break up

3. Nigerian economy v/s South
African economy
Nigerian economy South African Economy
Export Import
Major trade partners
India- 15%
Netherlands- 10%
Spain- 9.5%
Brazil- 8.2%
France- 5.8%
Major trade partners
China- 22%
USA- 10%
Belgium- 7.3%
Netherlands- 6.1%
India- 6.0%
Major commodities
Minerals, fuels & distilled
products- 91%
Major commodities
Mineral fuels & oils- 16%
Machinery- 16%
Vehicles- 9.6%
Electrical & electronics-
7.6%
Cereals-5.3%
1. Low capital budget execution rate (51%)
2. Overdependence over exports to pay for imports
3. Corruption, crime and terrorism, specifically Boko
Haram insurgency
4. Unemployment
5. Poor infrastructure and weak manufacturing &
processing base
Key issues & challenges
1. Nigeria needs to reduce dependence on exports by opening
to diasporas and FDI inflows, especially into government
coffers, or into infrastructure activities that are currently
under government monopoly.
2. Nigeria needs to rebuild rail transportation and energy
infrastructure nationwide to make agriculture, manufacturing
and mining more competitive.
Recommendations
With stabilizing oil prices & production, Nigeria can expect a resumption of growth, a moderation of inflation, a return of stability to
the foreign exchange market, a convergence of exchange rates, and a sustained strengthening of the inter-bank rate.

4. Nigerian economy v/s South
African economy
Nigerian Economy South African Economy
1. Education
2. Immigration
3. Inequality( high Gini coefficient-.6338)
4. Struggling mining companies due to weak commodity prices,
labor issues, etc
5. Land reform (limit on land holding- 12,000 hectare)
6. State owned enterprises
Export Import
Major trade partners
China- 9.9%
USA- 7.9%
Germany- 7.6%
Botswana- 5.4%
Namibia- 5.1%
Major trade partners
China- 18 %
Germany- 12%%
USA- 6.8%
India -4.2%%
Saudi Arabia- 3.8%
Major commodities
Pearls, metals,etc- 16%
Vehicles-12%
Ores slag & ash-10%
Mineral fuels, oil, etc-
9.6%
Major commodities
Machinery- 14%
Mineral fuels & oil- 13%
Electrical equipments-
11%
Vehicles-7.7%
Key issues & challenges
1. With consumption rising in markets throughout sub-Saharan
Africa and Asia, South Africa could expand its agricultural
exports to huge extent. This could be a key driver of rural
growth, benefiting the nearly one in ten South Africans who
depend on subsistence or smallholder farming.
2. With the right investments, service businesses could ramp up
exports to the region; and government can help by promoting
regional trade deals.
3. South Africa can draw on its skilled labor to grow into a
globally competitive manufacturing hub focused on high-value
added categories such as automotive, industrial machinery
and equipment, and chemicals.
4. Natural gas plants—which are fast to build, entail low capital
costs, and have a low carbon footprint—can be developed
diversify the power supply.
Recommendations

5. • http://focusafrica.gov.in
• data.worldbank.org
• https://tradingeconomics.com
• www.afdb.org
• http://mobius.blog.franklintempleton.com
• https://economicconfidential.com
References & Webliography