VENTURES AFRICA – Nigeria’s capital Abuja, and commercial city Lagos, have been rated as the second and fourth most expensive African cities respectively, according to an index by theEconomist Intelligence Unit (EIU) on 25 African cities just ahead of the Nigerian Summit 2013.
The index scored Abuja’s cost of living to 107.4, with Luanda following with 101.8, while Lagos had a total expenditure score of 100.8.
In terms of consumption of alcoholic beverages, tobacco and narcotics, Sudan’s Khartoum listed highest scoring 121.3. Abuja came 12th with a score of 78.3, Lagos on a score of 63.8, emerged 21st, while Douala ranked least with a 46.9 consumption rate.
THISDAY reported: “According to the EIU, per capita expenditure is higher in each of the sampled cities, as the index indicates that citizens in cities spend 94.4 percent more, per capita, than their counterparts in the countryside.”
“Africa is urbanising fast and cities are attracting more and more migrants. As a result, we are witnessing the emergence of “super cities”- each bringing considerable opportunities. The demographic profile of these cities can be much different than the national level picture,” the EIU stated.
Even though, it says challenges remain, which include corruption, poor roads, inefficient border posts, inadequate railway networks, poor skill base, congested ports, and unwitting airports, among others.
To the EIU, to expand, companies need Africa city-level data and analysis, as “companies looking to expand into Africa want to concentrate their strategy where growth and demographics are most favourable – in major cities. It is not enough to plan a strategy around nationally-forecasted growth, but rather to have critical forecasting and business information on a particular city.”
The Economist Intelligence Unit also notes that 25 African cities present best opportunities for growth – based on key economic drivers, client feedback and a survey of economists.
In Corporate Network members, the EIU identifies 25 African cities (across 19 countries) that are of particular interest. The EIU collects and analyses the data needed to support the case and strategy for market entry.