Executive Briefings

Africa Attracts Businesses, But Internet Infrastructure Requires Much More Development

Africa is becoming more attractive to manufacturers and other businesses, but the 2012 BCG e-Intensity Index reveals inconsistency in Africa. Governments of the countries moving up the rankings look to encourage internet use among consumers, businesses and within government itself because they recognize that it can be a powerful edge in the competitive global economy. Other countries risk falling further behind.   Is the glass half empty or half full? This is the question that the results of the 2012 BCG e-Intensity Index pose to governments across Africa.

On the one hand, e-Intensity Index scores are rising quickly for many of the 14 nations on the African continent that are included in the 2012 list"”more so than those of developed nations and many other developing economies. On the other hand, all of these nations are starting from very small bases, and even those with increased scores are barely staying even or are falling down the global rankings. South Africa, which has the most developed economy in Africa, ranked only sixty-fourth out of 85 countries on the e-Intensity Index. Nigeria, the most populous, ranked eighty-third.

The e-Intensity Index measures countries according to three gauges of internet activity: enablement (50 percent weighting; how well built is the infrastructure and how available is access?), expenditure (25 percent; how much money is spent on online retail and online advertising?), and engagement (25 percent; how actively are businesses, governments, and consumers embracing the Internet?). The Index shows not only how one country compares with others but also where a country's strengths and weaknesses lie within the three dimensions.

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Keywords supply chain management IT, value chain IT, African online commerce, e-business in Africa, interconnectedness in African enterprises

On the one hand, e-Intensity Index scores are rising quickly for many of the 14 nations on the African continent that are included in the 2012 list"”more so than those of developed nations and many other developing economies. On the other hand, all of these nations are starting from very small bases, and even those with increased scores are barely staying even or are falling down the global rankings. South Africa, which has the most developed economy in Africa, ranked only sixty-fourth out of 85 countries on the e-Intensity Index. Nigeria, the most populous, ranked eighty-third.

The e-Intensity Index measures countries according to three gauges of internet activity: enablement (50 percent weighting; how well built is the infrastructure and how available is access?), expenditure (25 percent; how much money is spent on online retail and online advertising?), and engagement (25 percent; how actively are businesses, governments, and consumers embracing the Internet?). The Index shows not only how one country compares with others but also where a country's strengths and weaknesses lie within the three dimensions.

Read Full Article


Keywords supply chain management IT, value chain IT, African online commerce, e-business in Africa, interconnectedness in African enterprises