A new report from Legatum Institute, the Africa Prosperity Report 2016, ranked South Africa as the most prosperous country in Africa at the number one position.
Other countries in the top ten spot are: Botswana, Morocco, Namibia Algeria, Tunisia, Senegal, Rwanda and Burkina Faso.
The report noted that Rwanda is the most improved country since 2009, rising 10 ranks within Africa while Tanzania is the least improved country since 2009, falling five ranks within Africa.
Central African Republic is the lowest ranked country in 2016.
The authors of the report noted that the Index offers an important note of reassurance as governments and leaders across the continent face the challenge of delivering prosperity with lower growth,
The relationship between wealth and prosperity across sub-Saharan Africa is relatively weak. In terms of prosperity delivery, a country’s wealth level is statistically irrelevant, it said.
The report further explains that poor countries can, and do deliver far greater prosperity than countries with many times their wealth.
It also adds that, where the economy proves far more important for prosperity delivery is not in its expansion, but in its structure.
The Prosperity Index shows that those countries that have best delivered prosperity with their wealth tend to have more complex economies.
The report also adds that, metal and chemical products tend to be more complex, as fewer countries are capable of producing and exporting them. Conversely, unprocessed raw materials, like tin, ores and whole cocoa beans, tend to be less complex, as the capability set to produce them is common.
An economy is complex not only when it exports highly complex products, but also when it exports a wide variety of different products. African economies that have not met expectations on prosperity fail on both dimensions of complexity, it noted.
The 2016 Africa Prosperity Report underscores the importance of having vital foundations in place in order to achieve prosperity and also provides comprehensive view of what’s happening in Africa beyond traditional economic indicators, it casts a new perspective on enduring policy changes.
By Pamela Ofori-Boateng
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