Monday served as a rude awakening to South Africans. South Africa is no longer the largest economy on the continent. Nigeria’s newly calculated GDP sits at $510 billion, way larger than South Africa’s $384 billion. Rather than feeling sorry about our deflated ego, take a look at how the two economies compare.

Both South Africa’s and Nigeria’s economies rely heavily on exporting commodities, with 95% of Nigeria’s foreign income coming from oil alone. SA’s much more diversified economy and industry sectors are a plus – we generate far more from manufacturing, services and consumer products than the fellows in the north.

Even though Nigeria’s GDP is now higher, South Africa’s GDP per capita is still more than double. But the predicted increase in Nigeria’s population, currently around 170 million, will be seen as an attractor for new business opportunities.

Although Nigeria has become a more attractive destination for investment with its growing economy, South Africa will still be the preferred place to set up business on the African continent for a bit longer. Infrastructure and services in Johannesburg are still much more viable than those in Lagos, and the experience South African businesses have with dealing with international and African enterprises is in our favour.

To read more about how SA’s economy compares to Nigeria’s, click here.

[ Source : MoneyWeb ]