DHL GCI Ranks Nigeria 49th in Globalisation

DHL Global Connectedness Index (GCI), a comprehensive analysis of the state of globalisation around the world has ranked Nigeria 49th in the world when it comes to the state of globalisation.

The GCI 2012 ranks 140 countries on their global connectedness levels based on international flows of trade, capital, information and people.

Randy Buday, managing director, DHL Express Anglophone Africa, said that while the Sub-Saharan Africa region remains the world's least connected, it averaged the largest connectedness increase from 2010 to 2011.

He said: "Sub-Saharan Africa did perform poorly against Europe, Asia and the Americas but, from a positive perspective, the 5 countries with the largest increases in their scores - Mozambique, Togo, Ghana, Guinea and Zambia - are all from the region. We are confident that, with the increased investment in Africa and a sustained commitment from governments, we will continue to improve these scores year on year. Sub-Saharan Africa is definitely on the correct path when it comes to the growth in global trade and connectivity."

Buday also said that "Nigeria's connectedness scores have been growing steadily since 2007, enabling Nigeria to rise to the 49th rank globally on this year's DHL Global Connectedness Index, up 4 positions versus last year. Nigeria's connectedness gains over the past year were driven by the trade pillar. Nigeria holds the 3rd rank out of the 15 countries in the Sub-Saharan Africa region, and its connectedness is characterised by higher breadth than depth."

Buday explained that depth refers to how much of a given activity is international (rather than domestic). "Breadth complements depth by looking at how broadly the international component of a given type of activity is distributed across countries", he said.

He further stated that the GCI also revealed that in 2011, intra-Africa trade continues to lag far behind its European and Asian counterparts.

"If we want to improve this interconnectivity, we need to look at the ease of doing business across borders in the region and work towards regional trade agreements, customs improvements and border efficiencies, to name just a few," he added.

According to him, Nigeria's top trade export destinations are currently United States of America (29 per cent); India (12per cent); Brazil (8per cent); Spain (7per cent) and France (5per cent).

Randy explained that from a global perspective, the GCI 2012 indicates that today's volatile and uncertain business environment bears the lasting impact of the financial crisis.

According to him, "In this period of slow growth, it's important to remember the tremendous gains that globalisation has brought to the world and recognise it as an engine of economic progress. It is crucial that governments around the globe resist protectionist measures that hinder cross-border interactions."