How are the economies of South Africa and Nigeria different from each other?
Answers
Answer:
The battle over which one is the largest economy in Africa has been raging for a number of years now. South Africa had for a long time sat at the helm until the year 2014 when Nigeria came out of nowhere and took the crown. Ever since that time, it has been a raging battle with the two giants.
The two countries have been in recession for a significant part of this year. They both only managed to come out of it in the second quarter of 2017. According to experts, determining which one of the two will emerge as the winner will to a great extent on the exchange rate that will be used in the calculations.
According to the International Monetary Fund which uses an approximate official rate of N304 for every US dollar, Nigeria will emerge victorious. Using this figure places the country’s GDP at $395 billion. However, basing the calculations on the Naira’s market price which is about 20% weaker than the official price, the GDP value goes down remarkably. This would place Nigeria behind South Africa which is currently rated at $344 billion.
We would like to take a closer look at these two economies in order to establish the true market leader. In this article, we will compare and contrast South Africa and Nigeria in depth and establish their relative positions on the list of Africa’s top economies.
Important Comparison Points for the Two Economies
A proper assessment of two diverse economies requires that we establish measurable points of comparison between them. This is the only way to ensure that the results are objective and reliable. The economies of these two major players have quite a number of similarities and distinctions. Let us take a look at some of these comparison points:
Answer:
One major difference between South Africa and Nigeria is the nature of their economies. South Africa is characterized by a highly diversified economic base. ... This is in most ways a huge contrast to the Nigerian economy. It has in the recent past been bedeviled by remarkably low market prices.