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(DAILY MAIL) Zambia makes strides in risk performance

Zambia makes strides in risk performance
By NKOLE CHITALA

ZAMBIA has climbed by 15 places in the latest edition of Euromoney’s country risk (ECR) survey to 97th position in the global rankings, ahead of Angola and Mozambique.
The country has become part of the big winners in the ECR tables in the third quarter of this year. According to ECR third quarter results for September, economists ranked Zambia 97 in the world across a range of political, economic and structural risk criteria.

The economists say Zambia saw improved scores in access to capital section of the survey and moved up in the ranking by 10 places while the country’s political risk score is now higher than the average score for Central Asia.

Economists who saw substantial re-ratings, say Zambia went up 15 places, Cameroon up five and Angola (up three).

Other countries such as Tanzania climbed by nine places, to 92 in the global rankings while Malawi was at 111 in the world across a range of political, economic and structural risk criteria.

They said sub-Saharan African countries risk scores improved by an average of two points between June and September 2011.

“Most countries are buoyed by high prices for the commodities and strong domestic demand from an urbanising population,” they said.

The economist said favourable, assessments of African countries risk were supported by the rise in the access to capital markets component of the survey, indicating that many banks are prepared to look favourably at the continent.

ECR evaluates the investment risks of a country across 15 criteria such as risk of default on a bond, risk of losing direct investment and risk to global business relations, by polling noted international economists.

This qualitative score is averaged and combined with three basic quantitative values to give a score on a 100-point scale, where 100 is safest and zero is most risky.
Over 250 economists participate in the survey, assigning a score to 186 countries globally.

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posted by MrK @ 3:44 PM