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HEY PRESTO: as if by magic, Nigeria has declared itself the biggest economy in Africa. Overnight, with the wave of a statistical wand, it has added 89% to its GDP, now worth $510 billion, and soared past the previous leader, South Africa, worth $370 billion. Nothing has changed in Nigeriaâs real economy, except the way it is measured. Yet the magic matters. The GDP revision is not mere trickery.
Nation's well-regulated financial services and banking sectors are a magnet for foreign investors that need a springboard into the rest of Africa. The finance, real estate and businesses services sector is South Africaâs biggest, comprising 21.1% of the country's gross domestic product (GDP). Manufacturing (15.4%) is the second-biggest sector. The South African banking and financial services sector is highly regarded internationally because of a strong regulatory and legal framework. A small number of firms handle most of the countryâs biggest auditing accounts.