Rating

Rating System

Looking for business partners or investment opportunities often involves a certain level of entrepreneurial risk. This risk can be minimised by providing credible, independent, accurate, rated and timely information. Our company rating system consists of rating indices on an individual and organisational basis. Security, traceability, credibility, reputation and marketability are just a few of the factors rated by our staff on-site.

AfricanBIB provides a rating and screening system for both country and company information. We have developed the AfricanBIB Location Index combining many different available ratings considering political stability, corruption, human rights, freedom, democracy, innovation and business conditions. This rating will be combined with an on-site country rating and results in our African BIB 365° Rating. We ask African people on a regular basis about their point of view concerning political, economic, social, technological, environmental and legal aspects in their country. The result is a rating examining the point of view of organisations outside Africa and of people living in and experiencing Africa from the inside. Thus the rating gives you a 365° view and helps to decide where to invest.

For more information on the composition of our ABIB Location Index see below.

 

Composition of ABIB Country Ratings:

 

World Governance Indicators

The World Governance Indicators are an index composed by the World Bank. It consists of six different sub-indicators in consideration of different countries’ governance in the period from 1996 to 2010. The indicators are:

  • Voice and Accountability ( the extent people in the country are able to elect their government, freedom of expression, freedom of association and free media)
  • Political stability and absence of violence: (stability of a country’s government and whether violence and terrorism are part of government’s execution)
  • Government effectiveness (quality of public services, civil service, policy formulation and implementation, government’s independence from political pressures and credibility)
  • Regulatory quality (government’s capability to express and implement policies which support private sector development)
  • Rule of Law (the extent of confidence people have in the rules of society in consideration of quality of contract enforcement, property rights, police and courts)
  • Control of corruption (extent of corruption within the country by public as well as private people to achieve private gain)

Source: info.worldbank.org/governance/wgi/sc_country.asp

 

 

Corruption Perception Index

The Corruption Perception Index from Transparency International evaluates corruption of the public sector. Business opinion surveys were undertaken by independent institutions to assess the corruption of each country. Issues which were taken into consideration are the extent of corruption with which public officials work, kickbacks in public procurement, and misuse of public funds. Additionally Transparency International evaluated the efforts done to minimise corruption within the public sector.

Source: www.transparency.org/policy_research/surveys_indices/cpi

 

Freedom House Index

The Freedom House Index is divided into two sub-indices called Freedom of the World and Freedom of the Press. Political rights and civil liberties are scored within the Freedom in the World Index.

The Index Freedom of the press consists of the sub-indicators legal environment, political environment and economic environment. It evaluates the government’s measures and techniques used to develop press freedom within its country including safety of journalists and state’s influence on media.

Source: www.freedomhouse.org/template.cfm

 

Bertelsmann Transformation Index

The Bertelsmann Transformation Index measures country’s stage of development and quality of management for political agents and international publicity. Development processes, including their stage of democracy and social market economy, are evaluated in 128 different countries. The Bertelsmann Transformation Index is divided into State-Index [“Status-Index”] which includes political and economic transformation and Management-Index.

Source: www.bertelsmann-transformation-index.de

 

IDA Resource Allocation Index (IRAI)

The World Bank compiled this Index derived from the results of the annual CPIA (Country Policy and Institutional Assessment). The IRAI assesses the extent of country’s growth and poverty reduction by evaluating economic management, structural policies, policies for social inclusion/equity, public sector management and institutions.

Source: web.worldbank.org/WBSITE/EXTERNAL/EXTABOUTUS/IDA/0,,contentMDK:21359477~menuPK:2626968~pagePK:51236175~piPK:437394~theSitePK:73154,00.html

 

Economic Intelligence Unit

The Economic Intelligence Unit’s democracy Index evaluates the country’s stage of democracy in December 2011. The ranking was done for 165 states and two territories. Categories which the Democracy Index includes are:

  • Electoral process and pluralism
  • Civil liberties
  • The functioning of government
  • Political participation, and
  • Political culture

Source: www.eiu.com

 

Global Competitive Report

The Global Competitive Report assesses the sustainability of competitiveness of both emerging and industrial countries. Indicators like unemployment, recessions and growth and innovations are benchmarked. The factors considered are:

  • Innovation and sophistication factor
  • Efficiency enhancer

Source: www.weforum.org/issues/global-competitiveness

 

Enterprise Survey

The World Bank calculated different percentage rates using firm-level surveys in the private sector. With the help of these results people can measure the extent of corruption within the country’s private sector. The results include:

  • Percentage of Firms Expected to Pay Informal Payment to Public Officials (to Get Things Done)
  • Percentage of Firms Expected to Give Gifts to Get an Operating License
  • Percentage of Firms Expected to Give Gifts to Secure a Government Contract
  • Percentage of Firms Identifying Corruption as a Major Constraint
  • Percentage of Firms Expected to Give Gifts In Meetings With Tax Officials

Source: www.enterprisesurveys.org/Data/ExploreTopics/corruption

 

Ease of doing business

This ranking, compiled by the World Bank, measures different indicators including time needed to start a business, dealing with construction permits, registering property, getting credit, protecting investors, paying taxes, trading across borders and enforcing contracts on a business level.

Source: www.doingbusiness.org/rankings

 

Mo Ibrahim Governance Index

The Mo Ibrahim Governance Index evaluates the governance of each African country. The index consists of 86 sub-indicators. African Business Information Bank took the following indicators into consideration:

  • Safety and Security
  • Rule of Law, Transparency and Corruption
  • Participation and Human Rights
  • Sustainable Economic Development
  • Human Development

Source: www.moibrahimfoundation.org/en/section/the-ibrahim-index

 

Human Development Index

The Human Development Index is commissioned by the Unitd Nations Development Programme. Indicators concerning health (Life expectancy), education (mean years of schooling, expected years of schooling) and living standards (gross natonal income per capita) are evaluated.

Source: http://hdr.undp.org/en/statistics/hdi/

 

Environmental Performance Index

The Environmental Performance Index measures indicators concerning the environmental performance of a country, its environmental policies etc. The Afrian Business Information Bank considers the following rankings:

  • Environmental Performance Index
  • Air pollution
  • Climate Change
  • Renewable Electricity

source: http://epi.yale.edu/

 

Foreign Direct Investment:

The World Bank ranks the countries within the world in consideration of Foreign Direct Investments made in the respective country.

source: http://data.worldbank.org/indicator/BX.KLT.DINV.CD.WD