28 January 2015 Investing in Lekki Free Zone

Transcript:28 January 2015 Investing in Lekki Free Zone:
28 January 2015 Investing in Lekki Free Zone Taking a Stake in Africa’s Biggest Economy Investing in Lekki Free Zone Nigeria’s Place in the African Growth Story Africa’s diversity Over 1 billion people (500+ ethnic groups. 2,000+ languages, 54 countries) Rich in natural resources with: 10% of world’s oil reserves 40% of gold 80% - 90% of chromium and platinum group metals 60% of world’s uncultivated arable land (600 million hectares) Emergence of large African companies 20 African companies with revenues > $3bn Over 100 African companies with revenues > $1bn Africa’s growth story From “...the hopeless continent” (Economist, 2000) to the “African Growth Miracle” (AfDB Report, 2010) Robust, broad-based economic growth Mineral resource wealth Population growth Economic and political reform Urbanisation Increasing disposable incomes and growth of a middle class Infrastructure needs Positive average growth rates for the first time in decades Over 6% per annum in some of the fastest growing economies by 2010 Real consumption in Africa has been growing between 3.4% and 3.7% per annum (2012) Africa’s growth story Source: IMF, 2013 Africa’s growth story Growth in SSA ~ 4.9% in 2013 (and 2012) Underpinned by improved agriculture production and investment in natural resources and infrastructure Angola, Nigeria, Ethiopia, and Rwanda are among the fastest growing economies in the world Not one economy or homogenous population block Among the less-integrated commodity exporters, Zambia’s currency benefited from strong copper export revenues and investor interest in its debut $750m sovereign bond in Sep 2013 Nigeria’s growth has been strong due to high international oil prices (up until late 2014) –benefiting NGN – despite security problems in the north and alleged large-scale oil mispractices in H1 2013 South Africa’s growth continued to decelerate, constrained by tense industrial relations in mining, tight power supply, anemic private investment, and weak consumer and investor confidence Nigeria’s target: top 20 economies in the world by 2020 (Vision 20: 2020) – primary objectives to: Create an enabling environment for green and inclusive economic growth Diversify Nigerian economy Create employment opportunities; and Reduce poverty Investing in Lekki Free Zone Nigeria: The Economic Giant of Africa Where are the Opportunities? Nigeria: Opportunities in Africa’s largest economy Political Context Democracy in Nigeria – a work in progress Mobilisation along ethnic and religious lines pose significant challenges Challenges posed by civic unrest and insurgencies Economic Developments Population of approximately 170 million with a land area of 923,768 km2