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RenCap, stakeholders see huge investment opportunities in Nigeria

By BusinessNews Staff on May 19, 2015

Renaissance Capital, a leading emerging and frontier investment bank, and other stakeholders in the capital market have said the long-term potential of Nigeria and some other African countries is huge with great investment opportunities for investors.

The Chief Executive Officer, Renaissance Capital, IgorVayn, was among those who expressed this view on Monday at the company’s ‘6th Annual Pan-Africa 1:1 Investor Conference’, which was held in Lagos.

Addressing investors and other participants at the event, which is aimed at facilitating further investment in continent’s fast-growing markets by bringing together leading international investors and companies from across Africa, Vayn explained African markets had become more mature.

He said, “We are confident in the vast untapped development potential of African countries, fuelled by expanding economies and a growing consumer base.”

A professor of social and political economy, Pat Utomi, who delivered the keynote address at the conference, called on the incoming government of Muhammadu Buhari to move aggressively in the power and oil and gas sectors.

Utomi said, “I think we are going to see clearly that the government is going to move aggressively in those sectors, particularly because it realises that a lot depends on the availability of power. It is going to rationalise and encourage new thinking in some of the decisions that have been made.

“But in the main, it is going to work at not giving the impression that it is against what has been done before. It is going to try and ensure, in my view, continuity, but pressure the system to improve performance.”

Utomi also said that the policy thrust of the new government should involve making corruption very costly and unattractive.

He said, “I believe that the challenge of now will be a challenge of looking at conserving what we have and stimulating what we can access. That’s really the general theme that I see in those who are looking at how policy is going to be evolving in the coming weeks and months.”

According to him, it is important for the new leadership to promote a clear national strategy of what direction the country is travelling, try to block leakages, increase productivity of funds that are available, ensure that resources are more effectively deployed and diversify the base of the economy in the different sectors and geographically.

Also, commenting on investment and growth on the continent, the Global Economist, Renaissance Capital, Charles Robertson, said, “We see great long-term potential across Africa, particularly, in Nigeria, Kenya and Egypt.

“We believe Nigeria will be a trillion dollar economy by 2025 and it will keep doubling in size every 10 years. GDP per capita is likely to reach around $15,000 by 2050.

“Following the April elections, the new government represents the best opportunity in recent years to push forward reform for Africa’s largest economy.”

According to Renaisance Capital, over 150 investors representing both global and frontier funds and 50 companies from across Africa are participating in the conference.

The three-day conference is expected to host over 1,000 one-on-one meetings and dedicated sector site visits, including to Ghana.

Further commenting on the conference and operations of Renaissance Capital, Vayn said, “Since we first launched here in 2007, we have maintained our deep commitment to grow our presence on the ground. As markets have evolved and become more mature, we have broadened our offering in Africa.

“Going forward, we will continue to develop our business in the continent to support its economic growth and facilitate further investment in Africa’s fast-growing markets.”

Vayn explained that this year’s edition of the conference was being held at a “profoundly important moment” for the country.

He said, “The peaceful presidential election and transfer of power to Muhammadu Buhari are a testament to the success of the electoral process. The prospect of reforms by a new administration implies significant upside potential for Nigeria over the medium term.

“We think Nigeria is at the cusp of a recovery, and the low oil price combined with a change in the government provides the best investment opportunity in years.”

[Punch]

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