Over 150 investors representing both global and frontier funds and 50 companies from across the African continent participating at the 3-day Renaissance Capital 6th Annual Pan-Africa 1:1 Investor Conference in Lagos, have re-echoed the thrust the incoming Muhammedu Buhari, president-elect’s, government should build its core values.
While recognizing that the outgoing government led by President Goodluck Jonathan should be remembered for checkmating the country’s debt profile, resulting in some positive economic outlooks in the current oil sector downturn, however, issues revolving around making corruption costly and unattractive, and robust private sector complemented by entrepreneurial and goal-oriented public sector, have become paramount in the present day economy.
In a keynote address, Professor Pat Utomi, a professor of Economics, said that the immediate challenge the incoming government should tackle is conserve the nation’s economic potentials and stimulate them to enable greater productivity.
Essentially, Utomi said it is investors’ hope that the new government will reinvent the sector like the mining and build clusters of industries around it; strengthen institutions, property rights, enabling environments and promote national strategy.
Such national strategy, he continued, will imply blocking all revenue leakages, increase productivity of available funds and creating values for money.
To articulate such, the Professor said that professional accountants should be involved to minimize expenses; diversify the nation’s economic bases, sectorially and geopolitically.
“Yes, we expect the incoming government, to stimulating the existing economic potentials of the country by way of improving revenue collection, extend the tax net, stimulate economic growth that will produce future tax; i.e., that creates regional competitiveness.
“The incoming government also needs to adopt new core values where emphasis of policies should move towards the well-being of the average citizens rather than special interest groups. On power sector, let there be a refocus on how to distribute power, because Nigerians are in dire need of power. Engage the power of the private sector for development.
“It is our honest expectation that sectors like power, infrastructure, finance & banking, SMEs, culture, ICT will be improved upon for even availability of service to the citizenry,” he said.
Professor Utomi also predicted that there will be an economic resolution in favour of the manufacturing sector.
The event by Renaissance Capital, a leading emerging and frontier markets investment bank, helps facilitate further investment in continent’s fast-growing markets by bringing together leading international investors and companies from across Africa.
Igor Vayn, chief executive officer, Renaissance Capital, said, “We are confident in the vast untapped development potential of African countries, fuelled by expanding economies and a growing consumer base. Since we first launched herein 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”.
He added that going forward, Renaissance Capital will continue to develop its business in the continent to support the economic growth and facilitate further investment in Africa’s fast-growing markets.
According to Vayn, “This year, we bring the conference to Nigeria at a profoundly important moment for the country. 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.”
Renaissance Capital’s “Frontier and emerging markets: Reform awakens” report issued last week once again proves the increasing strength of African markets and highlights the breadth of opportunities the continent presents.
Charles Robertson, global chief economist at Renaissance Capital, noted thus, “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.”
The three-day conference will host over 1,000 one-on-one meetings and dedicated sector site visits, including to Ghana.
Founded in 1995, Renaissance Capital is a leading emerging and frontier markets investment bank with operations in Russia, Eastern Europe, the Middle East, Asia and Africa, and offices in major financial centres, such as London, New York and Dubai.
It has established market-leading positions in each of its core businesses – M&A, equity and debt capital markets, securities sales and trading, research and derivatives.
The Firm continues to build its practices in metals & mining, oil & gas and agriculture across its target markets. Renaissance Capital is part of ONEXIM Group.