Business
‘Africa, Most Attractive Destination For Investors’
More than one in two institutional investors see Africa as the most attractive region to invest in the next decade, with one in three expecting to put at least 5 percent of their portfolios into the continent by 2016, a survey showed yesterday. Some 158 institutions including pension funds, hedge funds and private banks polled by the Economist Intelligence Unit (EIU) said Nigeria and Kenya are likely to bring the best investment returns within Africa over the next three years, followed by Zimbabwe, Egypt and Ghana.
Currently, almost half of respondents have either no exposure or less than a one percent allocation to Africa, where an emerging middle class and growing consumerism are seen offering the most attractive investment opportunities. “Africa was exclusively seen as a commodity play but now there are real economic growth drivers,” said Mohammed Al Hashemi, chief executive officer of Abu Dhabi government-owned Invest AD Asset Management, which commissioned the report. “Africa was a destination for grants and aid but going forward it will be the destination for trade and investment.”
Private equity and infrastructure are expected to outpace commodities as the best asset classes for investment in Africa in the next three years. Forty-six percent of the investors said energy and natural resources offer the best investment return over the next three years, followed by agriculture and agribusiness, construction and real estate and financial services. The most favoured investment vehicle is multi-asset class funds, but respondents thought equity funds will give the most opportunity in the next three years.
Investors consider bribery and corruption as the main challenges of investing in Africa, as well as weak legal and governmental institutions. A third of respondents also cited political risk. Al Hashemi said while instability in countries such as Nigeria, where the Islamist sect Boko Haram has killed hundreds of people in the past year, was an important factor in making investment decisions, he also looked at the fundamentals. “We will keep an eye on politics and the changes there because they will have implications for economic policy,” he said.
“(But) the foundations that make us put our money there are still consistent.” Invest AD, which targets Middle East and Africa investment, already has funds focusing on Iraq and Libya. Its Iraq Opportunity Fund returned around 20 percent in 2011, before the withdrawal of U.S. troops in December raised fears of renewed sectarian violence and weighed on local stocks. “For much of 2011, Iraq was one of the best performing stock markets in the world. We’ve seen the market take a breather.
We think there will be a resumption of the good performance in the Iraqi market. It was inevitable when U.S. troops left that people would sit on the sidelines,” Al Hashemi said. “Iraq has been put on a very firm path of progression and development…When we talk to our contacts and investors they’re keen to add to their exposure to Iraq.” Invest AD also hopes to reinitiate its Libya Opportunity Fund, which was suspended in February after a launch in December 2010 due to the stock market closure. “Libya is in dire need of upgrading infrastructure. The country is wealthy and has potential to be very wealthy. They are self-sufficient in funding a great deal of projects and we have now a great political will to implement these projects,” Al Hashemi said
Business
USTR Criticises Nigeria’s Import Ban On Agriculture, Others
The United States Trade Representative (USTR) has criticised Nigeria’s import ban on 25 categories of goods, claiming that the restrictions limit market access for American exporters.
This is the effect of President Donald Trump’s tariffs introduction on goods entering the United States, with Nigeria facing a 14 per cent duty.
The USTR highlighted the impact of Nigeria’s import ban on various sectors, particularly agriculture, pharmaceuticals, beverages, and consumer goods.
The restrictions affect items such as beef, pork, poultry, fruit juices, medicaments, and alcoholic beverages, which the United States sees as significant barriers to trade.
The agency argues that these limitations reduce export opportunities for United States businesses and lead to lost revenue.
“Nigeria’s import ban on 25 different product categories impacts United States exporters, particularly in agriculture, pharmaceuticals, beverages, and consumer goods.
“Restrictions on items like beef, pork, poultry, fruit juices, medicaments, and spirits limit United States market access and reduce export opportunities.
“These policies create significant trade barriers that lead to lost revenue for United States businesses looking to expand in the Nigerian market”, the agency said .
In 2016, Nigeria implemented the ban on these 25 items as part of efforts to control imports and stimulate local production.
Some of the banned items include poultry, pork, refined vegetable oil, sugar, cocoa products, spaghetti, beer, and certain medicines.
On March 26, 2025, the Federal Government also announced plans to halt solar panel imports to encourage local manufacturing as part of its push for clean energy.
Business
Expert Seeks Cooperative-Driven Investments In Agriculture
A leading agribusiness strategist and digital agriculture expert, Ayo Oluwa Okediji, has sought cooperative-driven investments in sustaining growth of poultry industry in Nigeria.
He said the poultry industry was at a defining moment and requires urgent structural reforms to secure its future and ensure long-term sustainability.
Speaking on the theme, “Strengthening Poultry Farming Through Cooperative Synergy and Strategic Investments”, at the recently concluded Oyo Mega Poultry Workshop 2025 in Ibadan, Okediji called on poultry farmers, cooperative leaders, financial institutions and policy makers to rethink the existing structure of the poultry sector.
He stressed the need to transition from fragmented, individually-driven operations to well-structured, cooperative-led enterprises capable of attracting sustainable financing and securing long-term viability.
He said, “Our poultry sector cannot thrive on individual effort alone. We need to organise ourselves into cooperative clusters, build strong governance systems and position ourselves to attract the level of investment needed to sustain this industry beyond this generation.”
Drawing on lessons from successful global cooperative models such as Rabobank in the Netherlands and Landus Cooperative in the United States, Okediji introduced the FarmClusters Poultry Model, a locally adapted solution developed by Agribusiness Dynamics Technology Limited (AgDyna), a subsidiary of AgroInfoTech Africa.
According to him, the model is currently being piloted in Oyo State in partnership with PANOY Agribusiness Limited and local poultry cooperatives.
Business
NACCIMA Proposes Hybrid Oil Palm Seedlings For Farmers
The Rivers State Representative of the Nigeria Chambers of Commerce, Mines, Industries and Agriculture (NACCIMA), Mr. Erasmus Chukwundah, has urged palm oil farmers to consider hybrid seedlings for planting, if they must break even in palm oil business.
Chukwundah said this recently at the Free Oil Palm Business Climate Smart Best Management Practice/Assistance Training organized by Partnership Initiative In Niger Delta (PIND) for Palm Oil Farmers in Elele, Ikwerre Local Government Area.
The Rivers representative said until palm oil farmers begin to consider such hybrid oil palm seedlings, they may not meet up with the daily increasing demand of palm oil in the market.
According to him, the seedlings produce up to 30 bunches at once that ripen same time.
He said PIND decided to partner with Oil Palm Growers Association of Nigeria (OPGAN) to ensure that the message was received by the targeted audience.
According to him, palm oil remained a popular choice of industry operators as it could be converted to many other products such as vegetable cooking oil.
He also noted that products such as motor tyers, marine ropes and others are now gotten from the palm tree.
Chukwundah, who is the immediate past Director-General of Port Harcourt Chamber of Commerce, Mines, Industries, and Agriculture (PHCCIMA), further warned against use of unrecommended fertilisers in growing oil palms.
He noted that such practices could limit its export value or chances as the foreign marketers have a way of detecting such .
He reiterated the need for organic fertilizers, including poultry droppings, to enable them have a natural palm oil.
“People must reduce physical contact with palm oil production. That is why we are campaigning for hydrolic oil mills. The foreign markets are no longer interested in crude method of palm oil production”, he said.
Meanwhile, one of the farmers, Sonny Didia, who appreciated Chukwundah’s commitment towards the concern of farmers, appealed for an urgent need for loan opportunity with low interest rate in order to enable them beat the target.
King Onunwor
-
News4 days ago
Council Boss Sues For Love, Unity
-
Editorial1 hour ago
Reforming Nigeria’s Prison Crises
-
Politics9 mins ago
Leave PDP, Bode George Tells Atiku, Wike
-
News4 days ago
IBAS, FAMILY CELEBRATE EASTER AT GOVERNMENT HOUSE CHAPEL
-
Politics4 days ago
Ekiti YPP Felicitates Christian Faithful At Easter
-
News48 mins ago
Nigeria Safe For Investment, Edun Assures Investors
-
News4 days ago
US Supreme Court stops Trump from deporting migrants
-
Maritime4 days ago
Enugu Plans Intra Rail System To Boost Trade