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
The Federal Capital Territory Administration (FCTA) and other stakeholders have charted path to improved organic agriculture practices nationwide.
At a 2024 national organic and agroecology business summit held recently in Abuja, stakeholders took turn to speak on the additional areas of promoting the practices.
The Mandate Secretary, FCT Agriculture and Rural Development Secretariat (ARDS), Lawan Geidam, advocated for sustainable practice to develop resilient food systems that will benefit people.
The event, with the theme,”Towards Policies for Upscaling Organic Agroecological Businesses in Nigeria”, is aimed at fostering growth in the organic agriculture sector.
Geidam, who was represented by the Acting Director, Agric Services, in the Secretariat, Mr. Ofili Bennett, emphasised the success of organic and agroecological farming, reling on the active involvement of farmers, businesses and consumers.
He reassured attendees that the FCT Administration, led by the Minister, Nyesom Wike, and Minister of State, Dr. Mariya Mahmoud, remains dedicated to supporting initiatives that enhance the livelihood of residents.
Geidam described the partnership between the Secretariat and the organic and Agroecology initiative for a monthly exhibition and sale of organic products in the FCTA premises as a testament to this commitment.
“The ARDS remains committed to driving policies and initiatives that align with national goals and global standards”, Geidam said.
On her part, the Chairperson of Organic and Agroecology Initiative, Mrs. Janet Igho, urged residents to embrace healthy eating habits to sustain a good lifestyle. She stressed the importance of adopting organic practices, highlighting the benefits of going organic, growing organic and consuming organic products.
Igho expressed her optimism regarding the Agricultural Revival Programmes as articulated in President Bola Ahmed Tinubu’s “Renewed Hope Agenda”, which aims at fostering food and nutrition security.
She also extended her gratitude to ARDS for graciously allocating a space in the FCTA premises for the exhibition and sale of organic products, noting that the platform has been effectively used to advance the promotion of organic agriculture in FCT.
Igho outlined several benefits of organic agriculture which includes improved soil health, increased biodiversity, availability nutritious and healthy food and a reduced carbon footprint.
Stakeholders at the summit, underscored the critical need for enhanced private sector involvement and robust capacity building initiatives for farmers.
They highlighted the importance of implementing supportive policies to foster the growth of the organic agriculture sector.
In the light of the significant challenges facing Nigeria’s agricultural landscape, stakeholders decided that organic agricultural practices present sustainable solutions and a pathway for a more resilient and productive farming systems.
The three-day summit featured exhibitions showcasing organic foods, fruits, vegetables and fertilizers, providing an opportunity for residents to better appreciate the benefits of production and consumption of organic agricultural products.
