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
MoniePoint Inc. a digital financial firm in Nigeria, has said it is empowering community pharmacists across the country with innovative payment solutions to improve access to drugs.
The financial firm said it had also provided loans for pharmacists under the aegis of the Association of Community Pharmacists of Nigeria (ACPN) to drive healthcare delivery in the country.
MoniePoint in a release titled, “Inside Nigeria’s community pharmacies: How Moniepoint drives healthcare access with payments and funding”, has reaffirmed its commitment to providing digital payment solutions to improve health outcomes in Nigeria.
The release examined how community pharmacies play a crucial role as vital access points for medical care in Nigeria, especially in areas with limited hospital or clinic access.
According to the release, the ACPN National Chairman, Ambrose Igwekwam, highlighted the critical role played by community pharmacies in Nigeria’s healthcare system over the years.
Igwekwam, however, expressed concerns over the challenges confronting the nation’s pharmaceutical industry which he said was hindering access to affordable medicines.
The pharmacist listed poor infrastructural systems, power, transportation, regulatory bottlenecks, importation dependency, and limited research opportunities as major challenges facing the pharmaceutical sector.
He also stressed the need for robust collaborative efforts with institutions like Moniepoint to strengthen the sector.
“As Nigeria continues to grow, improving local pharma manufacturing to meet the demands of this growth presents a key opportunity for us all.
“There is also the African Continental Free Trade Area Agreement, which is expected to boost our industry, especially when we start producing our drugs locally, which will provide the much needed foreign exchange from exports.
“We are also seeing advancements in digital health and technology which would hopefully deepen the practice of e-prescription in Nigeria”, the ACPN boss said.
Corlins Walter
In order to enhance customer service and streamline operations, the Chartered Insurance Institute of Nigeria (CIIN) has called on stakeholders in the insurance industry to embrace Artificial Intelligence (AI).
The President of the institute, Yetunde Ilori, made this call at the 2024 Office Representatives Committee (ORC) Workshop, organised by the institute, with the theme “AI and the Future of the Insurance Industry”, in Lagos.
Ilori at the event, emphasised the importance of AI adoption, noting that it was not a threat to jobs but rather a tool to improve efficiency across the insurance sector.
“It is not about AI taking over our jobs, but about us using AI to simplify processes and give maximum satisfaction to all the customers we serve whether as underwriters, brokers, loss adjusters, or in educating our members”, she said.
The workshop, which brought players in the insurance sector together, aimed to address how AI could be leveraged to transform business processes and improve customer interactions.
The Chairman of the ORC, Monica Nwachukwu, underscored the role of AI in modernising the industry, adding, “AI can automate customer and claims processes, allowing insurers to provide faster and more efficient services to their customers”.
She explained how AI could help extract data from legacy systems, enhancing decision-making processes.
“By integrating AI with APIs, insurers can feed valuable data into AI solutions to improve operations and customer service”, she added.
In his address, the Managing Partner of A4S and Training Heights, Orlando Odejide, stressed the need for companies to align their strategies with future technologies like AI, especially as they prepare for 2025.
“Any organisation that wants to grow into the future must have its strategic plan in place. If your strategy for 2025 is not ready, it should be done by October”, he advised.
He encouraged participants to think critically about how AI could be integrated into their business models to ensure they remain competitive.
“The idea is for you to use this workshop as a platform to think about your organization and how AI can help streamline your processes and improve growth”, Odejide noted.
In order to gain global respect and recognition, the National Space Research and Development Agency (NASRDA) has reaffirmed its determination to pursue its goal in ensuring that Nigeria’s space capabilities are recognised on the world stage.
The agency also reaffirmed its commitment to positioning Nigeria as a key player in the global space economy.
In a statement by the Director of Media and Corporate Communications, Dr. Felix Ale, NASRDA revealed that the Director-General of the agency, Matthew Adepoju, emphasised this during recent engagements at the 79th United Nations General Assembly and the Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) and Global Alliance Business Association international conference in Michigan, United States.
The statement noted that Adepoju outlined a forward-thinking agenda, stressing the importance of Nigeria’s space programme as a leader in research, exploration, and technological innovation.
“Our goal is to ensure that Nigeria’s space capabilities are recognised on the world stage.
“We must foster collaborations with global space agencies to enhance our satellite capabilities and technological infrastructure”, he stated.
The NASRDA boss said the agency is focusing on enhancing satellite capabilities, expanding international collaborations, and leveraging space science for national development.
He said NASRDA will have no stone unturned in pursuit of excellence, ensuring the agency secures the necessary resources and recognition to propel it forward.
“The relationships we build today will pave the way for tomorrow’s advancements in space science.
“Innovation and progress thrive in an environment built on collaboration and inclusivity”, he stated.
He emphasised that with the support of the government, international partners, and a dedicated team, NASRDA is poised to make significant strides in the evolving global space landscape.
“We are on the brink of a new era for Nigeria’s space agency. Together, we will ensure our nation stands out in the global space economy”, he said.
Corlins Walter