THE economic growth of Nigeria and some other African countries may outpace Asia’s in the coming decades, with trade turnover reaching nearly $400 billion (N62 trillion) by 2015.

The Chief Executive Officer of Renaissance Capital, Stephen Jennings, who said in a speech he delivered at the second yearly Pan-Africa Investor Conference in Lagos recently, assured that the African continent could have a surplus trade of about $40 billion in four years.

“Just compare the performance of two oil-dependent and supposedly hopelessly managed emerging markets, which suffered a 7.5 per cent economic collapse and Nigeria, which achieved a stunning seven per cent growth rate.

“Today, Africa’s economic success, and the success right here in Nigeria, is widely understood amongst global investors. In fact, within the next couple of years, I expect that it will become conventional wisdom that Africa is one of the most attractive investment destinations globally,” he noted.

Jennings stressed out that Africa’s macroeconomic performance has improved very significantly. “Between the 1990s and the 2000s inflation has fallen 64 per cent, government debt by 28 per cent and fiscal deficits by 60 per cent.

He expressed optimism about infrastructure development in Africa, “with the tremendous scope for greater private ownership and private public partnerships in both funding and operating large-scale core infrastructure projects. In many cases, the required reforms are not complex”.

For instance, he pointed out that, “Nigeria’s notorious power shortages actually represent a massive commercial opportunity which the forthcoming privatisation of generating capacity will hopefully address.

Jennings specifically identified Nigeria as good business destination in Africa.

He said: “Nigeria arguably has incredible attributes for emerging market investment banking and consumer finance. It is very big, fast growing and uncompetitive. It will have deep pools of domestic liquidity and the barriers to international players are high. Sounds like – well Brazil and Russia not so long ago, probably the two best emerging markets in the world for domestic investment banks.

“Nigeria is home to one out of every five Africans. Its population of 155 million is largely youthful and increasingly urbanising, which presents significant opportunities in the consumer goods, real estate, construction and services industries.

“Nigeria’s strong import demand, with China as its biggest supplier, attests to the appetite for consumer goods in this import-dependent economy. More significantly, it demonstrates the opportunity for the manufacturing of fast-moving consumer goods to supply the large local market, which will be taken up as power infrastructure improves.

“Rural-urban migration is swelling populations of Nigeria’s urban areas. Moreover, strong economic growth is creating jobs and supporting the emergence of a middle class with higher disposable income, which is demanding better housing. On the back of this, Nigeria’s small mortgage is growing, which is positive for the financial services sector. The construction industry will benefit from this growing demand for real estate, and is expected to get further support from infrastructure development.”

-Guardian

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