It was a big win for Nigeria at the UK-Africa Investment Summit in London as the largest economy in Africa secured five partnerships with the British government aimed at delivering more investment, jobs and growth.
The deals bagged by Nigeria put the most populous nation in Africa ahead of South Africa, the most industrialised country in the continent, as it grabbed three partnerships with the British government.
“For my country, greater UK engagement in its economy would bring jobs to under-tapped sectors, such as agriculture and manufacturing,” President Muhammadu Buhari said in the UK.
The UK government, which set out the ambition to increase trade and investment links with Africa, said the partnerships meant building a stronger, long-term relationship with African countries – based on trade, investment, shared values and mutual interest. The UK wants to be the investment partner of choice for Africa and will continue to support African countries in their ambition to transform their economies.
Hosted by the UK Prime Minister Boris Johnson, the UK-Africa Investment Summit, which was graced by over one thousand people, including Heads of State and Ministers from African the continent, CEOs and senior representatives from African and British businesses, institutional investors, international and organisations is offering Nigeria an opportunity to spur inclusive growth through the following measures:
Economy
With £750 million in aid already channelled in agriculture businesses investment programmes, the UK said it is committed to supporting African countries in transforming their economies particularly in growth sectors that can create quality jobs at scale.
Summit pre-events in agriculture and manufacturing, attended by senior UK and African business leaders, demonstrated the huge breadth of opportunities in these sectors and the growing need for investment, the UK stated.
The British government also noted that it sees huge opportunities: in the ‘fourth industrial revolution’ underway in Africa as new technologies like AI, 3D-printing and drones are deployed; in Africa’s rapidly growing cities; and through unleashing the potential of women and girls to drive economic transformation.
On that note, the UK entered a partnership with Kenya, Nigeria and South Africa (£45 million of funding) for a new Digital Access Programme aimed at increasing connectivity and digital skills of marginalised communities build cybersecurity capacity and establish Tech Hubs to grow the local digital economy, and empower start-ups with the skills needed to expand globally.
Infrastructure
The summit launched a suite of initiatives to facilitate infrastructure financing in Africa and as expected, Nigeria with one of widest infrastructure gaps in the continent got the attention of the UK. It said that it launch new facility in Nigeria that will draw on UK expertise to help improve the provision and management of government infrastructure (funding of £80m).
Nigeria needs to spend $3 trillion and five percent of its GDP annually to bridge the infrastructure gap, according to the National Infrastructure Master Plan. From roads to bridges, down to power and railways, the country’s infrastructure has recorded significant depletion in the last 20 years, owing to poor maintenance culture, lack of sufficient funds and corruption.
“What investors are talking about here at the UK-Africa summit is infrastructure challenges; energy, roads and less bureaucracy,” Ngozi Okonjo-Iweala, former minister of finance told BusinessDay.
For a country like Nigeria to bridge its infrastructure deficit, some industry experts have said it requires borrowing to meet the desired revenue generation that can propel accelerated development.
Nigeria’s total public debt, comprising the debts of the federal government, 36 States and the Federal Capital Territory (FCT) as at September 2019 stood at N26.215 trillion.
The Debt Management Office (DMO) said recently that the country will borrow N1.549 trillion from domestic and international markets to fund its 2020 budget.
To manage its rising debt profile, economists have recommended that Africa’s largest economy should handle its huge infrastructure deficit through private and public sector investments.
Agencies
Also at the Summit, the UK said it was committed to increase its work to support the growth of African nations. The UK said it will therefore deliver new partnerships with Investment Promotion Agencies in Nigeria and South Africa (funding of £25mn).
“There are challenges in doing business in Nigeria, we know, but the opportunities exist because of the challenges,” Yewande Sadiku, Executive Secretary/CEO of Nigeria’s foremost investment promotion, told BusinessDay on the side-lines of the Summit.
According to her, a number of investors approached Nigeria for enquiries at the summit.
Fintech
With 112 African companies listed on the London Stock Exchange, with a combined worth of more than £125 billion, the UK said there are a growing number of opportunities for investors to participate in local currency issuances, which have the benefit of protecting borrowers from damaging exchange rate risk.
“At the same time, there is an emerging opportunity for African countries to benefit from the growing appetite of investors in the UK for investments that deliver a social or environmental return,” it said.
Research shows that a majority of people in the UK want to see their savings make a positive impact on people and planet alongside a financial return. The UK Government, together with businesses from around the world, used the summit to launch new initiatives and collaborations that will strengthen Africa’s partnership with the City of London and the wider UK financial sector.
The UK said it will be sharing its expertise through new regulatory partnerships, including to support Mauritius deliver the Africa Fintech Festival, the Bank of England to partner with Morocco’s Bank Al-Maghrib, and setting up a Nigeria Regulatory Sandbox to support Fintech firms to develop.
Clean energy
As a result of the UK-Africa Investment Summit, the UK said it would support the Energy Commission of Nigeria to update its 2050 Calculator, an energy and emissions model that supports sustainable development planning (funding of £60,000).
Meanwhile, the UK and Nigeria investors have at the just concluded UK-Africa Summit signed commercial deals worth £324 million (over N153.4bn) and the new UK government assistance to grow the UK-Nigeria trade and investment partnership.
Nigeria and the UK will be partners in a range of initiatives announced during the Summit including: Significant UK commitments to support Nigeria develop an enabling environment to turbo-charge economic growth, including helping address land issues for investment; strengthening and improving the finance sector; helping entrepreneurs secure access to finance; preparing the ground for the launch in the UK of naira-denominated bonds – “Jollof Bonds”; and developing the tech sector.
Others are substantial initiatives to accelerate the clean energy transformation in Nigeria, through enhanced technical and financial support; and strong commitments to harness private-sector support for social development, particularly supporting women and young people in business.
British High Commissioner Catriona Laing, who attended the Summit, said:
“Nigeria was out in force at the inaugural UK-Africa Investment Summit. President Buhari led the delegation and Nigerian businesses were well represented, ranging from world renowned figures, such as Tony Elumelu, through to female entrepreneurs running start ups.
Nigeria has already secured billions of naira worth of deals from the Summit. With the launch of an exciting range of initiatives to help investors identify opportunities in Nigeria, I am confident much more will follow,” the High Commissioner said.
“I am proud the Summit had a strong focus on supporting female participation in the economy. In Africa, women are more likely to become entrepreneurs than men and, with a fast-growing population Nigeria needs to harness the dynamism of its women to ensure prosperity for all its people,” the British diplomat added.
The Head of the Department for International Development in Nigeria, Chris Pycroft, who also attended the Summit, said:
“The private sector has a critical role to play in supporting Nigeria’s economic growth and in creating the jobs that Nigeria’s young and growing population needs. The UK-Africa Investment Summit was an excellent opportunity for Nigeria to show off the wealth of opportunities it offers businesses, from agriculture to mining to tech.
“I am delighted we are able to use our aid programme in Nigeria to support this agenda – from small steps like helping the Nigeria Investment Promotion Commission produce an investment guide through to the serious investment we are making in strengthening Nigeria’s agriculture and finance sectors.
“As well as stimulating the economy and creating the jobs needed to lift millions of Nigerians out of poverty, this package of partnerships will deliver a range of wider social benefits, from improving energy access on to extending access to banking and loans to the poorest consumers and female entrepreneurs.”
Twenty-one African countries met in London yesterday for the inaugural UK-Africa Investment Summit, which included African leaders, UK and African businesses, international institutions and young entrepreneurs.
At the Summit the British Prime Minister committed to building long-term, sustainable relationships in Africa underpinned by the UK’s values and high standards. Muhammadu Buhari led the Nigerian Delegation and held private meetings with Prime Minister Boris Johnson and His Royal Highness the Prince of Wales.
The Summit was designed to create new, lasting partnerships that deliver more investment, jobs and growth, benefitting people and businesses across Nigeria and the UK. The Summit had a strong focus on sustainable energy and on female participation in the economy.
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