Unveils 240bn euro Africa investment fund
By Ndubuisi Francis in Paris, France
Despite the various challenges bedeviling the country, France has described Nigeria as investors’ unavoidable destination.
French Minister of Finance and Economy, Mr. Michael Sapin, who disclosed this at the weekend, said Nigeria would be a major beneficiary of a 240 billion Euro fund being earmarked by France for investment in Africa as the European nation renews its investment drive on the continent.
Sapin stated that investing in Africa without Nigeria was unthinkable, adding: “if you are not in Nigeria, you are not in Africa”.
“With a huge market and investment potentials, he noted that “no serious investor can ignore Nigeria, given the large population, highly skilled human capital and massive untapped natural resources.”
Sapin said already a contact group had been formed to ensure that French investors took the centre-stage of business activities in Nigeria and African countries.
“Perception about Africa is changing rapidly, especially after over a decade of steady impressive economic growth, even when most regions of the world were experiencing slow growth or even recession.
“French investors have to know this, that French needs Africa. With a budding young population who are highly skilled and entrepreneurial, we must give impetus to this needed collaboration between Africa and France,” Sapin said.
French President, Francois Hollande, who unfolded France’s renewed investment plans in Africa at the ‘French-African Forum for a Shared Growth’ in Paris, France at the weekend, described Africa as “our future.”
Hollande stated that Africa stands out as the world’s preferred investment destination, considering its impressive economic growth over the years and abundant unexploited human and natural resources.
His government, he said, was adopting a multi-pronged investment drive in Africa as well as infrastructure funding, noting that France was willing to woo a number of countries to invest in Africa.
The French leader noted that there was a convergence of cultural links, assuring that France would support Africa better in investment and funding of projects.
He said the 240 billion euro being earmarked by his government for Africa would help African countries drive their growth, admonishing French companies to be more aggressive in their investments in Africa.
“Africa is our future. It is a continent with great demographic evolution. It has recorded the highest growth in the last few years. It is also a continent full of untapped resources...,” Hollande said, noting that Africa boasts an army of vibrant youth population unlike other continents
Besides the 240 billion euro earmarked for investment in Africa, he disclosed that an export bank was being put together at the end of March to help African countries access funds.
President Goodluck Jonathan was represented at the forum, attended by many African leaders, ministers and corporate chieftains, by the Coordinating Minister for the Economy and Minister of Finance, Dr. Ngozi Okonjo-Iweala.
At a session on “Financial Innovation for a Shared and Inclusive Growth,” Okonjo-Iweala stated that existing resources fall short of what is required to surmount various challenges in Africa, citing, for instance, the United Nations Development Programme (UNDP) figures which says that $30 billion investment is required annually to eradicate poverty.
The minister said there was the need to come up with more innovative financing options to meet various needs in Africa, adding that how to raise far more domestic resources was imperative.
She said more efforts should be channelled into what she described as "traditional sources" of projects funding.
Okonjo-Iweala, who said Nigeria was adopting a Public Private Partnership (PPP) arrangement to finance two flagship projects—the Second Niger Bridge and the Lagos-Ibadan Expressway, noted the problem with PPPs was that it takes up to seven years to conclude such arrangements which is longer than the lifespan of an administration.
But she said with the involvement of the Nigeria Sovereign Investment Authority (NSIA), managers of the Sovereign Wealth Fund (SWF) in the Second Niger Bridge, the Jonathan administration was working on leveraging on the available legal and technical expertise to see how to wrap up everything, including financing within three years.
The minister also said another innovative financing source was Diaspora remittances, which could be securitised as well as financial inclusion, which incorporates people from the lower rungs of the ladder- Thisday newspaper
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