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Enelamah Claims Nigeria Recorded over $20bn Investment Inflows in One Year



Dr. Okechukwu Enelamah
  • Enelamah Claims Nigeria Recorded over $20bn Investment Inflows in One Year

In a remark certain to befuddle Nigerians, the federal government claimed at the weekend that the country recorded over $20 billion investment inflows in the last one year, adding that such inflows came by way of infrastructure financing, transactions between local private sector players and their offshore counterparts, as well as sundry commitments, among others.

This is coming amid moves by the international oil companies (IOCs) to attract huge offshore funds to boost operational capacity.

The Minister of Trade, Industry and Investment, Dr. Okechukwu Enelamah, who made the disclosure in an interview weekend, listed investment inflows in the past 12 months as those from the China Eximbank, General Electric (GE), Kellogs, Coca Cola, and Chi Company, among others.

Ironically, the so-called investment inflows have not been evident in an economy reeling from a severe foreign exchange shortage, rising unemployment and spiralling inflation.

“Yes, people are surprised about how big investment inflows are because they have come in large chunks. But let me tell you that we have gotten a total of well over $20 billion,” he said.

He stated that the major infrastructure projects were part of the investment inflows, adding that what people see as investment inflows are “not just the money physically”, but also the commitments that have come.

He added: “If you look at the infrastructure projects that we are doing, there is a $20 billion or more infrastructure projects with the China Eximbank. It has been signed and it’s now implemented around railways and related infrastructure.

“There is an agreement with General Electric, which is about $2 billion which they have committed in the last one year. There are private sector investments such as Chellarams, which sold a major part of their business to Kellogs of the United States. That deal was may be about $400 million.

“There was a deal that was done by Chi with Coca Cola. That deal also ran into hundreds of millions of dollars. BUA also sold something (its flour mills unit) to an international player (Olam International of Singapore) for a substantial sum.

“However, we want to increase the steady inflow of foreign direct investment across all levels because there are many more people waiting on the sidelines, apart from the big people who are doing multi-year infrastructure projects.”

The minister recalled that the Nigerian Investment Promotion Council (NIPC) had “just appointed a new hand for the private sector”, adding that “as a government, we want to partner with the private sector”.

According to him, the government doesn’t have all the money it needs to develop the country, and it is therefore willing and committed to partnering with the private sector players and development capital to develop the country by making sure such capital goes into the right places.

“I think you will find that in investment, things are picking up even in terms of statistics. There is a significant uptick in investment, even though some of it has to do with fixed income investment. But it’s still capital that we need.

“Another thing I want to say regarding investment is that the oil companies have reached an agreement that is now being finalised to bring in more money into the oil and gas sector.

“You will hear more about it from next week (this week). We are just going through the process. You know oil; everybody has a stake in it… There was a meeting with the National Economic Council and other stakeholders will be briefed but it’s a very important programme to bring in billions of dollars into the country.

“They say you need oil to get out of oil and this will improve the oil sector significantly,” Enelamah said.

On what his ministry is doing to diversify the economy vis-a-vis trade and investment, the minister said the ministry was more of an enabler trying to put in place the requisite environment for businesses to thrive.

“The Ministry of Trade and Investment has a particularly important role to play because we view ourselves as a key enabler to those that are in industry, trade and investment.

“Permit me to explain what I mean by being a key enabler. I think all those issues that people have with doing business, whether it takes too long, whether people are trying to give them a hard time, I think we have a particular responsibility as a ministry to make it easy for them to understand and make sure government is listening to them.

“The good news is that this is what is shared by the entire government, right from the president. That was why the president launched the Presidential Enabling Business Council. That’s why it is chaired by the vice-president,” the minister stated.

He added that the ministry was also working on the Nigerian Industrial Revolution Plan as a key programme of government that would help to diversify the economy away from oil, and tilt more towards agriculture and agro processing.

CEO/Founder Investors King Ltd, a foreign exchange research analyst, contributing author on New York-based Talk Markets and, with over a decade experience in the global financial markets.


Afreximbank, AAAM to Drive Automotive Investment




Afreximbank, AAAM to Drive Automotive Investment

The African Export-Import Bank (Afreximbank) and the African Association of Automotive Manufacturers (AAAM) have entered into a Memorandum of Understanding (MoU) for the financing and promotion of the automotive industry in Africa.

President of Afreximbank, Prof. Benedict Oramah and President of AAAM/Managing Director of Nissan Africa, Mike Whitfield, signed the MoU in early February, according to a statement yesterday.

The deal formalised the basis for a partnership aimed at boosting regional automotive value chains and financing for the automotive industry while supporting the development of enabling policies, technical assistance, and capacity building initiatives.

Oramah, said, “the strategic partnership with AAAM will facilitate the implementation of the Bank’s Automotive programme which aims to catalyze the development of the automotive industry in Africa as the continent commences trade under the African Continental Free Trade Area (AfCFTA).”

Under the terms of the MoU, Afreximbank and AAAM will work together to foster the emergence of regional value chains with a focus on value-added manufacturing created through partnerships between global Original Equipment Manufacturers (OEM), suppliers, and local partners.

The two organisations plan to undertake comprehensive studies to map potential regional automotive value chains on the continent in regional economic clusters, in order to enable the manufacture of automotive components for supply to hub assemblers.

“To support the emergence of the African automotive industry, they will collaborate to provide financing to industry players along the whole automotive value chain. The potential interventions include lines of credit, direct financing, project financing, supply chain financing, guarantees, and equity financing, amongst others.

“The MoU also provides for them to support, in conjunction with the African Union Commission and the AfCFTA Secretariat, the development of coherent national, regional and continental automotive policies, and strategies.

“With an integrated market under the AfCFTA, abundant and cheap labour, natural resource wealth, and a growing middle class, African countries are increasingly turning their attention to support the emergence of their automotive industries.

“Therefore, the collaboration between Afreximbank and AAAM will be an opportunity to empower the aspirations of African countries towards re-focusing their economies on industrialisation and export manufacturing and fostering the emergence of regional value chains,” the statement added.

“The signing of the MoU with Afreximbank is an exciting milestone for the development of the automotive industry in Africa. At the 2020 digital Africa Auto Forum, the lack of affordable financing available for the automotive sector was identified as one of the key inhibiters for the growth and development of the automotive industry in Africa and having Afreximbank on board is a game changer and a hugely positive development,” CEO of AAAM, David Coffey said.

“It is wonderful to have a partner that is as committed as the AAAM to driving the development and growth of our sector on the continent; this collaboration will ensure genuine progress for our industry in Africa,” Coffey added.

Other areas covered by the MoU include working with the African Union and the African Organisation for Standardisation to harmonise automotive standards across the continent and developing an automotive focused training program for both the public and private sector.

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FG Warns Foreign Investors Against Enslaving Nigerians




FG Warns Foreign Investors Against Enslaving Nigerians

The Federal Government on Monday warned foreign investors against subjecting Nigerians working in their companies to industrial slavery.

The government said the warning became necessary following several complaints against foreign companies maltreating some of their staff.

The Chief Commissioner, Public Complaints Commission, Chile Igbawua, issued the warning during a courtesy call on him by a delegation of Pan Africa United Youth Developments Network who came to lay complaint against some foreign companies allegedly maltreating Nigerians working under them.

The PCC said that it would not allow only its state commissioners to handle the issues due to their magnitude as there had been so many complaints about the ways some of the foreign companies were treating their staff.

At the event, the leader of the delegation, Habib Muhammed, expressed concern over alleged injustice and irregularities perpetrated by some company on Nigeria youths whom they engaged as factory workers.

He called on the Federal Government to look into the alleged slavery and injustice meted on Nigerian youths.

While calling on the foreigners to obey the labour laws of Nigeria, Igbawua said, “Our resources cannot be used to enslave us again.”

He said, “We have labour laws in Nigeria for goodness sake and we also have industrial standards; people working in various industries are entitled to good working conditions and minimum conditions of service.”

He added that the law was clear on the issue of casualisation and should be implemented.

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Foreign Direct Investments into China Shot Up by 9% in 2020 to $163 Billion Against 49% US Decline




Foreign Direct Investments into China Shot Up by 9% in 2020 to $163 Billion Against 49% US Decline

China had the highest inflow of Foreign Direct Investments (FDI) globally in 2020, surpassing the US which took the lead in 2019.

According to the research data analyzed and published by Comprar Acciones, China’s inflow shot up by 9% to $163 billion up from $140 billion the previous year. Meanwhile, the US had a 49% drop from $251 billion in 2019 to $134 billion.

Based on data from the National Bureau of Statistics, China reported a 2.3% growth in GDP in 2020. It was the only major economy to record a positive growth rate during the year.

Chinese Stock Market Saw 18 Million New Investors in 2020

Global FDI took a hit in 2020, falling by 42% year-over-year (YoY) from $1.49 trillion in 2019 to $859 billion. The figure was 30% lower than the one reported during the 2009 financial crisis.

Developed countries saw the worst performance, sinking by a cumulative 69% YoY to $229 billion. For developing economies, there was a 12% decline of $616 billion. By the end of 2020, developing countries accounted for a 72% share of global FDI, the highest on record. India had the highest growth among top-rated economies, shooting up by 13%.

China bore the brunt of the pandemic much better than its peers, posting a 6.5% GDP growth in Q4 2020. During the year, there were 18.02 million new investors in its mainland stock market, raising the total to 177.77 million. Driving the surge in interest was the stellar performance of Chinese stocks in 2020.

The Shenzen Component grew by 38.7% in 2020, and the CSI 300 increased by 27.2%, compared to the S&P 500’s 16.26% growth. IPO activity also soared, with China and Hong Kong accounting for 40% of global IPO volume in 2020 according to Ernst & Young.

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