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Nigeria Attracted N7.6bn Greenfield Capital Investment in 2018 ­– Report

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  • Nigeria Attracted N7.6bn Greenfield Capital Investment in 2018 ­– Report

Nigeria attracted N7.6bn cross-border greenfield capital investment in 2018, according to the latest report by fDi Market Intelligence, a research unit of Financial Times.

A greenfield investment is a type of foreign direct investment where a parent company creates a subsidiary in a different country, building its operations from the ground up.

In terms of the number of projects, the report said foreign companies executed 52 FDI projects in Nigeria in 2018.

This put Nigeria among the top 10 destinations for FDI projects in the Middle East and Africa.

“The number of FDI projects into Nigeria increased by 49 per cent, with inward capital investment increasing by 58 per cent,” the report stated.

Commenting on the report, the Head of Content, fDi Intelligence, Courtney Fingar, said, “What it reveals is a recovery in greenfield FDI, after its 2017 decline. In 2018, greenfield FDI strengthened with the number of FDI projects increasing by seven per cent while capital investment increased by 42 per cent alongside a 25 per cent increase in job creation via FDI.”

In Africa, the investment market report stated that FDI projects experienced an increase of 12 per cent to 667 in 2018 but a nine per cent decline in capital investment to $74.2bn.

“FDI into the Middle East and Africa by project numbers increased seven per cent in 2018 to 1253, with capital investment increasing by 14 per cent. FDI into the Middle East remained stable by the number of projects with a two per cent increase to 586, while capital investment increased 64 per cent to $61.1bn,” it added.

In the Middle East and Africa region, the report said the United Arab Emirates remained the top location for FDI attracting 24 per cent of FDI projects into the region.

According to the findings, South Africa ranked second for FDI into the Middle East and Africa by the number of projects, with a three per cent increase to 103 and 33 per cent increase in capital expenditure.

“Kenya and Ethiopia both witnessed an increase in the number of FDI projects in 2018, by 14 per cent and 21 per cent, respectively. Morocco was the only location in the top 10 to witness a decrease in FDI projects into the country, with a decline of 21 per cent. However, capital investment increased by 20 per cent,” the study added.

According to fDi insights, Saudi Arabia experienced an increase in capital investment into the country of 124 per cent as well as a 27 per cent increase in overall FDI projects.

Globally, the report said greenfield FDI strengthened with the number of FDI projects increasing seven per cent to 14,845 in 2018 while capital investment increased 42 per cent to $917.3bn alongside a 25 per cent increase in job creation to 2.3 million.

It noted that China replaced the United States as the highest ranked country for FDI by capital investment, with $107.2bn recorded, boosted by major announcements from Foxconn and BASF totalling $19bn.

However, the US was the highest ranked country for FDI by the number of projects, recording 1,581 announcements compared with China’s 796 projects.

“Western Europe was the leading destination region for FDI in 2018 by the number of projects with 4,385 announcements. However, Asia-Pacific received the largest level of capital investment in 2018 with $377.7bn-worth of FDI recorded. Western Europe was the leading source region for FDI in 2018, with 6524 FDI projects recorded. This accounted for 44 per cent of all FDI globally and $305.9bn in capital investment,” the report said.

Is the CEO/Founder of Investors King Limited. A proven foreign exchange research analyst and a published author on Yahoo Finance, Businessinsider, Nasdaq, Entrepreneur.com, Investorplace, and many more. He has over two decades of experience in global financial markets.

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Investment

Saudi Arabia Aims for $80 Billion Tourism Investment to Fuel Vision 2030 Goals

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Saudi Arabia is embarking on a bold venture to attract up to $80 billion in private investment into its burgeoning tourism industry, a move pivotal to realizing its ambitious Vision 2030 objectives.

Tourism Minister Ahmed Al Khateeb unveiled the kingdom’s aspiration during an interview in Riyadh, emphasizing the imperative role of the private sector in spearheading investment endeavors.

With plans to disburse approximately $800 billion on tourism over the next decade, Saudi Arabia is steadfast in its pursuit to diversify its economy and reduce dependency on oil revenues.

Vision 2030 outlines a trajectory for the kingdom to metamorphose into one of the world’s premier tourist destinations, targeting 150 million annual visitors by 2030, a significant portion originating from overseas.

While the government and sovereign wealth fund have historically fueled tourism development, securing substantial foreign direct investment, particularly from the private sector, emerges as paramount in expediting Vision 2030 initiatives.

The kingdom’s fiscal projections, forecasting deficits until 2026, underscore the urgency of engaging private investors to actualize the ambitious tourism blueprint.

Saudi Arabia, having welcomed 100 million tourists in 2023, predominantly domestic travelers, eyes international markets such as India, China, the UK, France, and Germany for tourist influx.

A new program launched by the Ministry of Tourism aims to streamline investment processes, potentially unlocking $11 billion in private investment, bolstering Saudi Arabia’s tourism trajectory and reshaping its economic landscape.

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CBN Unveils Plan to Settle N1.64 Trillion Treasury Bills in Q2 2024

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The Central Bank of Nigeria (CBN) has announced its strategic approach to managing liquidity and meeting financial obligations by unveiling a comprehensive plan to settle Treasury Bills (TBs) worth N1.64 trillion during the second quarter of 2024.

This initiative, part of the CBN’s Nigeria Treasury Bills Issue programme, aims to regulate the money supply within the economy while effectively managing liquidity dynamics.

According to documents obtained by Investors King, the TBs settlement program is slated to commence on March 7th and conclude on May 23rd, 2024.

The CBN will focus on settling TBs with varying tenors, including N414.29 billion on 91 days, N43.74 billion on 182 days, and a substantial N1.18 trillion on 364 days.

The breakdown of the settlement plan reveals monthly settlements to address maturing TBs. In March, the CBN plans to settle N660.62 billion worth of TBs, followed by N292.17 billion in April and N688.3 billion in May.

Market analysts interpret this move as a testament to the CBN’s commitment to managing financial obligations and maintaining economic stability.

It provides investors with opportunities to engage in short-term financial instruments while contributing to overall liquidity dynamics.

The strategic settlement plan reflects the CBN’s proactive stance in navigating economic challenges and ensuring stability within the financial landscape.

As the apex bank implements these measures, stakeholders will closely monitor their impact on market dynamics and economic indicators, anticipating implications for investment decisions and monetary policy outlooks.

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China’s State-Owned Lenders Allocate $8 Billion to Revitalize Property Market

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China’s state-owned lenders have committed a substantial $8 billion in loans to rejuvenate the country’s beleaguered property market, aligning with Beijing’s directives to bolster the sector.

Agricultural Bank of China Ltd. disclosed approving over 40 billion yuan of loans for real estate projects on predefined white lists, signaling a proactive approach towards supporting the housing market’s recovery.

China Construction Bank Corp. also joined the effort, extending 3 billion yuan to five property projects, with plans to greenlight over 20 billion yuan in loans soon.

Industrial & Commercial Bank of China Ltd. and Bank of China Ltd. are among the institutions offering financing assistance, although the exact loan amounts remain undisclosed.

This initiative follows Beijing’s recent call for local authorities to enhance financing support for developers and curate lists of eligible projects.

In response, the big four state lenders pledged to meet reasonable financing demands from developers and projects identified under the coordination mechanism.

However, China’s property market faces challenges despite these measures. New home sales plummeted 34.2% year-on-year, underscoring the ongoing slowdown.

While existing home transactions surged during the Spring Festival holiday, new home sales remained subdued, prompting a cautious outlook among buyers.

The infusion of $8 billion aims to instill confidence and stimulate activity in the property sector, potentially heralding a gradual recovery amid persisting market uncertainties.

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