The African Capital Alliance (ACA), a personal equity fund manager in western Africa, announced the raising of $200 million from investors in July last year. Your third installment from the Capital Alliance Private Equity (CAPE) fund will target important sectors such as power, oil and gas, communications and financial services in Nigeria and over the sub-Saharan region. The ACA is confident of eventually raising an absolute of $350 million to the fund from aid agencies, international banks and Nigerian institutional investors. The development reflects mounting confidence in Nigeria’s resurgent economy, with the country’s fist such fund that began in 1998 with a capital of just $35 million.
Exactly what is happening currently together with the Nigerian financial product is not even close to being affected in any respect by the global credit crisis. At global level currently, the banks are under-capitalised, but Nigerian banks in accordance with naija newspapers have ended-capitalised. And So I will not think this really is a problem in any way. I think that Nigerian banks are under pressure from other economies within Africa continent that are influenced by the credit challenges.
Agriculture is known as a catalyst to the overall development of any nation; development economists have always assigned the agriculture sector a central place in the development process, early development theorists though emphasized industrialization, they counted on agriculture to deliver the essential production of food and raw materials, combined with the labour force that could gradually be absorbed by industry and services sector. Much later thinking moved agriculture towards the forefront in the development process; the hopes for technical improvement in agriculture and “green revolution” suggested agriculture because the dynamo and magic wand for economic development and growth.
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The industrial revolution of your Nineteenth century which catapulted the agrarian economies of most countries of Europe got their stimuli from agriculture; the sector in recent history has also worked a significant miracle in countries like Mexico, India, Brazil, Peru, Philippines and China where the Green Revolution was one of several great success stories. Indeed, the importance of agriculture in almost any nation’s economy can not be over emphasized, as an illustration, in United states, agriculture contributes about 1. 1% from the country’s Gross Domestic Product.
Up against numerous challenges, Nigerian government is determined to bolster, diversify and make the economy attractive and investment-friendly to both local and foreign investors. The us government has adopted total liberalization and globalization because the economic policy, instituted privatization and commercialization programmes of public enterprises, provided total security for business and folks, extended invitation to domestic and foreign investors, abolished laws inhibiting competition, embraced and fine-tuned policies to ensure quick realization of development and growth of most sectors from the economy. The effort is repaying as Nigeria has become the focus for foreign investment thereby increased exponentially Foreign Direct Investment (FDI). Lots of economic missions and delegations from developed and developing countries have visited Nigeria, thus accelerating the expansion from the economy at the fast rate.
This is why venture capitalism derives its significance inside the context of Nigeria’s long term ambitions. Private equity investment is liable for probably the most notable economic success stories around the world. Entrepreneurs starting out with angel loans turned India around into the largest software exporter on earth. In South Korea, booming small high-tech businesses bypassed larger firms to lead the country’s recovery from the Asian financial meltdown. Equity funded enterprises have likewise recorded high growth figures in developing countries from Asia, across Europe as well as in South America. The global experience with venture capitalism throws up a variety of important considerations in terms of giving the right environment for rapid growth. The subsequent are the most important challenges and considerations facing Nigerian policy makers in this regard:
Nigeria’s reforms process as explained on nigerian news prompted an exclusive voluntary initiative in the turn from the last century once the Nigerian Bankers’ Committee launched the Small and Medium Enterprise Equity (SMEEIS) scheme. Billed as an make an effort to promote entrepreneurial expansion, the scheme required all locally operating commercial banks to earmark 10% of pre-tax profits for equity investment in small and medium enterprises. Although more than Naira 18 billion was set aside by 2003, utilisation in the funds remained abysmally poor at less than 25%. The Nigerian Central Bank owed it to an absence of viable projects and general reluctance toward equity partnership. If poor managerial and business packaging skills are areas of concern, the prevailing mindset against venture capitalism both in existing and emerging enterprises is much more so.
In telecommunication, statistics reveals that cell phone users in Africa were about 280 million, overtaking Usa and Canada with their 277 million users in the opening quarter of 2008. With 70 million connections in 2007, the Continent became the fastest growing region on earth, representing a expansion of 38 percent, ahead of the Middle-East (33 %) as well as the Asia-Pacific (29 %).It was also shown that the easiest growing investing arenas are positioned in northern and western Africa, representing altogether 63 percent in the total connections in the region.
Peter Osalor as seen on naija news is a multi-skilled director, chairman of trusts, proprietor and consultant. Peter Osalor is a huge successful entrepreneur since 1992 when he formed Peter Osalor & Co and which contains since grown into a huge client base having a turnover of millions. He is currently a fellow in the Association of Chartered Certified Accountants (ACCA) and the Institute of Chartered Accountants in Nigeria (ICAN). Peter is yet another part of the Chartered Tax Advisors and also the Chartered Institute of Taxation in Nigeria (CITN).
As Nigeria makes up about 57 per cent in the West Africa cell phones, the country is acknowledged because the leading along with the fastest growing telecom market in Africa. With cellular phone users at 44,932,181 and 734,444 for GSM and mobile CDMA respectively, her contributions to West Africa and Africa’s telecommunication growth cannot be overemphasized. As the overall economic growth rate stands at 7% each year, the mobile telephony is about 35-50%. Assuming that every one of these connections was busy for any minute in a day, the nation telecoms market has the capacity to generate over USD 16 million each day (USD16, 666,667) and close to USD 6 billion each year (USD 5,833,333,300). This is why telecom companies including Visafone and Etisalat quickly joined the likes of MTN, Globacom, Celtel and other telecoms agencies in exploiting opportunities in the country.